Handling administrative expenses for an intestate estate Lombard could present challenges you may feel unprepared to address. This is understandable, especially when someone so close to you has recently passed with no plan of action. Instead of venturing into the legal field alone, let an attorney stand by you and help you pay necessary accounts.

Costs Associated with Property Administration without a Will

There are certain costs associated with the administration of property in the absence of a will, specifically with intestate estates versus testate estates. The obvious one is the bond. Most wills waive the requirement for a surety bond. A surety bond is an insurance policy that someone handling an estate has to take out to protect the estate from themselves. That is used in case a person breaches their fiduciary duty. If they are supposed to be handling the estate and instead they steal everything, they give it to their relatives, or they spend it on themselves, there is an insurance policy in place that could reimburse the estate.

However, most wills waive the requirement for a surety bond because it is a premium and it could be expensive. In situations in which a person dies without a will, they are going to be required to purchase a surety bond, and that premium would be paid out of the estate.

Other times if a person dies without a will or they have not been given the choice so they have not bequeathed their property to any specific person, they have to go looking for all their heirs. There could be costs associated with looking for heirs. If there are numerous heirs like first cousins or first cousins once removed as the closest living family members. Estates could become exceptionally complicated and messy quickly if there is no will that limits where the property is going. In events where people suspect that there would be problems in the future, they should consider working with an attorney familiar with administrative expenses for intestate estates in Lombard.

Tax Implications and Admin Expenses for Intestacy in Lombard

The main tax implication of dying intestate is if a person’s estate is over the exemption amounts for estate taxes. If a person’s estate in Illinois and Lombard is over $4 million, then that estate is going to owe state estate taxes. If their estate is about or above $11 million, then that estate is going to owe federal estate taxes. If a person died intestate and there was never any implementation of any estate tax-planning strategies, if the estate is over that amount there would probably a federal estate tax due. While disagreeable, this administrative expense for a Lombard estate and will is a required expense.

Who Pays Taxes on an Estate

Generally, attorneys are responsible for handling administrative expenses for Lombard wills and estates. They prepare the estate tax returns which could include federal Form 706. Sometimes they do it in cooperation with accountants. Accountants would still handle a lot of tax matters, but Form 706 could be legal in nature, so attorneys would handle the preparation of the estate tax returns.

Speak Directly to an Attorney Who Could Help with Administrative Expenses in Lombard

If you find yourself overwhelmed with administrative expenses for your intestate estate in Lombard, you need to consider working with a legal professional. An attorney could address all the expenses that are required of you. Call today to start your case review.