The most important thing you can do is have a well drafted Will or Trust. In the law of estates and trusts there are many words that have specialized meaning. Even some attorneys misunderstand some of the terms and procedures. Kentucky law does not generally certify specialties of legal practice but an attorney who spends his career handling personal injury cases might not be the best person to write your Will. You don’t want your estate in a wreck, now do you? As for writing your Will yourself, it is possible to do that under the law of Kentucky. If you fix your own TV set and your own plumbing and deliver your own children on the side then you may be able to write your own Will without any major mistakes. On the other hand, the many hours you will spend at the law library learning estate, tax and probate law might be more valuable than the few hundred dollars you’ll spend on even the most complex Will.

There are a number of things you can do in a Will or Trust to reduce costs and prevent problems and disputes. If the family beneficiaries are prone to argument, fights, manipulation or overreaching, then perhaps it would better to choose an executor or trustee from outside the family. When you plan on deviating from the “expected” plan of distribution, even if you choose not to disclose your plan, you should carefully document your intentions, reasons and competence. Also, there are “no contest” clauses that can be included. Nothing can guarantee that there won’t be a fight, but with a little care, your plan can be pretty tough to break.

A Fiduciary refers to an individual acting on behalf of another, and in an estate this often means in a legal capacity. An Executor has a more narrow responsibility, only acting on the terms laid out in a Will. While there can be some overlap between a Fiduciary and Executor, all Fiduciaries and Executors must act in the best interest of the individual they represent at all times.

Let’s dive a little deeper.

A Fiduciary is someone acting on behalf of another person (the decedent in a probate case), keeping their interests in mind. Fiduciary roles are common in the Estate Planning process and include Trustees, Executors, Guardians, Conservators and attorneys.

Fiduciaries can be chosen by an individual or be court-appointed depending on the circumstances. When selecting a fiduciary it is recommended to choose someone you and your beneficiaries trust, such as a relative, or friend.. A fiduciary has an ethical and legal responsibility to provide the best form of care to the decedent. Fiduciaries often have some form of financial responsibility, making this duty crucial to the success of the role.

The Executor is the person in charge of following the terms provided in a Will. The role can be time consuming and usually involves gathering financial information, closing accounts, paying debts, and filing necessary taxes. It is also common to designate certain funds within a Will to the Executor, which the Executor will receive near the end of the probate process, after other debts have been settled.  An Executor is responsible for beginning the probate process and navigating the decedent’s wishes as included in the Will. It would be helpful to hire a lawyer to help with the process to make sure everything is done timely and properly, so as to avoid problems down the road.

Get in touch with a probate lawyer today with the contact information below.

Vincent F. Heuser, Jr.
3600 Goldsmith Lane
Louisville KY 40220
(502) 458-5879
https://heuserlawoffice.net
vheuser@heuserlawoffice.com

Every man dies

For your minor children

To avoid the extensive probate process

To eliminate estate taxes

You decide who will wind up the affairs of your estate.

To leave out family members you don’t like

To make gifts and donations

To make it easy for your family

To determine who will manage your estate.

To leave money to your pets

For funeral instructions

For peace of mind

The problem with estate planning is that you don’t discover your mistakes until after its too late.  It’s the quintessential “get it right the first time” situation.

We occasionally blog about important terms to include in your Will.  Here are a few  suggested terms:  ademption, lapse, exoneration and advancements.

Your will ought to mention whether your gifts are subject to ademption, lapse,  or exoneration, and whether they are made per stirpes.

You might also announce whether, at the time of execution, you have made any  advancements to any beneficiaries.

Doing these things protects you from 90% of the disputes that occur in estates.  For more information contact a probate lawyer like:

Vincent F. Heuser, Jr.
3600 Goldsmith Lane
Louisville KY 40220
(502) 458-5879
https://heuserlawoffice.com
vheuser@heuserlawoffice.com

When a loved one dies, you might be facing the responsibility of settling their affairs. Matters needing attention range from personal matters like notifying family and making funeral arrangements, to legal matters including gathering records and reporting the information to beneficiaries, to handling financial affairs of paying taxes and distributing assets.

Knowing what to do and when to do it can keep you from feeling overwhelmed in a difficult time.
Professional guidance can definitely smooth the way. Vincent F. Heuser, Jr., Attorney is an expert in probate and estate matters and

The executor of an estate may be an individual such as the decedent’s spouse, child, advisor or other person, or it may be a financial institution such as a trust company or bank. If you are the executor, it is important to have a clear understanding of the process and handle things diligently and openly.

Key Steps and Time Line for Settling an Estate

Estate settlement involves both technical and personal skills and responsibilities, ranging from getting tax returns prepared and filed to resolving conflicts among beneficiaries. It also carries significant potential legal liabilities and requires a certain commitment of time and energy.

Tasks Done in Months One through Three
Review Will, Trust and other documents. Carefully review the will and any trust documents or related document to make sure you have a full understanding of the situation and plan. Collect documents such as the death certificate, life insurance policies, birth certificates, military discharge papers, marriage certificates and real estate titles. Gather financial records such as bank, brokerage and retirement account statements for the past three years and handle claims submitted by creditors.

File the Will and Probate Petition if necessary. Heuser Law Office generally handles these matters very efficiently.

Secure Personal Property
All property such as homes, boats, furniture, antiques, artwork, clothing, photographs and jewelry as well as personal documents such as journals, diaries and correspondence must be secured and protected. It is important to preserve and secure all items, including items that were promised to a child or relative, until the estate is properly settled.

Appraise and Insure Valuable Assets
After all estate property has been identified and located, consult with you attorney to make sure assets are properly valued and insured (vacant homes require special attention because traditional policies terminate when a home is not occupied).

Cancel Personal Accounts. After appointment or as advised by your attorney, close all personal accounts and cancel automatic payments and withdrawals, and subscriptions and memberships.

Determine Location of Assets and Secure “Date of Death Values”
One of the most tedious tasks is taking an inventory of the entire estate and determining the value of all assets, including investment accounts, business interests, insurance policies, bank deposit boxes and intellectual property (patents, licenses and copyrights). Taking possession of property located outside the United States can be particularly challenging.

Submit Probate Inventory.
In most circumstances a detailed inventory of all property, real or personal, is required to be filed. Determining how much detail is required is more of an art than a science. Consult with Exceutor’s counsel before filing an inventory with probate court.

Months Three through Six
Begin resolving financial assets, assets in IRA/401(k) accounts, brokerage and savings accounts, and financial interests in corps. LLC’s, partnerships or other businesses, in consultation with your estate attorney, liquidate and transfer them into the estate account.

Once the claims period has passed, and before if your attorney suggests, you can distribute tangible items to beneficiaries and distribute personal property as directed by the will or trust document. This is an area that requires the diplomacy of an experienced executor, since surviving family members often have strong emotional attachments to items of sentimental value. Generally, Wills prepared by our attorneys have a specific plan for tangible personal property. A good probate attorney can guide you in a reasonable distribution plan.

File taxes and other IRS forms and make partial distributions.

File any estate tax return and make a partial distribution of financial assets to beneficiaries according to the directives of the will. This may mean “in-kind” distribution (transfer of title), or property may be distributed to a trust and distributed over time. Maintain reserves, usually at least 20% of the total value of the estate, to pay the estate’s expenses until it is closed.

Within nine months, prepare and file a federal estate tax return, if required. It usually takes the IRS another six to nine months to process the return. Kentucky Inheritance tax return should also be filed by this time. You may need to file Information about Beneficiaries (Form 8971). You may need to file a Gift and Generation-Skipping Transfer Tax (Form 709) Verify this with your attorney.

Estate and Income Tax (Form 1041)
Estates and some trusts are separate taxpayers. That requires obtaining separate tax ID numbers and filing fiduciary income tax returns. These are specialized returns that require a an attorney or CPA familiar with such filings.

Final Individual Income Taxes (Form 1040)
The estate or trust have tax returns to file. The executor or successor trustee is also responsible for ensuring the decedent’s final individual returns are filed, and addressing any issues with past filings.
Months 18 through 36

Preparing to close and closing:
Secure closing letters from the IRS
Pay any remaining expenses
Distribute any reserves that were held pending resolution of contingencies
Prepare and file the final accounting or waivers if appropriate.
Make final distributions
File petition for discharge of executor responsibilities

Footnotes
This communication is intended solely to provide general information. The information and opinions stated are as of March 26, 2016, and may change without notice. The information and opinions do not represent a complete analysis of every material fact regarding any market, industry, sector or security. Statements of fact have been obtained from sources deemed reliable, but no representation is made as to their completeness or accuracy. The opinions expressed are not intended as individual investment, tax or estate planning advice or as a recommendation of any particular security, strategy or investment product. Please consult your personal advisor to determine whether this information may be appropriate for you. This information is provided solely for insight into our general management philosophy and process. Historical performance does not guarantee future results and results may differ over future time periods.

IRS Circular 230 Notice: Pursuant to relevant U.S. Treasury regulations, we inform you that any tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. You should seek advice based on your particular circumstances from your tax advisor.

Welcome to Louisville Probate Clinic. Questions are always welcome, but please make sure you don’t leave any confidential or even personally identifiable information because this is a very public place! Use the contact page to initiate contact and then you can get advice on how to share information safely!

DO NOT POST ANY PRIVATE INFORMATION !

If you have a question, you can send an email from the contact page or you can post the question as a new post or as a comment, but registration is required for those. Feel free to use a fake name in posts and comments. You email address is not shared, sold or used in any way. It is best not to share personal data in any post or comment and better to wait for a responsive email before sharing any confidential information even by email.