If you fail to open a probate estate, you could be liable for taxes and other claims. Even if you do not think a probate estate is necessary, it is important to discuss your options with an experienced estate attorney.
Call Arizona Estate Attorney Dave Weed at (480)426-8359 to discuss your case today.
If the assets in the estate are less than the debts and tax obligations, those debts do not become the responsibility of the loved ones left behind. Unfortunately, many people do not understand this, and they end up paying off debts for which they have no financial or legal responsibility.
The days and weeks following the death of a loved one can seem like a blur. The grieving process is difficult enough, but there will also be a funeral to plan, relatives to notify and financial issues to handle . Meeting with an estate attorney as soon as possible can ease your burden and make a difficult time easier to bear.
The best way to protect the assets is to open the estate right away.
If you are unsure about the tax situation, you should contact the person who handled returns for the deceased. They should have copies of past tax returns, and they should be up to speed on any outstanding audits, tax debts or other issues. The days and weeks following the death of a loved one can seem like a blur.
There is a great deal of confusion about how debts are handled when an individual dies. Some people think that these debts simply disappear when the debtor dies, but that is not always the case. While some debts are forgiven on death, others follow the deceased and become part of the estate. The good news is that the family members ...
Duties for a Co-Executor of a Will. How to Ask the Executor for a Copy of the Will. An executor is the person who oversees the estate of a person who died with a will . A myriad of duties are handled by the executor, including the transfer of inheritances to the heirs, the disposal of estate assets and the payment of final bills.
The exact procedures for probate vary by area, but probate courts generally require the executor prepare and submit an inventory list that includes the deceased person's assets and personal belongings, and submit signed releases from each heir for estate distributions and proof of the transfer or sale of assets, as well as the purchase price.
Valid reasons to challenge an appointment or ask for the revocation of the executor's powers generally relate to the executor's actions and qualifications. An executor who is seriously ill or medically incompetent may not be qualified to handle the responsibility. The heirs have the right to ask for the removal of an executor who is committing ...
An executor who mishandles the estate may be personally liable for damages to the heirs. Anna Assad began writing professionally in 1999 and has published several legal articles for various websites. She has an extensive real estate and criminal legal background.
A deceased person who left her total estate in equal shares to two heirs, for example, may have real estate or other valuable personal items. The executor can sell the real estate or items and divide the proceeds between the heirs, or make arrangements with an heir who is interested in buying the property or belo nging.
Should the heir decide to give the ring to another relative, the executor is not liable as long as he has a signed release from the heir stating she received the ring. A will that does not have specific bequests leaves the executor with some decisions to make.
The heirs have the right to view the will and the financial documentation for the estate, including inventory and current creditor claims. Some states require automatic disclosure to heirs of each action the executor takes, while other states allow heirs to file a form in court that asks for notification of the executor's activities ...
When building an estate plan, you may have a variety of concerns, including the following: Maintaining an orderly administration of assets while you are living. Ensuring that your heirs and loved ones receive your assets. Helping to reduce or avoid conflicts and confusion.
When building an estate plan, you may have a variety of concerns, including the following: 1 Maintaining an orderly administration of assets while you are living 2 Managing estate assets flexibly while you are living 3 Reviewing estates involving tenants in common or community property 4 Considering assets in multiple states 5 Examining small business assets 6 Naming your children’s legal guardian 7 Ensuring that your heirs and loved ones receive your assets 8 Helping to reduce or avoid conflicts and confusion 9 Minimizing legal expenses and taxes 10 Assessing wealth preservation
Estate attorneys should help clients fiscally prepare for the possibility of disability or dementia by drawing up powers of attorney , healthcare directives, and living wills .
It's important to have a solid estate plan in place to ensure that your loved ones receive your assets without a hassle or undue delay after your death. There are many questions you should ask prospective estate-planning attorneys before hiring one to craft your estate plan. Above all, make sure you hire an attorney who demonstrates ...
Overall, it forces individuals to contemplate fiscal matters that will occur while they are living and after their own deaths. It's thus extremely important to make sure assets are managed prudently and that next generational family members will receive inheritances, without incident.
While an estate attorney's expertise may overlap with these fields, they may not be a general tax expert or investment advisor. Give yourself enough time to gain a broader, big-picture perspective on your estate plan and the logistical practicalities of implementing it.
Although any lawyer can draw up a simple will for straightforward situations, such as naming the beneficiary of one's 401 (k), seasoned trust-and-estate lawyers can help navigate more complicated situations involving several trusts and multiple heirs. 1:21.
Revocable living trusts are often used as a way to avoid probate. You establish a revocable trust while you are living to manage your assets. Your lawyer drafts the document for you and then you retitle most of your assets in the name of the trust. You can use the income, or principal if needed, from the trust during your lifetime to meet your needs. If you later change your mind, the trust can easily be amended to accommodate changes. You typically appoint yourself as trustee, but you can appoint a trusted friend, professional advisor or bank trust department as your trustee.
durable power of attorney is considered a staple of any solid estate plan. This document allows you to name someone else to make financial decisions for you, such as paying bills or selling your car, should you become incapacitated and unable to make them yourself. It ends upon your death.
The executor's job is to manage and protect the property until it is ultimately distributed to you. A person who thinks otherwise should not have accepted the role of executor in the first place.
If the probate court finds the executor has wasted assets or distributed assets improperly, the executor can be held personally liable to reimburse the beneficiaries. Remember, the purpose of having an executor or administrator assigned to an estate is to make sure the estate is managed properly — without unreasonable waste — ...
If your loved one named you as a beneficiary of a trust or estate, it means he or she thought about your future and your well-being during the estate planning process.
A person who thinks otherwise should not have accepted the role of executor in the first place. This means you are entitled to any and all information related to property left to you, even if it is a portion of joint property, to include an accounting, appraisal if applicable and proof of insurance.
As a beneficiary, you can ask for this kind of information by sending a letter to the executor. If he or she fails to respond or the response in insufficient, you can ask the probate court to make the executor respond correctly and transparently.
Beneficiaries do have rights, but they also bear the burden of holding the executor accountable when questions arise. If you are the beneficiary of an estate or trust and have questions regarding your rights, contact us to discuss your situation.
There are essentially two ways to get help from a lawyer when you're an executor: You can turn a probate case over a lawyer, or you can take on primary responsibility for handling the probate yourself and consult a lawyer only when you have questions or need limited help.
The conventional way to handle a probate is to turn it over to a local lawyer who's experienced with this area of the law. You can't exactly sit back and relax—it's still your responsibility to gather and safeguard assets, pay bills, and take inventory, just for starters. But you may feel better knowing that an expert is handling all the court-related tasks, which in a probate usually means preparing and filing paperwork. (Unless there's a dispute, which is rare, there won't be any adversary proceedings in the courtroom.)
The lawyer can give you a list of important dates— for example, when is the cutoff for creditors to submit formal claims, and when will the final probate court hearing be held. Talk to a Lawyer.
Wrapping up an estate always involves sorting through the deceased person's papers—lots of them—and making phone calls to various agencies and institutions—lots of them. You can take on a lot of this work yourself; a lawyer is not required.
Estate planning is the process of anticipating and arranging for the management and disposal of your estate during your life, as well as at and after death, while minimizing gift, estate, generation skipping, and income tax. A will is part of the estate plan.
Estate planning can be behavior-shaping—family values can be preserved and younger generations can be motivated to pursue the right goals. This is very important for business owners, especially when some children will take over the family business, and some will not. Helps prepare family for uncertainties.
Except for the assets that will be passed by beneficiary designation or operation of law, your state’s probate laws will determine the distribution of estate assets if you do not have a will. Please keep in mind that many states have different rules related to the distribution of a deceased’s assets when no will is presented for probate.
A trust is a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. Trusts can help wealthy families minimize the estate tax, but don’t let this reason blind you from the many other benefits a trust can provide.
That is because currently, any amount in excess of the annual exclusion can be shielded by a lifetime exemption (also called unified credit). Gifting is a powerful way for wealthy family members to reduce the tax burden, but not so much for the families with moderate estates.
Establishing a trust is especially important if a child has a disability. Generally speaking, a trust is not a relevant tool for a family with few assets. Families who don’t own real estate property and whose net worth is less than $100,000 may not find a trust worthy.
Property is transferred at death in several ways: Valid will – A legal document created to express how a person desires his or her property to be distributed at death. It also names one or more persons to manage the estate through its final distribution. (Also see question 2)
If a will exists, then the original will and death certificate also need to be filed in court.
The role of a probate attorney includes, but is not limited to, settling disputes, the sale of the estate property, and distributing the assets of the deceased among the beneficiaries. So, you’ve made the decision to hire a probate attorney, but have you considered the necessary questions to ask?
The term probate refers to various steps such as the verification process, the court where the issue is handled, and the distribution of the deceased’s assets.
The probate process can vary in length of time, but generally, completion can take a few months to a year (or more). The main determining factors on this duration includes the number and type of assets and the state’s legal requirements.
In most cases, the probate process is fairly straight forward. Especially if you have the help of a professional. But sometimes there can be a few issues that occur. One example is if family members challenge the validity of the will. These unforeseen instances are where a probate attorney can be especially helpful.
A yearly accounting must be filed each year that the estate is open. A final accounting must be filed when the estate is closed. The administrator must continue to ask for court approval on all major transactions until the estate is closed.
If the person dies leaving behind a will, it is the process of “proving up” that will and transferring the person’s assets to his or her living heirs. This is the most common type of probate.
After the hearing, the executor receives the Letter of Testamentary granting authority to act on behalf of the deceased. This document can be taken to banks and financial institutions, stockbrokers, title offices, etc. who will follow the executor instructions to transfer assets.
The term “dependent” refers to the administrator’s need to get the court’s approval for the transactions that are a normal part of the probate process , such as the sales of real estate or personal property.
The court may also appoint the appraisers who will determine the value of the deceased’s property to prevent the stealing of estate assets or the cheating of heirs.
A full estate plan involves a list of specific instructions as to whomever you want to be in charge of administering your estate, how you want things managed, and how you want your assets distributed. The plan can include a Declaration of Trust (describing your assets like property, savings, stocks, bonds, retirement accounts, etc.).
Estate planning is the process of making the necessary decisions to put a person’s (or a couple’s) affairs in order and to state your wishes on what should happen with your assets and property should you pass away or become incapacitated.