Free Estate Administration Worksheet

Original copies of the Decedent's death certificates are needed for many purposes in handling an estate. One copy is needed just for the useful information that it contains, including the Decedent's full name, address, social security number, birth date, and date of death. Copies are needed for life insurance companies and for retirement plan administrators. Death certificates can be obtained from the funeral service provider or directly from the appropriate local government office. At least several copies should be obtained.

The Decedent's debts will need to be paid. If the Decedent does not have sufficient assets to pay the debts in full, it may be necessary to use the state's probate system to address the non-payment of such items. In some cases, with the help of an attorney, it may be possible to make satisfactory arrangements with the creditors without using formal probate.

Include mortgages, deed of trust obligations, home equity loans, consumer loans, education loans, credit card balances, and other loans. It will be important to contact lenders to find out how much was owed as of the date of death. Including contact information is very important.

The Decedent likely had at least a few routine monthly expenses. These expenses, may include utility bills, telephone, rent, and other housing or living costs. In addition, the Decedent may have had unpaid medical expenses, funeral costs, and other expenses. These items will need to be paid or otherwise resolved with the creditors.

Be sensitive to insurance bills that are unpaid at the time of death or that are received after the date of death. For the protection of the Decedent's assets, it is usually important to keep such policies paid up and in force for some period of time after the death.

When looking through the Decedent's financial records and correspondence, be sensitive to information that will help in contacting the Decedent's legal and financial advisors. Names, addresses, phone numbers, e-mail addresses, and other contact information for these advisors can be very helpful. Such advisors may include:

• Attorneys
  
• Accountants and tax return preparers
  
• Financial planners
  
• Investment brokers
  
• Insurance agents
  
• Bankers
  
• Employer benefits officer

Personal information about the Decedent will be needed. Often, the key information can be found on the death certificate. In particular, the Decedent's marital status is very important. A surviving spouse is often the primary beneficiary under the Decedent's will or trust arrangements, and often is the primary beneficiary of life insurance and retirement plan benefits. In addition, a surviving spouse usually has specific rights under applicable state law.

Information about the Decedent's current employer (or past employer if the Decedent is retired) can lead to the discovery of additional assets and benefits. There may be unpaid wages, holiday pay, or other wages to collect. In addition, there may be life insurance, retirement plan benefits, and medical benefits to collect. Frequently, employers will have a designated person or department who can help with forms and information.

When someone dies (referred to as a "Decedent"), the Decedent's surviving family members and/or friends need to gather up the Decedent's assets, pay any debts and expenses, and distribute the Decedent's remaining property to the proper beneficiaries. In many cases, tax issues will need to be addressed. Different procedures will be required, depending on the type of assets that the Decedent owned, the specific details of the Decedent's estate plan, and the circumstances that exist at the time of death.

The Estate Administration Worksheet provides an outline of the general procedures that must be followed in handling an estate where the Decedent's primary estate planning document is the Decedent's Will. The initial portion of the Worksheet provides explanations and anticipates that the you will enter information as you are lead through a series of questions. The Worksheet can then be printed out to be used as a general guide. Additional information as it becomes available can be written onto the paper copy, you can update the worksheet, or you can export the worksheet to a word processor to customize the worksheet to better fit the user's particular circumstances.

This Worksheet helps to organize the Decedent's personal, legal, and financial information for the benefit of the persons who will be responsible for handling the estate, often a close family member and a lawyer. The family member is often appointed as the "Executor", "Administrator", or "Personal Representative" in accordance with formal probate proceedings. This Worksheet generally uses the familiar term "Executor."

This Worksheet recognizes that handling an estate requires an understanding of the estate administration laws of the state where the estate will be handled. While the procedures of most states are similar to the procedures in other states, there can be important distinctions. Further, handling an estate requires an understanding of federal and state estate and inheritance tax laws and federal and state income tax laws. The process can be intimidating, almost always requiring the assistance of an attorney and/or tax professional. However, this Worksheet helps take some of the mystery out of the process and helps the user understand what will be expected.

Information will be needed about family members and the beneficiaries under the Decedent's Will. Spouses and children usually have specific rights under state law with respect to the Decedent's estate, in addition to being beneficiaries under the Will.

If there are minor children and the Decedent's spouse is not living, the Decedent may have provided for a trust for the children. It may be necessary to appoint a guardian for children who are not yet 18 years old. If so, the Will should state who should be the guardian.

It is important to know whether all of the Decedent's children are also the children of the Decedent's spouse. If this is not the case, the children and the spouse may each have separate rights under applicable state law. Further, they may have competing interests in distributions from the Decedent's estate. Therefore, it is important to have clear details regarding children of the Decedent.

In many estates, the only beneficiaries are the spouse and children. However, in other cases other family members, friends, and charitable organizations will be named as beneficiaries.

Heirs are persons who would be entitled to distributions from the estate if the Decedent did not have a Will (or other estate planning documents) to distribute the Decedent's property. All states have laws that define who "heirs" are. Usually, these definitions include spouses and children as first priorities. However, if a child has died before the Decedent, and if the child had living children (the Decedent's grandchildren), such grandchildren would also be heirs of the Decedent. For estates where the Decedent did not have descendants or a spouse, parents and siblings of the Decedent are usually the heirs.

In many cases, the heirs are the same as the beneficiaries under the Will. However, in other cases heirs are not named in such documents as beneficiaries. For example, a child or grandchild may be omitted intentionally.

When completing this section, include information regarding all beneficiaries named in the Will and other documents. If a beneficiary is not living, include information regarding that beneficiary's children/heirs. If you are in doubt, it is a good idea to prepare a family tree for use by a lawyer or other advisor who will be helping with the estate.

It is important to obtain contact information regarding the persons who will be responsible for handling the Decedent's estate. Initially, names, phone numbers, and addresses are the most important items of information. In some cases, it may also be necessary to obtain social security numbers or other identification numbers. The list of responsible people can be short (e.g., one or two people), or it may include five or six parties (including trust departments) in more complex situations. The names of such people can be found in the Wills and other estate planning documents and can include:

• Executors (or Personal Representatives)
  
• Trustees
  
• Guardians (for minor children)

Information regarding government and employment benefits can be important for several reasons. In some cases, notification of the Decedent's death must be provided because benefits terminate as of the date of death. The temptation to "forget" to provide notification in hopes of receiving extra benefits should be overcome by a desire to avoid the inevitable hassle that accompanies making repayments. In other cases, there may be benefits payable to survivors that can only be obtained by providing information regarding the Decedent's death. Usually an application must be completed and filed, accompanied by a death certificate.

Determine whether the Decedent was receiving any government benefits, and whether the Decedent's survivors are entitled to any continuing benefits. Such benefits may include social security benefits, veteran's benefits, and railroad retirement benefits.

Determine whether the Decedent was entitled to any unpaid employee benefits, including accrued salary, accrued vacation pay, accumulated sick pay, group life insurance, workers compensation benefits, company death benefits, retirement plan benefits, deferred compensation benefits, and stock options.

Income tax returns often include information that helps identify or confirm assets owned by the Decedent, particularly investment assets. For example, a tax return may include a listing of interest income that helps locate a certificate of deposit with a bank where the Decedent had no other accounts. Or, the tax return may disclose important pension benefits that are being paid. Therefore, it is helpful to obtain copies of at least the federal and state (if applicable) income tax returns for the most recent year.

In addition, if the Decedent did not file income tax returns for the most recent year (or worse, for several prior years), that task will probably need to be done. In some cases, a federal tax return may not be required because the Decedent's income was too low. However, that decision should be made only after carefully reviewing all of the assets and income of the Decedent with a tax advisor. In a few states, there is no income tax filing requirement.

Include the date of death values of the Decedent's stocks, stock options, bonds, mutual funds, and other investments. For accounts with brokerage firms, use the balances from the most recent statements, or obtain more accurate balances through direct contact (e.g., phone or internet access) with the brokerage firm that maintains the applicable account. For stocks, bonds, and other securities that are held directly in the Decedent's name, you may be able to obtain price quotes from a newspaper or internet source.

For many estates, the life insurance consists of one or more policies owned by the Decedent and which insure the Decedent's life. The Decedent may also have life insurance through an employer group policy. Often veterans of the U.S. military have at least a small life insurance policy through the Veterans Administration.

Life insurance proceeds are distributed in accordance with a beneficiary designation completed by the owner of the policy. Therefore, it is important to know who was designated. This information can usually be obtained by reviewing information that accompanies the policy. It can also be obtained from the life insurance company.

Application forms will need to be obtained, usually by contacting the Decedent's insurance agent or the life insurance company. The forms must then be completed and filed with the insurance company to obtain the insurance proceeds. In most cases, an original copy of the death certificate must be submitted with the application.

Occasionally, the Decedent will have set up a life insurance trust that owns insurance on the Decedent's life. In such cases, it is important to contact the trustee of the life insurance trust.

It is also possible the Decedent owned life insurance policies that insured someone other than the Decedent. Such policies may have value that must be included in the Decedent's estate for estate tax purposes.

Include information regarding other property that was owned by the Decedent. You can include summary information by categories with your best estimate as to values. Update the values as more accurate information becomes available. Other property could include the following:

• Notes receivable and accounts receivable. Amounts owed to the Decedent by family members or third parties.

• Business Interests. The Decedent may have owned a small business, rental property, a farm, a medical practice, or another business. Obtain copies of financial statements, tax returns and other business records for any business that the Decedent owned, whether owned totally or only in part. The expertise of a business appraiser or accounting firm may be needed to determine the value.

• Wrongful Death Claim. If the Decedent died because of the negligence or wrongful act of any other party, investigate whether a claim should be pursued against such party. An attorney's expertise may be needed in valuing and pursuing such a claim.

• Unexercised Powers. Determine whether the Decedent had any rights under any trusts, general powers of appointment, or other documents to direct that assets be paid to him/herself or others under a formal trust or other document. Although most decedents do not hold such powers, this determination should be made.

Include the value of vehicles, jewelry, household furnishings, and personal effects. Use the value that could be obtained if such items were sold. Sometimes the only reasonable value is your best guess as to what the items would bring at a garage sale, an amount that might be considerably less than the cost of replacing such items. A reasonable estimate is acceptable until more accurate information becomes available.

Obtain information about prior marriages, if any, that ended because of a divorce, annulment, or death of the spouse. For example, a divorce decree might require payments for child support or alimony as obligations of the estate. The decree might include information regarding entitlement to life insurance proceeds or retirement plan benefits.

The information should include the names of any former spouses of the Decedent, and copies of related documents (for example, a divorce decree or a death certificate). If the Decedent had any financial obligations under a divorce decree for a former spouse and/or children, it may be important to obtain contact information for the former spouse.

Perhaps the most familiar term in handling estates is the term "probate." Probate is the court administered process of carrying out the terms of a Decedent's Will. Although the probate process varies from state to state, in general, probate is the set of state law procedures that an executor / personal representative must follow in gathering the Decedent's assets, paying the necessary debts ad expenses, and distributing the remaining assets to the heirs and beneficiaries.

Upon death, the original copy of the Decedent's Will must be located and delivered to the appropriate court in the Decedent's state that handles probate administration. Generally, the Will must be accompanied by a petition to the court that includes information about the Decedent, the Decedent's death, and the Will. As part of this process, the court appoints the executor (personal representative). Opportunity is given to "challenge" the Will if there are concerns that the Will may not be the proper Will of the Decedent.

It is important to be sure that the insurance coverages are maintained and that refunds of premiums are obtained, if appropriate. For example, if the Decedent owned real estate and/or vehicles, the executor / personal representative should make sure that both property and liability insurance exists and continues in force. If the Decedent was paying for health insurance or long term care insurance, you should be able to obtain a refund of the "unused" portion of the premium.

Ownership of real estate is particularly important. It can be owned "jointly with rights of survivorship" which means that the surviving joint tenant(s) become the owners when one joint owner dies. You can also own property jointly as "tenants in common" which means that the part owned by a joint owner who dies does not automatically become the property of the other joint owners. Instead, it usually is distributed in accordance with the deceased owner's will. Some states have "community property" laws which have special rules that apply when an owner dies.

It is important to obtain accurate information regarding the real estate. A safe deposit box may have important real estate documents including a deed, abstract, or title insurance policy. Estimates of value can be updated later as more accurate information becomes available.

In addition to the Decedent's Will, there may be other estate planning documents. The Decedent's personal papers should provide some indication as to where copies of related estate planning documents can be found. Often copies are kept in safe deposit boxes or with the Decedent's lawyer. These copies will be needed. Estate planning documents may include the following:

• Will (including codicils)
  
• Life insurance trust
  
• Charitable trust
  
• Other trust
  
• Written list explaining who should receive personal property (e.g., jewelry)
  
• Gift tax returns

• The marriage occurred later in the Decedent's life;
  
• The Decedent had children from a prior marriage; or
  
• The Decedent had significant wealth before entering into the marriage.

Many Decedents own IRA accounts, 401k accounts, and other retirement plan accounts. Proceeds and benefits from retirement plan accounts are distributed in accordance with a beneficiary designation completed by the owner of the accounts. Therefore, it is important to know who was designated. This information can usually be obtained by reviewing information that accompanies the accounts. It can also be obtained from the employer or other institution who administers the account.

Application forms will need to be obtained, usually by contacting the employer or the institution that handles the account. The forms must then be completed and filed with the employer or institution to obtain the retirement proceeds. In most cases an original copy of the death certificate must be submitted with the application.

Safe deposit boxes often include very important information including copies of wills, trusts, and other estate planning documents, life insurance policies, other insurance policies, real estate records, jewelry, coin collections, stock certificates and bonds, birth certificates, marriage certificates, photos, and military records.

Find out if the Decedent rented a safe deposit box, and if so, obtain the location, box number, and location of keys. The most likely location of a safe deposit box is the financial institution where the Decedent maintains his/her primary checking account. A desk, file, or home safe where papers and records are kept may contain a safe deposit key or other written record that shows where the safe deposit box is located.

Include information regarding U.S. savings bonds. Tables can be obtained from banks and internet sources to determine the values as of the Decedent's date of death.

The Estate Administration Worksheet is not a formal legal document and does not require any signature, witnesses, or notarization.

Handling an estate requires an understanding of the estate administration laws of the state where the estate will be handled. It also requires an understanding of federal and state estate and inheritance tax laws and federal and state income tax laws. Documents must be filed with the court system. Deadlines must be met. The process can be intimidating, almost always requiring the assistance of an attorney and/or tax professional.

In all but the rare case, the services of an attorney should be obtained. Several important guidelines should be considered in choosing an attorney and in deciding how much help is needed. First, select an attorney who routinely handles estates. This may be the attorney who prepared the Decedent's Will (and maybe not). Bank officers, tax return preparers, financial planners, and life insurance agents are usually familiar with local attorneys who practice in this area of the law.

Second, during an initial meeting with the attorney, ask the attorney to explain the expected procedures, the timetable for completing the estate administration, and the attorney's fees. Ask the attorney to provide services on an hourly basis at an agreed upon hourly rate. Ask for an estimate of the total fees. If the attorney is really an expert in this area of the law, the attorney will be able to clearly explain this to you. Third, ask the attorney what steps you can do yourself to save fees. Be reasonable. Don't try to take on steps that the attorney will later end up re-doing. For example, keep good records of the estate's income and expenses, but don't expect that you can magically become an expert at completing a federal estate tax return.

To get the best deal, you must be prepared, and you must show the attorney that you are prepared. When you call the attorney to make the appointment, ask the attorney what to bring along, and then come prepared. Providing answers (even "best guess" answers) to just 50 percent of the questions asked in this Worksheet will make you better prepared than 95 percent of the clients who don't use this Worksheet.

List each vehicle owned by the Decedent and obtain copies of vehicle titles and registrations which will show the named owners and the manner in which title is held. Obtain date-of-death retail values for each vehicle from a dealer or a recently-published "blue book" that lists vehicle values. Or a reasonable estimate can be obtained by checking the prices of comparable vehicles listed for sale in the local newspaper. Estimates are acceptable until more accurate information becomes available.