What Documents Are Needed After Someone Dies?

Posted on November 22, 2011 by TJ Wall

After someone dies, the surviving family members will need to gather up all of the decedent's important papers. This will give the family members and/or probate attorney who will be assisting with settling the decedent's final affairs all of the pertinent information needed to complete the settlement process. Here's the list of documents that will be needed to settle an estate or trust. Copies of the documents will work just fine unless otherwise noted.

Asset information
Copies or originals of the following documents will be needed:
• Account Statements - including bank, brokerage, and retirement accounts for at least the three months prior to death
• Life Insurance Policies - note that some insurance companies will require the return of the original insurance policy
• Beneficiary Designations - for life insurance, retirement accounts, and payable on death accounts
• Deeds for Real Estate - there's a common misconception that the original deed is needed, but a copy will work just fine
• Automobile and Boat Titles - the originals will be needed to transfer legal title
• Stock and Bond Certificates - for stocks or bonds held in certificate form, the original certificate will be needed to transfer legal title

Business Documents
If the decedent owned a business, then copies or originals of the following documents will be needed:
• Corporate, LLC or Partnership Documents - this includes copies of the corporate charter or articles of organization and minutes; a copy of the shareholder's agreement, operating agreement, or partnership agreement; and original stock or LLC certificates to transfer legal title
• Account Statements - including bank, brokerage, and retirement accounts for at least the three months prior to death
• Automobile and Boat Titles - the originals will be needed if legal title will be transferred
• Contracts - including leases, loans, and employment agreements
• Business Licenses - including local and state licenses
• Income Tax Returns - past three years

Contracts
Copies or originals of the following contracts will be needed:
• Prenuptial Agreements - including any amendments
• Postnuptial Agreements - including any amendments
• Loans - including personal loans, lines of credit, and mortgages, along with the original promissory notes
• Leases - including real estate and automobile leases

Bills
Copies of the following bills will be needed:
• Utility Bills
• Cell Phone Bills
• Credit Card Bills
• Mortgages and Personal Loans - including lines of credit
• Real Estate Tax Bills
• Storage Unit Bills
• Medical Bills
• Funeral Bill

Estate Planning Documents
If the decedent had an estate plan, then copies or originals of the following documents will be needed:
• Last Will and Testament and Any Codicils - the originals will be required because if the originals can't be found, then it's presumed the decedent destroyed them
• Revocable Living Trust and Any Amendments - strangely a copy of the trust or amendment is all that's usually needed

Tax Returns
Copies of the last three years of the following tax returns will be needed:
• Federal Income Tax Returns
• State Income Tax Returns
• Gift Tax Returns

Death Certificates
Multiple, original death certificates will be needed to settle the decedent's affairs. I tell my clients to order at least ten.

Tags: , ,

Who Gets Copies of the Will After a Person Dies?

Posted on July 4, 2011 by TJ Wall

Wishing you an Independence Day filled with pride in our country, and the companionship of family and friends!

Many movies and television shows have a scene where a family gathers around a big table after a relative has died to listen to the reading of the will. While this is a great dramatic scene, it doesn't usually happen like that in the real world. There is no requirement that a will be read out loud to anyone. So what does happen with the will?

Once the will is located, it should be given to the estate's attorney. Instead of reading the will out loud, the estate's attorney sends copies of the will to anyone who may have an interest in it.  Obviously the person who is named as executor or personal representative is entitled to a copy of the will. He or she is in charge of applying for probate, managing the decedent's property, and making sure the instructions in the will get carried out. (For more information on an executor's duties, click here.)

The estate attorney will also send a copy of the will to anyone who is named as a beneficiary. If any minor children or incapacitated individuals are named as beneficiaries, then their guardians should receive a copy of the will. In addition, if there is the possibility of a legal challenge to the will, the attorney may want to send a copy to any legal heirs, close family relatives, or previous beneficiaries who aren't included in the will, so that they have notice. This will limit the time frame for them to file a will contest. (For more information on will contests, click here.)

Another person who may be entitled to a copy of the will is the estate's accountant, and if the estate is taxable, then the IRS may get a copy of the will as well. If the will funds a revocable trust, then the successor trustee of the trust is entitled to a copy of the will. Note that once a will is probated, it is available to the public and anyone can read it. For more information on estate administration, click here.

Tags: , , , ,

What Is A Death Probate (And Why Would I Want To Avoid It!)?

Posted on September 15, 2009 by TJ Wall

A Death Probate is a legal proceeding ultimately controlled by the county probate court.  Probate procedures vary among the States.  Some are more complex than others.  Michigan allows for informal, as well as formal proceedings.  Despite these differences, the probate process consists of many steps and procedures that remain a mystery to most people.

For the most part, a Death Probate and the administration of an estate are comprised of six basic tasks: (1) admitting the decedent's will to probate court and determining its validity; (2) notifying the decedent's heirs and beneficiaries; (3) taking an inventory and appraising the decedent's assets; (4) paying any last known creditors; (5) ensuring that any necessary taxes have been paid; and (6) distributing the assets to the beneficiaries or heirs.

The probate process often can be expensive and time-consuming.  Studies indicate that the average cost of probate is anywhere between 6% and 12% of the value of the gross estate.  The gross estate is the full appraised value of the estate without any reduction for debts or expenses.  Some of the costs associated with probate are court filing fees, attorney fees, appraiser fees, inventory fees, bond premiums, and, perhaps the largest expense, asset preservation costs (real property taxes, insurance and maintenance) related to maintaining real estate and other assets while the court process is pending. 

The entire probate process can last from several months to several years.  The average length of a probate proceeding is between one and two years, although even the probate for a small, relatively uncomplicated estate sometimes lasts several years.  The probate process is also a matter of public record.  Anyone can access a decedent's probate file and discover very personal estate planning and financial information about the deceased person and his or her family.  If you don't believe me, just visit your local county probate court and request to view the file of a recently deceased family member or friend...it's that easy!  Often, unscrupulous individuals access these records and prey upon unsuspecting family members and heirs of the decedent.

If that's not enough, if the decedent owned real estate (another home, a parcel of vacant land, a timeshare interest, etc.) in another State, the family may be required to initiate an "ancillary" probate court proceeding in each one of those States, thereby compounding the time, costs and hassle of settling the estate.     

Proper estate planning can eliminate the Death Probate process.  It is all about preserving your hard-earned assets, saving tax dollars, professional fees and court costs, and keeping you in control of your own affairs.  While it certainly is "peace of mind" for you, ultimately, it is a blessing for your loved ones. 

 

Tags: , , , , , ,