| At one time or another, we will all | | | | Locate and secure the deceased person's |
| experience the loss of someone we love. | | | | assets and then sensibly manage them during |
| Dealing with that death is difficult because | | | | the probate process, which commonly takes |
| we are not only dealing with our own | | | | about a year. Depending on the contents of |
| emotions, but with those of family and | | | | the will, and the financial condition of the |
| friends whose sorrow may be even more painful | | | | estate, this may involve deciding whether to |
| than our own. | | | | sell real estate or securities owned by the |
| | | | deceased person. |
| You may also have the responsibility to act | | | | |
| as executor for the decedent's estate if you | | | | Handle day-to-day details, such as |
| are a spouse, a son or daughter. While it may | | | | terminating leases, credit cards and other |
| be practical to say that everyone needs to | | | | outstanding contracts, and notifying banks |
| make a will, put their 'final arrangements' | | | | and government agencies-for example, the |
| in writing and leave instructions for the | | | | Social Security Administration, the post |
| heirs, I'm sure it wouldn't surprise us to | | | | office, Medicare and the Department of |
| learn that many people do not take this | | | | Veterans Affairs-of the death. |
| sensible approach. Consequently, after they | | | | |
| die, their family members and friends proceed | | | | Set up an estate bank account to hold money |
| in a state of semi-confusion trying to wrap | | | | that is owed to the deceased person-for |
| up the decedent's affairs. | | | | example, paychecks and stock dividends. |
| | | | |
| If you are an executor and find yourself in a | | | | Pay continuing expenses-for example, mortgage |
| similar situation, take heart. There are now | | | | payments, utility bills and homeowner's |
| more options available to you than running | | | | insurance premiums. |
| off to the lawyer's office. You have the | | | | |
| option to hire a lawyer to act as a coach and | | | | Pay any debts that the estate is legally |
| have him answer your legal questions, do some | | | | required to pay. |
| research and review legal paperwork before | | | | |
| submitting them to the court or mailing them. | | | | The executor must also notify creditors of |
| | | | the probate proceeding. State law will define |
| Other options include hiring a document | | | | the required method of notice. Creditors have |
| preparation service, like DocuPrepUSA, to | | | | a certain amount of time-usually about four |
| prepare the probate paperwork and the myriad | | | | to six months-to file a claim for payment of |
| of correspondence needed to wrap up the | | | | any bills or other obligations you have not |
| decedent's affairs. If you are the | | | | voluntarily paid. The executor decides |
| do-it-yourself kind, you can also consult | | | | whether a claim is valid. |
| some books written for non-lawyers. | | | | |
| | | | Pay income taxes. Federal tax returns must be |
| The Executor's Handbook, by Theodore E. | | | | filed for the year in which the person died. |
| Hughes and David Klein (Facts On File) is a | | | | |
| general but useful guide to an executor's | | | | Pay estate taxes if necessary. It is |
| duties. How to Settle an Estate, by Charles | | | | unlikely, but state and federal estate tax |
| K. Plotnick and Stephan R. Leimberg (Plume) | | | | returns may be required. Only very large |
| also has general coverage of executor's | | | | estates owe federal estate tax; for deaths in |
| duties, but the emphasis is on financial | | | | 2001, if someone leaves less than $675,000 |
| issues. So review your options carefully, and | | | | worth of property, no federal estate tax is |
| if you choose wisely, you will save yourself | | | | due. (And any amount of property left to a |
| and your family a lot of unnecessary expense. | | | | surviving spouse who is a U.S. citizen is |
| | | | estate tax-free.) This exempt amount is set |
| There are many ways to establish your assets | | | | to rise until it hits $3.5 million in 2009, |
| prior to death that would help your family | | | | and the federal estate tax is scheduled to be |
| avoid the expense of probate. First and | | | | repealed in 2010. However, the tax will |
| foremost, it will be the executor's task to | | | | reappear in 2011 unless Congress extends the |
| decide whether probate court proceedings are | | | | repeal. |
| needed. However, probate is an entirely | | | | |
| different matter that needs to be address in | | | | Most states do not collect estate taxes of |
| another article. Let's look at some of the | | | | their own, but take a piece of the federal |
| duties we may not be familiar with that are | | | | taxes due, if any. Some states impose |
| undertaken by an executor. | | | | inheritance tax; rates depend on who inherits |
| | | | the property. Check with your states' taxing |
| Giving Notice | | | | authority. |
| | | | |
| Usually the Funeral Director orders as many | | | | Supervise the distribution of property-such |
| certified copies of the death certificate as | | | | as cash, personal belongings and real |
| you request. Sometimes, they even notify the | | | | estate-to the people or organizations named |
| Social Security Administration too. | | | | in the will. |
| | | | |
| Here is a list of institutions that the | | | | When debts and taxes have been paid and all |
| executor needs to contact in order to learn | | | | the property distributed to the |
| whether they want certified copies of the | | | | beneficiaries, ask the probate court to |
| death certificate:a.) Every insurance company | | | | formally close the estate. |
| that insured the decedent (life, health, | | | | |
| auto, home)b.) Decedent's pension fundc.) | | | | Being an executor involves lots of details |
| Each credit card company used by decedentd.) | | | | and handling many mundane tasks. So, some may |
| Every financial institution (banks, | | | | think that being meticulous is the most |
| brokers)e.) Government agencies (Social | | | | important attribute to look for when naming |
| Security, IRS, Medicare, Veterans Affairs)f.) | | | | the executor of your will. However, I think |
| Title company that insured decedent's real | | | | trust is really the characteristic you want |
| estate | | | | for your executor. |
| | | | |
| You can usually order extra copies of the | | | | Others choose someone who stands to inherit a |
| death certificate from the bureau of vital | | | | substantial amount of their property. |
| statistics in your state. If the decedent | | | | Naturally, a person with an interest in the |
| owned property in another state, then a death | | | | outcome is likely to be conscientious in |
| certificate may need to be recorded in the | | | | managing your affairs after your death. When |
| county where that property is located. In | | | | you consider the alternative, that executors |
| many states, the death certificate is | | | | are only paid a small percentage of the |
| recorded along with the deed of transfer. | | | | estate (the exact amount is state regulated) |
| | | | you will want to choose someone who will |
| Other Duties | | | | honor their fiduciary responsibility and is |
| | | | willing to do the job. |
| An executor has a number of duties, the | | | | |
| complexity of which depends upon the deceased | | | | Ref: Guiding those Left Behind in |
| person's estate. Typically, an executor must: | | | | Pennsylvania, Amelia E. Pohl, Esq. And Harold |
| | | | N. Fliegelman, Esq. |