The Estate Settlement Process and the Role of a Corporate Fiduciary

By Jon Allee – Assistant Vice President & Relationship Manager

Estate settlement is the legal and financial process of managing and distributing a deceased person’s assets according to their will or, in the absence of one, under state intestacy laws. While some families may choose an individual executor or personal representative – often a relative or friend – there are compelling reasons to consider appointing a corporate fiduciary to oversee this important responsibility.

Understanding Estate Settlement

The estate settlement process typically includes:

1. Locating and validating the original Last Will & Testament (if one exists).
2. Petitioning the court for probate and appointment of an executor or administrator.
3. Identifying, securing, and valuing estate assets.
4. Paying debts and taxes, including income and estate taxes.
5. Distributing remaining assets to beneficiaries as specified in the will or by law.
6. Providing court-required documentation, including accounting and status reports.

This process can take months or even years, depending on the estate’s complexity, and is often fraught with legal, financial, and emotional challenges.

Why Use a Corporate Fiduciary?

A corporate fiduciary, like Central Trust Company, can offer professional estate administration services, and naming our institution as executor of your estate can offer several distinct advantages:

Professional Expertise

Estate settlement involves legal filings, tax returns, asset management, and regulatory compliance. Central Trust Company has dedicated professionals with expertise in these areas, who can minimize errors and ensure all legal requirements are met efficiently.

Objectivity and Impartiality

Family dynamics can become complicated during estate administration, particularly if there are disputes over assets. A corporate fiduciary acts as a neutral third party, helping to avoid conflicts of interest and emotional decision-making that could lead to litigation or fractured relationships.

Continuity and Reliability

Unlike individuals who may become ill, pass away, or decline the role, a corporate fiduciary is a perpetual entity. This ensures the estate settlement process continues uninterrupted and that fiduciary responsibilities are always fulfilled.

Risk Management and Accountability

Corporate fiduciaries are held to high legal and ethical standards and are subject to rigorous regulatory oversight. We carry insurance and bonding that protect the estate against mismanagement or malfeasance – safeguards not typically available with individual executors or administrators.

Efficiency and Timeliness

Because of our experience and infrastructure, corporate fiduciaries often complete the estate settlement process more efficiently than inexperienced individuals. We can quickly marshal assets, resolve creditor claims, and distribute inheritances – saving time and potentially money for your estate.

Comprehensive Recordkeeping

Estate administration requires meticulous documentation. Corporate fiduciaries provide detailed records and reports that not only satisfy court requirements but also offer transparency to heirs and beneficiaries.

Situations that Particularly Benefit from a Corporate Fiduciary

While any estate can benefit from professional oversight, a corporate fiduciary is especially valuable in situations involving:

• Complex or high-value estates
• Family disputes or estranged heirs
• Out-of-State assets or international considerations
• Blended families or second marriages
• Special needs beneficiaries
• Charitable or trust components

Peace of Mind Through Professional Stewardship

Appointing a corporate fiduciary is a proactive way to ensure that an estate is managed with integrity, precision, and impartiality. While the personal touch of a family member may seem appropriate at first glance, the responsibilities and potential liabilities often outweigh the perceived benefits. Choosing a professional can ultimately provide peace of mind for you and your loved ones, safeguarding the legacy you intend to leave behind.