EARLY STEPS FOR ESTATE ADMINISTRATION
Find, read, and safeguard Will and Living Trust, if available. Meet members of family and other interested parties; assist in notifications and preparations of burial/cremation and ceremonial arrangements; determine who is to be Executor/Administrator of Estate. Notify employer; arrange for care of surviving spouse, dependent children, & pets; cancel home services & subscriptions; arrange for yard care; and forward of arrange for mail pick-up. Secure portable valuables (cash, art, jewelry, collections, firearms, etc.) & medications. Request Death Certificate. Confer with attorney who drew the Will and persons familiar with financial affairs of Estate.
GATHER ESTATE RECORDS & INFORMATION
Gather available Estate records & information (see Estate Record Checklist). Review Probate guidelines & determine if Probate is necessary.
NOTIFICATIONS
Notify banks, insurance companies, former employers, Social Security Admin., pension payers, mortgage company, HOA, credit card companies, volunteer & social groups, health providers, USPS, Veterans Affairs, DMV, etc.
SAFEGUARD THE ASSETS
Review records & information for Estate; take immediate protective measures to protect assets.
- Secure Personal Property (cash, furniture, electronics, jewelry, antiques, art, collectables, vehicles, firearms, tools, china/crystal/silver, equipment, etc.)
- Protect Real Property. Inspect condition, review live-in caretaker or vacant options, keys/locks, upkeep, ongoing bills (mortgage, taxes, HOA, alarm, utilities, insurance, etc.) Review leases, management for vacation houses, investment properties, etc.
- Secure Business Interest (business records & property). Confer w/ key people in management & arrange for ongoing business as needed.
- Protect Securities & Intellectual Property (cash, bank accounts, retirement accounts, securities, pensions, insurance policies, royalties, copyrights, patents etc;
- PETITION COURT FOR PROBATEGather names and addresses of heirs & beneficiaries. Obtain proof of heirship and locate witnesses. File Petition For Probate with Court. Publish & mail notifications, file proof of published & mailed notifications, file other documents as required. At Probate Court Hearing, Letters of Testamentary/Administration may be issued if no objections and case in order
LETTERS ISSUED – EXECUTOR/ADMINISTRATOR APPOINTED
Obtain Employer Identification Number (EIN) for the Estate from the IRS; open Estate bank account. Assure assets have been safeguarded (see above Safeguard The Assets step).
INVENTORY & APPRAISAL OF ASSETS
- Inventory personal property; give special study to valuable collections & gather appraisals as needed.
- Take steps to collect cash from life insurance policies & benefits. Secure tax waivers and collect cash.
- Inventory real property; obtain appraisal from Probate Referee. (Recommend getting a CMA from a qualified Agent.
- Obtain custody of securities. Collect all interest and dividends.
NOTIFICATION OF CREDITORS
Gather information on Creditors of the Estate. Request all claims for amounts due, locate evidence & witnesses claims, contest unwarranted claims.
ADMINISTER THE ESTATE
Administer the estate governed by the wishes expressed in the Will, the requirements of the Estate, and local Probate law
- Determine method of distribution of personal property not bequeathed. Make careful estimates of amount of cash to be raised for payment of taxes, legacies, expenses of administration, and of probable net estate for distribution.
- Determine method of distribution of personal property not bequeathed. Make careful estimates of amount of cash to be raised for payment of taxes, legacies, expenses of administration, and of probable net estate for distribution.
- Make comprehensive review of market conditions for each security to decide which should be sold first, if necessary to meet taxes, expenses, claims, and specific bequests.
- Investigate all real property from standpoint to earnings, market, and desirability in case circumstances required for sale.
- Arrange for necessary proceedings to release securities of property located in other states
- Review assets bequeathed to heirs and beneficiaries.
SETTLE ALL PROPER CLAIMS
Review all available evidence regarding propriety of each claim filed, resist all improper claims, and pay all approved and allowed claims from Estate.
FILE TAX RETURNS
Gather records & information to prepare and file tax returns for each taxing agency (IRS, CA Franchise Tax Board, etc.). Make careful survey of all possible tax claims to assure no further liability exists upon review of taxing agencies. (Tax laws & regulations regularly change; recommend working with a qualified Accountant/Tax Expert to discuss taxes and prepare appropriate Tax Returns).
- Income Taxes: File Federal and State Income Tax Returns for Decedent’s income tax liability for part of year prior to death if needed. Pay any taxes due.
- Federal Estate Taxes: Review Estate’s value to determine if falls above or below the exemption. File Federal Estate Tax Return if applicable. Pay any taxes due.
- Estate Income Taxes: If income generated by Estate after Decedent’s death, file Federal and State Estate Income Tax Returns as needed. Pay any taxes due.
- State Inheritance Taxes: Although CA does not currently have an inheritance tax, review state tax laws of state of residency and/or property located in other states. Arrange for release and waiver of securities as needed. Pay any taxes due.
DISTRIBUTE PROBATE ESTATE
Prepare for final account showing in detail all receipts and disbursements from Estate. Notify interested parties of Final Hearing & file proof of notifications. Distribute property by transferring assets to new owners (get receipts) as directed by Court.
OBTAIN FINAL DISCHARGE
After final payment and distribution to legatees and devisees; secure final discharge as a Executor/Administrator.