1. Chapter 9 Administration of the Estate

2. Initial Responsibilities Arrangements for the Funeral Notifying Relatives and Close Friends Protect and Preserve Assets (temporarily) Responsibility for Business Activity (if deceased was the owner of a business)

3. Probating the Will Probate is the Act of Proving the Will …. Involves all matters in which the probate court has jurisdiction over. Signature must be verified ….. what is a self-proving Will? Executor must present the Will for Probate. Distinguish between Probate and NonProbate Assets.

4. Advantages / Disadvantages of Probate Will is validated (by courts) Executor is supervised There is a dispute mechanism Proof of legal title to real estate is established Time frame is set up for creditors Charitable bequests gets public recognition No privacy Time consuming Inflexibility / legal process Probate costs Fees AdvantagesDisadvantages

5. Avoiding Probate Joint Tenancy / Tenancy by the Entirety Property passing by Contract Life Insurance IRA’s ….. Pension ….. 401(k) Savings Bonds Toten Trusts Deed …… with Living Trust …..let’s discuss how this works. Deminimis Rules for Small Estates Ancilliary Probate ….. Property located in other states

6. Appointment of Executor Should be Named in the LW&T …. despite being named in the Will, the Probate Court must officially appoint. Must be competent and Age 18 Bonds must be posted (unless the LW&T waives the need). What does a Bond do? Testamentary Letters are issued Public Notice published in newspaper to notify creditors or debtors of the deceased.

7. Notice – The Herald NOTICE TO CREDITORS All persons having claims against the following estates are required to deliver or mail their claims to the indicated Personal Representatives (PR), appointed to administer these estates, AND to file their claims on form #371PC with the Probate Court for York County at PO Box 219, York, South Carolina, 29745, on or before the date that is eight months after the date of the first publication of this Notice to Creditors or such persons shall be forever barred as to their claims. All claims are required to be presented in written statements, indicating the name and the address of the claimant, the basis of the claim, the amount claimed, the date when the claim will become due, the nature of any uncertainty as to the amount claimed and the date when due, and a description of any security as to the claim. Estate: Helen M. Van Every Case Number: 2007ES4600063 Personal Representative: Angela V. Johnston Address: 370 Stonemarker Rd., Mooresville, NC Attorney: Robert H. Breakfield Address: PO Box

8. Gathering the Property / Assets Prepare an inventory of all property Take possession …. make appropriate transfers Manage and safeguard the property during the probate period. Bring organization to disorganization Safe Deposit Box – problem with access Where is the best place to keep a LW&T?? Find Life Insurance Policies

9. Managing the Estate Set up an “estate” bank account …. maximize interest income Begin to value all assets on the date of death ….. get appraisals, investment statements, balances Hire advisors …… attorney is a must. Accountant unless you are qualified or the estate is relatively simple. Determine a gameplan for the liquidation of assets Manage a closely held business

11. Payment of Debts / Claims Establish / Inventory of Claims / Debts Ordering of payments Secured liens on property (mortgages) Funeral Expenses Taxes …. Property, income, estate Debts owed to the Government (federal & state) Court judgments (child support??) Wages due domestic employees Medical expenses All other debts and claims (credit card bills, personal loans)

12. Tax Returns Final Individual Tax Return (short year) Trust Return …. Income in Respect of a Decedent ….. As long as the estate is “open” Any Gift Tax Returns …… (Form 709) Estate Tax Return ….. (Form 706) …. Due 9 months following death. State Inheritance Return Property Taxes

13. Apportionment of Estate Taxes Is the estate tax paid out of the RESIDUAL or is it allocated among the beneficiaries?

14. Distributing the Estate Prepare an Accounting ….. Filed with the courts …. Public record. Interested parties can Objection …. Courts can settle disbutes. Obtain releases and receipts from beneficiaries.

15. Disclaimers A way to release an inheritance so that it goes to other beneficiaries in greater need. May not be prudent to add to an already taxable estate. Details: Unqualified refusal to accept the bequest Refusal must be in writing Must be received by executor w/in 9 months of death (or 9 months after beneficiary turns 21) Cannot receive any interest in the property Beneficiary (disclaimant) cannot direct the property