When a person dies leaving assets requiring formal estate administration, an executor or administrator must qualify with the Clerk of the Court in the city or county where the decedent lived at time of death in order to probate the will, if there is one.

The administration of a decedent's estate involves a number of duties.  The accounting aspect is a little like calculating what we do with a paycheck. We pay taxes on the money, invest or deposit our net pay, use the money to pay expenses and debts, hopefully disburse some of the money and eventually we reach zero.

One very important difference with estates is that the executor or administrator is handling money and assets for someone else - the decedent and the beneficiaries, heirs or creditors of the decedent.  Executors and administrators are fiduciaries and are held to a high standard of responsibility and trust. They must document their actions and show that they have acted properly and in accordance with the decedent's will, if there is a will, and applicable law.

Virginia law provides for court supervision of the actions of executors, administrators and trustees. They must take possession and control of estate assets, file an inventory of the assets, and file accountings itemizing and documenting all receipts, disbursements and distributions of the assets.

Although the process of receiving and properly disbursing estate assets as described may sound simple, it can be a complicated process even for relatively small estates. Errors can result in personal liability for an unwary executor or administrator.

An executor or administrator can save time and reduce complications and personal liability by obtaining professional legal, tax and investment advice when handling an estate.

• Whether probate of a will or qualification of an executor or administrator is necessary.

• Identifying, obtaining control over, and valuing estate assets.

• Evaluating and handling creditors claims against the estate.

• Determining spousal or family rights in appropriate cases.

• Determining proper distribution of estate assets to beneficiaries under a will or applicable law and the timing of distributions.

• Handling an insolvent estate.