Many decedents are entitled to benefits from their current or prior employers under pension or profit-sharing plans or under group life insurance policies. In fact, for most individuals, the greater part of their wealth is evidenced by benefits payable under employee benefit plans. Employee benefits payable to a named beneficiary generally pass outside of the deceased employee's probate estate, unless the estate itself is designated as the beneficiary. In order for the beneficiary to collect the benefits, it is generally sufficient to merely advise the plan administrator of the employee's death. In some cases, proof of death, usually a death certificate, is required. If the majority of the decedent's assets were in pension and profit-sharing plans or life insurance and joint tenancy assets (with survivorship rights), it may be possible to completely avoid the probate process. Consult a lawyer to ensure that appropriate title transfers are completed. However, compensation plans, private annuity contracts and deferred compensation agreements are typically includable in the decedent's gross estate for death tax purposes. Thus, it may be necessary to file death tax returns even if the assets are not subject to probate. A lawyer should be consulted about the necessity of filing death tax returns. |