Ten Pitfalls for the Unwary

• Author: Margaret A. Munro, Kathryn A. Murphy
• Profession: Has more than 30 years' experience in trusts, estates, family tax, and small businesses/Attorney with more than 20 years' experience administering estates and trusts and preparing estate and gift tax returns
• Pages: 345-351

CHAPTER 21 Ten Pitfalls for the Unwary 345

Chapter21

Ten Pitfalls for the

Unwary

So much of administering a trust or estate is similar to handling your

personalnances.However,youcaneasilyforgetthatyou’reactuallywork-

ingin aduciarycapacity, notan individualone,and thatthere aresome

majordierences. Infact, oneof thebiggest issueswe’ve runupagainst when

assistingclients, family,and friendsin theiradventures inadministration isin

articulatingwhere the dierenceslie. This chapter coversmany of thelessons

we’vediscovered regarding what youdenitely should —and shouldn’t —do

whenadministeringanestateortrust.

Failing to Terminate an Existing Real

Estate Purchase and Sale Agreement

Asfarascostlymistakesgo,not endinganexistingrealestatepurchaseandsale

agreementwhen thedecedent isthe sellerishuge! Keepingthe originalagree-

mentinplacemaysubstantiallyincreasethetaxesyou’lloweonthesale,costing

theestate,andtheeventualheirs,big-time.

IN THIS CHAPTER

»

Avoiding careless mistakes and

sidestepping administration dangers

»

Using good judgment