What is the Open Estate of a Deceased Person?
An open estate is a term used to describe the legal entity that is created following the passing of a deceased person. The open estate is responsible for the payment of the deceased person’s liabilities, the collection of all assets, and the distribution of assets in accordance with any will or other applicable state law. In some cases, the surviving family members and the courts can be involved in the creation and maintenance of the open estate. All open estates must adhere to the applicable law associated with wills and estate planning.
How Long Can an Estate Be Open?
The length of time an estate is open following a death varies from state to state, as each state has its own laws governing this matter. Generally, most states allow an estate to remain open from six months to two years or more. Some states impose a maximum amount of time that an estate can remain open based on the terms of the will or intestacy statutes. Nonetheless, the typical open estate period is anywhere from six months to two years.
What are the Responsibilities of the Executor During an Open Estate?
During the open estate process, the legal executor of the estate holds a great deal of responsibility. Their main duty as executor is to protect, preserve, and distribute the assets of the estate in accordance with state laws and any legally-binding wishes of the deceased.
The executor is also responsible for paying off all debts and liabilities of the estate, including funeral expenses and administrative costs associated with the open estate. Depending on the state, the executor may be required to post a bond to ensure that these obligations are paid, and the property is being disposed of according to the requirements of the state probate court.
What are the Penalties for Closing an Estate Open Longer than the State Allowed?
The length of time an estate can remain open is set by state law and an executor can face significant penalties if they close the estate a longer period than what is allowed. If a state requires the estate to be open for a year but the executor waits two years to close the estate, they may face fines and other penalties under state law. In some cases, the executor may be required to pay out-of-pocket for any costs associated with the extra time that the open estate was in effect.
