 |
Estate Administration
Probate & Non-Probate Assets
Payment of the Decedent’s Debts
Death Certificates
Probate Court Costs
Attorney / Executor Fees
Role of the Executor
Estate Tax
Income Tax – Estate
Income Tax – Beneficiaries
|
|
| |
 |
|
|
When the factors surrounding an estate are analyzed, it is necessary to consider all of the factors, not just one or two. Depending on the circumstances, different factors carry more weight in the decision making process. For instance, if federal estate taxes are due at 45%, this becomes the most important factor and requires the most planning. If no federal estate taxes will be due, probate avoidance, Medicaid planning, or income tax (step up in basis) may be the most important factor for consideration. It is often a juggling act and all factors need to be taken into consideration. Planning is necessary for the current needs and the future needs that might occur.
|
|
|
To learn more about
Handling An Estate
Contact Us to Schedule a Visit
|
|
The purpose of this section is to address common questions about estate administration. It is not imperative that you understand all of the technicalities, but I hope to provide you with a general knowledge of estates.
Estate Administration
In general terms, the process of handling an estate involves identifying a decedent's probate and non-probate assets, filing federal and Ohio estate taxes if necessary, and seeing to the distribution of probate assets.
Probate & Non-Probate Assets
Probate assets are those assets held in the decedent’s individual name only, with no beneficiary designation, and not held as joint tenants with rights of survivorship. Non-probate assets have beneficiary designations or are held as joint tenants with rights of survivorship.
Payment of the Decedent’s Debts
Debts are usually paid from the decedent’s probate assets. Creditors have six months from the date of death to present claims against an estate.
Death Certificates
A Death Certificate is necessary for each asset owned by a decedent that lists a beneficiary or is held as joint tenants with rights of survivorship.
Probate Court Costs
$225 is the Hamilton County, Ohio Probate Court cost, even for a $50 billion estate.
Attorney / Executor Fees
Attorneys customarily charge either based on a percentage of assets or on a project/hourly basis. Executors can charge a fee based on a percentage of the assets.
Role of the Executor
The most important action an executor takes is hiring a lawyer to handle the estate.
Estate Tax
At the death of the decedent, there may be Federal and/or Ohio estate taxes due.
Income Tax – Estate
The decedent’s executor may need to file Form 1041 for the estate, which includes income generated by the probate assets. Generally, income is interest, dividends, and capital gains/losses from the sale of probate assets.
Income Tax – Beneficiaries
Distribution amounts received by inheritance are generally non-taxable for income tax purposes. Exceptions include IRAs, annuities, savings bond interest, or any asset carrying tax-deferred income.
|
|
