Settling an Estate
©Money Magic, Inc. 2/17/01

 

I want to thank Dr. Boon-Nam Blackwell, a long time viewer of “Money Magic” of KATV’s Saturday Daybreak for sharing the following:

 

The Responsibility

If you’ve been named the executor, or personal representative for the estate of a friend or loved one, you may have questions about your specific responsibilities.  As a general rule, your responsibilities will include:

1.    Collecting, storing, and managing the estate assets.

2.    Notifying creditors and paying the estate assets

3.    Collecting any money owed the estate

4.    Filing claimed for pension and profit sharing plan benefits, social security benefits, and veteran’s benefits

5.    Maintaining detailed records of all estate transactions

6.    Distributing assets to beneficiaries

7.    Filing the decedent’s final federal income tax return

8.    Filing the estate’s income tax returns and

9.    Filing state and federal estate tax returns if necessary

A federal estate tax return must be filed within nine months of death if the gross estate plus taxable gifts exceeds $675,000 (2001).  About 80% of returns are accepted as filed, and the service center issues an estate tax closing letter within six to nine months.  Returns that are not accepted as files are sent to the IRS office in the state in which the decedent lived.  Closing letters are issued on their returns after the correct amount of tax has been determined.  The process can become quite lengthy if the estate is complex.

Think twice before naming someone as your estate representative.  Also think twice before accepting to be some one’s estate representative.