Probate

Someone needs to qualify as the executor, if there is a will, or as administrator, if there is no will. Who should qualify should be discussed, and it is important to confirm that a formal probate is necessary. The Probate Office with jurisdiction over the estate can be helpful in figuring this out.

Make an appointment with the probate office  of the local Circuit Court. Check the local Circuit Court website for instructions on what to bring with you to the appointment. At a minimum, you will need an original death certificate, name and address of heirs at law and under the terms of any will, original will and codicil of the will, and a photo identification.

You need to give certain notices to beneficiaries or potential beneficiaries of the estate, and then report this to the Probate Office.

You need to file an Inventory with the local Commissioner of Accounts serving the Probate Office where you were qualified.

You have a host of tasks at this point, all focused on collecting or marshaling the assets of the decedent, identifying his debts and liabilities, filing final personal income tax returns, obtaining an FEIN, forwarding the mail, and much more.

You have to file an accounting with the Commissioner of Accounts to report all money received,  expenses paid, payments to beneficiaries, and document all of the foregoing, and then report the assets on hand and document the assets reported.  This is not complicated in and of itself, but what needs to be done is not necessarily “intuitive”.

All tax returns, both personal and fiduciary, need to filed, and tax clearances should be sought for both the decedent AND the estate. Some considerations include selection of the tax year for the estate, filing a Notice of Fiduciary Relationship with the IRS, and applying to the tax authorities to confirm all tax returns have been filed and whether there are any unpaid taxes.

Some hearings before the Commissioner of Accounts, and in the Circuit Court, may be necessary along the way as you work to confirm all of the debts and liabilities.

The Executor must proceed carefully at this stage, as there are steps that need to be considered and in many cases taken, including having the Commissioner  of Accounts hold a Debts and Demand Hearing, having the court enter a Show Cause Order and subsequently an Order of Distribution, obtaining tax clearances from the various tax authorities, making final distributions to the beneficiaries and procuring appropriate documentation from them to protect yourself , and filing with and obtaining approval of the final account by the Commissioner.