How to Locate a Decedent's Assets through the Mail
A decedent’s mail can be an important resource for an estate administrator who is in the process of marshalling the decedent’s assets. As you read the decedent’s bills, statements, and correspondence, [more…]
How to Research a Potential Estate Attorney’s Credentials
When choosing an attorney to assist with your estate or trust, you should research credentials and conduct interviews. Check the Web site of the firm at which the estate lawyer is employed. Also check [more…]
How to Avoid Double-Dipping Deductions for a Decedent, Estate, or Trust
When preparing a decedent’s final income tax Form 1040, or an estate or trust’s Form 1041, it is important to be aware of any deductions that may already have been taken on the estate tax Form 706. Many [more…]
How to Calculate Interest and Dividends for a Decedent, Estate, or Trust
When filing Form 1040 or Form 1041, your first task is to determine how much income the taxpayer (whether trust, estate or decedent) earned. Two of the main types of income you’ll have to deal with are [more…]
How to List a Decedent's Household Property
The executor of an estate is responsible for the decedent’s household items and personal property. Prepare a detailed inventory of all the personal and household items [more…]
How to Pay a Trust's Expenses
In addition to making payments to the beneficiaries, as trustee, you’re also responsible for paying the expenses you incur in administering the trust. The primary expenses include trustee’s fees, investment [more…]
How to List a Decedent's Large Assets
When marshalling — locating and listing — a decedent’s assets, an estate administrator might begin with the largest assets: real estate and vehicles. Large assets will often be easy to find, but it is [more…]
How to List and Value a Decedent’s Small Businesses
If a decedent owned a small business, in full or in part, the estate’s executor needs to value that small business and decide whether to continue the business or sell it. Use the decedent’s tax return [more…]
Write a New Property Sale Agreement for an Estate
If you are administering an estate in which the decedent was in the middle of a property transfer at the time of death, cancel the old purchase and sale agreement. Then write a new agreement in which the [more…]
What Is the Federal Estate Tax?
The federal estate tax applies to large estates. The year of the decedent’s death determines the qualifying value of the estate. If you are administering an estates that qualifies, you must complete Form [more…]
Roll an Estate’s Pension Plan or IRA to the Heirs
If you are administering an estate with a pension plan or IRA, roll the account to the estate heirs. Do not take a lump sum distribution on the pension plan or IRA for the estate, because the estate will [more…]
What Is State Inheritance or Estate Tax?
The rules for state inheritance and estate taxes vary based on the state. Check with the tax department of the decedent’s state for that state’s inheritance and estate tax requirements. [more…]
Calculate Decedent, Estate, or Trust Business Income and Capital Gains and Losses
In order to file Form 1040 or Form 1041, you will need to determine how much business income, if any, the taxpayer (whether trust, estate or decedent) earned, and calculate capital gains and losses. The [more…]
What Fees Do Estate and Trust Attorneys Charge?
Estates and trust attorneys typically charge clients in one of three ways: hourly fee, flat fee, or contingency fee. In addition to the attorney’s regular fees, you should expect to be billed for miscellaneous [more…]
How to Find an Appraiser for Your Estate or Trust
As an executor or trustee, you may need an appraiser to estimate the value of the assets of the decedent’s estate. You will need to provide asset valuations on Form 706, and you will need to have official [more…]
How to Hire a Tax Professional for Your Estate or Trust
As the administrator of an estate or trust, you may find that you need a tax professional to help you handle the taxes and accounting for the decedent’s assets. You may therefore choose to hire a Certified [more…]
How to Find an Estate or Trust Attorney
When searching for an attorney to help with your estate or trust, resources worth consulting include the phone book and the Martindale-Hubbell database, which lists most lawyers in the United States. Your [more…]
How to Find Resources for Administering an Estate or Trust on Your Own
If you decide to administer an estate or trust on your own, there are important resources you should consult concerning tax issues, tax forms, probate courts, and more. Be sure to consult the necessary [more…]
What Taxes Might an Estate Need to Pay?
An estate may need to pay several taxes, including federal and state transfer taxes. Federal transfer taxes include the federal gift tax, the federal estate tax, and the generation-skipping transfer [more…]
How to Deduct Administration Expenses for a Decedent, Estate, or Trust
When filing Form 1040 or Form 1041 for a decedent, estate, or trust, you must determine how to deduct administration fees. Deductions for attorney, accountant, and preparer fees are limited on Schedule [more…]
Charitable Deductions for a Decedent, Estate, or Trust
An estate administrator can only give money from an estate or trust to charity if the decedent’s will (or the trust instrument) explicitly instructs it. Because this rule is absolute, charitable deductions [more…]
How to Inform Beneficiaries of the Right to Disclaim
Beneficiaries may elect to disclaim, or refuse, an interest in the decedent’s estate that they don’t want to accept. Often beneficiaries exercise their right to disclaim for tax reasons. With some disclaimers [more…]
How to Pay the Decedent's Debts and When to Declare Insolvency
Once a decedent’s estate is established, the executor’s next step is to identify and pay the decedent’s debts, administration expenses, and any claims against the estate. Identifying and paying these debts [more…]
How to Find the Estate Planning Documents
Locating estate planning documents is one of the estate administrator’s most important tasks. The decedent’s will, trust agreements and amendments, letters of intent, and any documentation on assets with [more…]
How Death Changes the Decedent’s Assets
Upon death, any assets owned by only by the decedent are frozen, or inaccessible, until an executor of his or her estate is named. Exceptions can be made if an estate is in urgent need of funds before [more…]
