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how to start on settling an estate

13 years ago

My mom recently passed and left several CDs and stocks in a irrevocable trust. Her will was also put in place 10 yr ago. All will go to myself and my two siblings, everyone is very cooperative on this.

While I can contact the lawyer who set up her trust, is it likely a lawyer is not needed? Would an accountant be enough? Anyone have experience in doing this sans lawyer and is there anything like estate settling for dummies out there?

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Comments (5)

duluthinbloomz4
13 years ago
First: Why do people want to handle legal affairs without the benefit of good legal counsel? (lawyers can do a lot of the detail work for one thing.) Legal fees come out of the estate before it's distributed anyway.

Second: Are you sure it's an IRREVOCABLE trust as opposed to the REVOCABLE Living Trust? Be good to find out.

Third: Opening an Estate account is a must for paying bills and final expenses and pouring in any liquid assets. Is there a house involved or any real property?

Are the assets - CDs, shares of stock going to be easily divisible into thirds? I'm sure you'll be juggling. Make sure you have an adequate number of death certificates - you will be needing them to deal with banks and the CDs and stocks.
The executor/trix must get a taxpayer ID number for the irrevocable trust and file an annual trust income tax return. Like any tax return, this requires some work.

You must keep separate records for the irrevocable trust property.

My advice is to contact the lawyer who drew up the trust and will in the first place. He'll get you started on the right foot.
jakkom
13 years ago
Since estate laws vary from state to state, you should NEVER ask for estate-specific advice from an anonymous forum unless you are comfortable giving extensive details about the estate.

I agree 100% with duluthinbloomz's suggestions. The estate bears all costs involved with the distribution/transfer of assets.

Be aware that if your mom had an IRA and was taking distributions, it is best to have the heirs set up their own Inherited IRA accounts at whatever financial institution/brokerage they want, and then roll over their respective shares into these new Inherited IRA accounts. There are very specific titling requirements by the IRS to avoid being charged substantial penalties for liquidating the original IRA.

Multiple heirs must continue the Required Minimum Distribution withdrawals if they were being taken by the deceased. Consult your tax advisor for figuring out what the RMD is for the heirs; the IRS recently changed their formula for such inherited IRA distributions and I don't know what it is currently.
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duluthinbloomz4
13 years ago
I also totally agree that estate laws vary from state to state. But there are some constants when dealing with trusts and wills and distributions... you can't just slice it up and hand it out.

If you've never done it before, it can be daunting. Even if you have, it's still daunting and some real work making sure everything's done correctly.

My mantra is contact the original lawyer or seek out another one well versed in dealing with trusts, wills and estates.
maifleur01
13 years ago
Anything mentioned in the Will will need a federal tax ID. You can get one by going to the IRS website. You may need a second one for the trust. Keep every scrap of paper that you receive as anything payments regarding the Will will need receipts both for monies received and distributed. Since you have never done this before an attorney in my mind is a must. The cost is worth the worry that YOU did something wrong.

Also depending on how the will was written you may or may not be able to recover your costs from the estate. Since I was the sole heir of my parents and knew what would be left after all bills were settled I waived any costs. Some states have laws regarding the amount an excutor can or must claim as fees. You don't think of the cost of stamps and envelopes plus any travel to the attorney or court but it can add up. I would mention to the other heirs if you decide to ask for your costs to be reimbursed by the estate because this can cause long term family problems.
dreamgarden
13 years ago
I'd talk to the accountant who did her taxes. Ours was very helpful. He'd been doing the taxes for the past 10 yrs so he was very familiar with our parents estate.

Also wise to keep good notes. We picked up a notebook w/pockets and an accordian file so we could save receipts, bills, etc. Some creditors and doctors sent duplicate bills. It was helpful to be able to enter details of what was done on a daily basis so we could keep track of who/what/where was paid and remind them.

It is tough enough dealing with the loss of a loved one. All the more reason to write it down.

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