When an individual dies, if he or she owns any assets, estate administration is necessary, which may or may not require any Probate Court filings. Estate administration is the process by which a decedent's assets are gathered together, his or her debts are paid, and the assets are distributed in accordance with the decedent's wishes.
Estate administration has many potential components, which may or may not be applicable to any specific estate. A decedent may have assets in his or her name, with or without beneficiaries designated. A decedent may have assets held in joint ownership with another. An individual may have assets in a trust. All of these assets must be handled differently in order to transfer them from the decedent to the intended beneficiary.
Often, an estate identification number must be obtained from the IRS. This is necessary if there is real estate that must be sold from the estate, if stock is involved, if an estate bank account must be established and if estate tax returns must be filed. Sometimes, a trust identification number must also be obtained from the IRS. Often tax releases must be obtained for financial institutions to release investments and accounts.
Sometimes, executors or administrators must be appointed by the court to administer assets of the decedent's estate. Sometimes, the assets are managed by the trustee of a trust. Occasionally, appraisers must be appointed to value assets and at times the estate must hire a realtor and/or accountant to assist in the asset liquidation and preparation of necessary tax returns.
The estate representative may have to establish an account to pay the decedent's debts and deposit liquid assets. The representative may have to sell real estate or stock or cash in bonds. He/She may have to determine the validity of creditor's claims. The representative may also have to bring legal action on behalf of the decedent or estate or defend the estate against claims.
It is critical to know all the time deadlines that must be adhered to. Will contests must be filed within (3) three months from the time all those individuals who have an interest in the estate have been notified. Creditors must present their claims to the estate within six (6) months of decedent's date of death or their claims will be waived forever. If estate taxes are owed, the estate tax returns must be filed and estate taxes paid within nine (9) months from the date of death. Unless extensions are requested and approved, inventories must be filed with the court within three (3) months from the estate representative's appointment and accounts must be filed within six (6) months from said appointment.
Some estates may be very simple to administer and some may be more complex. Each situation is different and very fact specific. It is always recommended, however, that you sit down and meet with a probate attorney who can walk you through all of the assets, all of the debts, the contents of the will and/or trust, and discuss how the assets are titled. Then you can be properly advised as to what steps are necessary to see that the decedent's debts are paid and that the remaining assets are passed on to the intended beneficiaries.
Attorney Joseph E. Balmer is one of only 20 area lawyers certified by The Ohio State Bar Association as a specialist in estate planning, trusts and probate administration. Click here to read his biography page. Please don't hesitate to call us at (937) 293-2141 or email us by clicking here if you want to discuss any estate planning or administration issues. Additionally, we have an emergency phone number, (937) 760-4357, that is answered by one of our lawyers around-the-clock
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