Settling estates liquidating stocks
Note that the value of all of the decedent's assets will need to be established, including those passing outside of the trust, in order to determine if any estate taxes and/or inheritance taxes will be owed.Assets that can pass outside of the trust may include those that were owned as tenants by the entirety or joint tenants with right of survivorship, payable on death or transfer on death accounts, and life insurance, IRAs, 401(k)s and annuities with named beneficiaries.The final federal income tax return will be due on April 15 of the year after the decedent's year of death.Aside from filing the decedent's final income tax return, if the estate earns income during the course of administration, then the successor Trustee will need to prepare and file all required federal estate income tax returns (IRS Form 1041) as well as any required state estate income tax returns.All financial institutions where the decedent's assets are located must be contacted to obtain the date of death values.For assets including real estate, personal effects including jewelry, art work and collectibles, and closely held businesses, they'll need to be appraised by a professional appraiser.When reviewing the trust, make notes about the following - special instructions regarding the decedent's funeral, cremation or burial; who gets the decedent's personal effects; who gets any specific bequests; who gets the decedent's residuary trust; who is named as the successor Trustee(s) to settle the trust as well as who is named as Trustee(s) of any trusts that need to be created now that the Trustmaker has died; the date and location where the trust agreement was signed; and who signed the trust as witnesses and Notary Public.In addition to reading the Revocable Living Trust and summarizing what it says, review the decedent's financial documents and make a list of what the decedent owned and owed, how each asset is titled (in the name of the trust, in the Trustmaker's individual name, as tenants in common, or in joint names with someone else), and, for assets and debts that have a statement, the value of the asset or debt as listed on the statement and the date of the statement.
Aside from locating the original Revocable Living Trust agreement and any trust amendments, you'll also need to locate the decedent's original Pour-Over Will.In addition, the decedent may have left written funeral, cremation, burial or memorial instructions and a personal property memorandum.All original documents should be stored in a safe place until they can be given to the trust attorney.Once the date of death values have been determined for the decedent's assets, the next step is to pay the decedent's final bills and ongoing expenses of administering the trust.
Once the date of death values have been determined for all of the decedent's assets, the next step in settling the Revocable Living Trust is to pay the decedent's final bills and ongoing expenses related to administering the trust.
Once the decedent's legal documents and other important papers have been sorted through, the next step in settling a Revocable Living Trust is to meet with a trust attorney to determine if probate will be required and if the attorney's assistance will be needed to help with settling and then terminating the trust.