XI.       Bank Accounts, Notes & Mortgages Owed to Decedent or to

Decedent’s Trust

 

1.         Obtain copy of all bank account statements just prior to and just after                                                         death.                                                                                                                          __________

 

2.         Obtain copy of note and mortgage and amortization schedules

and calculate balances.                                                                                                __________

 

3.         Reconcile balances to date of death.                                                                          __________

 

2.                  Place all information on Estate Tax Return and/or Probate Court

Inventory, if needed.                                                                                                  __________

 

5.         Make sure all backup information is with Estate Tax Return.                                    __________

 

6.         Make sure all monthly statements are forwarded to person responsible

for the accountings.                                                                                                    __________

 

XII.     Life, Health and Hospitalization Insurance

 

1.         Prepare and file claims on life insurance policies.                                                       __________

 

2.         Request Form 712 when filing claims on life insurance policies

            insuring decedent’s life.                                                                                              __________

 

1.                  If decedent owned life insurance policies on the life of another, be sure

            to obtain Form 938 (now Form 712). If someone else owns a policy on

            life of decedent, obtain Form 712.                                                                             __________

 

4.         Check all hospitalization and health insurance policies to see if the Estate

or Trust has a claim for any insurance and have Personal Representative

and/or Trustee file needed claims.                                                                             __________

 

5.         Place all relevant information on 706 Estate Tax Return and/or Inventory.              __________   

 

6.                  Make sure all backup information is with the Estate Tax Return.                             __________

 

XIII.    Property Owned as Joint Tenants With Right of Survivorship

 

1.                  Determine which real estate, stocks and bonds or other securities,

notes receivable, bank accounts, tangible personal property or other

assets are owned as joint tenants with right of survivorship.                                     __________   

 

2.         Make sure all have been properly valued.                                                                   __________

 

3.         Statements for these assets do not have to be forwarded to the person

responsible for the accounting.                                                                                   __________

 

2.                  Place information on 706, Schedule E, Part 1 if the spouse is the sole

surviving tenant or part 2 if the spouse is not the sole surviving tenant.                    __________

 

5.         Make sure all backup information is with the Estate Tax Return.                              __________

 

XIV.    Miscellaneous Personal Property

 

1.         Make sure that we have copies of all titles to items which require

            registration like automobiles, airplanes and certain boats.                                          __________

 

2.                  Make sure that we have copies of all partnership (whether general, limited

or other), LLC, LLP, corporate or other closely held business documents

which decedent or trust had an interest in, along with financial

statements for five (5) years preceding date of death.                                               __________

 

 

3.         Check for fractional interest, minority, lack of marketability

or other discounts available.                                                                                       __________

 

4.         Using Kelley or NADA Blue Book for month of death, value all automobiles

            at their retail value, or obtain written offer or appraisal from automobile dealer.      __________

 

5.         Check for refunds such as for income taxes, retirement community,

subscriptions, Palmetto Electric, etc. Note:  Income taxes due or to be

refunded should be estimated by CPA. Income Taxes Due to

federal and local taxing authorities are debts and refunds are assets.                                    __________   

 

6.         If a trust, check for Bill of Sale for non-titled tangible personal property

into the trust.                                                                                                               __________

 

7.                  If non-titled personal property is not in trust, consider position that

property is owned as joint tenants with right of survivorship.                                   __________

 

8.         Check with attorney/staff to determine if Inventory             is needed of contents

of house(s).                                                                                                                 __________

 

9.         Order all necessary appraisals and coordinate with Personal Representative

and/or Trustee and attorney.                                                                                       __________

 

10.       Place all information on Estate Tax Returns and/or Inventory, if any.                      __________

 

11.       Make sure all back up information is with the Estate Tax Return.                             __________

 

XV.     Trusts Created by Decedent or by Someone Other Than Decedent

            And In Which Decedent Was a Settlor, Beneficiary, Trustee or Over

Which the Decedent Held Any Powers.

 

1.         Determine if decedent created any trusts during his or her lifetime.                         __________

           

2.                  Determine if decedent was a beneficiary or Trustee of a trust

created by someone else.                                                                                            __________

 

3.         Obtain copies of all such trust agreements.                                                                __________

 

4.         Determine if assets are taxable in decedent’s estate.                                                  __________

 

5.         Determine which taxable trust assets go on Schedule F, G and

H of Estate Tax Return. Generally a decedent’s Revocable Living

Trust goes on Schedule G and a Trust that decedent was a beneficiary

of and which was created by others, but over which the decedent has

a power of appointment goes on Schedule H. Note:  there are Trusts reported

on Schedule H but which may not be taxable such as those the decedent was

merely a Trustee of but with no powers that cause the assets to be included in the

Trustee’s estate.  A trust over which the decedent had no taxable power such as a

Trust B, certain Family Trusts and Credit Shelter Trusts go on Schedule F. Also

QTIP Trusts go on Schedule F.                                                                                  __________

 

6.         Make sure we have all back up and valuation information.                                        __________

 

7.         Place all information on Schedule G or Schedule H as applicable.                            __________

 

8.         Make sure all back up information is with the Estate Tax Return.                             __________

 

XVI.    Pensions, Annuities, IRAs and Roth IRAs

 

1.         Determine if decedent owned or was entitled to pension, annuity, IRA

            or Roth IRA benefits.                                                                                                 __________

 

2.                  Obtain list of assets in each account as of date of death.                                           __________

 

3.                  Obtain copy of all brokerage statements, if any, receive just prior to and

Just after date of death.                                                                                              __________

 

4.                  Obtain proof of each benefit including governing document, summary

plan description and beneficiary designations.                                                           __________

 

5.         Obtain valuations as necessary.                                                                                  __________

 

6.         If necessary use IRS valuation tables for pensions and/or annuities using

life expectancy and payout amount for beneficiary in conjunction with

Section 7520 rate.                                                                                                       __________

 

7.         Client must make sure CPA advises about all required IRA elections. 

If beneficiary is surviving spouse, then a rollover and designating new

beneficiaries should be considered. Roth IRAs should be considered separately.         CPA          

 

8.         Place all information on Schedule I of Estate Tax Returns and/or Inventory,

if any.                                                                                                                          __________

 

9.         Make sure all back up information is with the Estate Tax Return.                             __________

 

XVII.  Estate and/or Trust Claims and Liabilities

 

1.         Obtain funeral, doctor, nurses, hospital and other bills.                                             __________

 

2.         Classify as to which are “liens and encumbrances” for purposes

            of the Probate Court inventory, assuming a Personal Representative

            is appointed.                                                                                                                __________

 

3.         Review Statement of Creditor's Claims (Form 371PC) for validity and then

classify according to 62-3-805, if estate assets are insufficient to pay claims. 

Also check Trust Agreement, if any, for authorization to pay.                                  __________

 

 

4.        

Assuming a Personal Representative is appointed, if a claim against the estate

            is not believed to be valid, then disallow and file notice of disallowance

            (Form 372PC).                                                                                                            __________

 

5.         Place all relevant information on Schedule J of Estate Tax Return.                           __________

 

6.         Make sure all backup information is with the Estate Tax Return.                              __________

 

XVIII. Funeral and Administration Expenses

 

1.         Determine amount of all funeral expenses and place on Estate Tax Return.             __________

 

2.         Determine amount of fees, including legal fees, accounting

            fees, Personal Representative fees and Trustee fees.                                                  __________

 

3.         Determine amount of other administrative expenses including but not

limited to probate court costs, appraisal expenses, property taxes on estate

property and other miscellaneous expenses.                                                               __________

 

4.         Determine how much of the fees and administrative expenses

            will go on Estate Tax Return and how much on fiduciary income

            tax return.                                                                                                                    __________

 

5.         Statement waiving rights to deduct on the Estate Tax Returns

            those administration expenses and casualty losses deductible on

the Estate Income Tax Returns, if the personal  representative decides

to deduct those expenses on the income tax return. Place memo

in file showing items used on income tax return. Note:  can and

probably should only file waiver, if audited; otherwise, the statute

of limitations will eventually solve the problem but never double

deduct items without correcting one or the other return. Note:

certain items can be double deducted.                                                                       __________

 

6.         Place all relevant information on Schedule J of Estate Tax Return.                           __________

 

7.         Make sure all backup information is with the Estate Tax Return.                              __________

 

XIX.    Debts of Decedent

 

1.         Determine all debts of Decedent.                                                                               __________

 

2.         Make sure have proof of debt and amount.                                                                __________

 

3.         Determine which debt is secured by mortgage or is a lien on estate property.           __________

 

4.         Determine if someone else may also be liable for debt and if the Estate

may have a claim against such person.                                                                        __________    

           

5.         Place unsecured debts on Schedule K, Part I, of Estate Tax Return.                                    __________

 

6.         Place all mortgages and liens on Schedule K, Part II.                                                __________

 

7.         Determine most recent income tax or refund due as of date of death.                           CPA          

 

8.         Make sure all backup information is with the Estate Tax Return.                              __________

 

9.         Make sure all debts that constitute “liens or encumbrances” on probate

Property are reported on the Probate Court inventory, if any.                                   __________   

 

XX.     Expenses Incurred in Administering Property not Subject to Claims

 

1.         Determine if there is property not subject to claims of creditors.                               __________

 

2.         Place all relevant information on Schedule L of Estate Tax Return rather

            than Schedule J.                                                                                                          __________

           

3.         Make sure all backup information is with the Estate Tax Return.                              __________

 

4.         Determine most recent income tax or refund due as of date of death.                      __________   

 

XXI.    Qualified Disclaimer

 

1.         Determine if a Qualified Disclaimer is needed.                                                          __________

                                                                                   

2.         If needed, review Qualified Disclaimer Rules in detail.                                            __________

 

3.         Consider whether Qualified Disclaimer should be used to create

an estate tax on the first death (assuming a married couple)

in order to equalize the estates to avoid possible higher rates for

estate or the beneficiary or devisee.                                                                            __________

 

4.         Make sure Qualified Disclaimers are considered and discussed with

the Personal Representative and/or Trustee at initial conference.                              __________

 

5.         When making Qualified Disclaimers you can not be too careful.                              __________

 

XXII.  Marital Deduction Items

 

1.                              Determine what type of marital deduction clause you are dealing with,

if there is a surviving spouse.                   

-          Pecuniary Marital                                                                                      __________

-          Fractional Share Marital                                                                            __________

-          Other (List/Describe):_______________________________                 __________

 

2.         Determine which assets and amounts qualify for the marital deduction from

            estate taxes.                                                                                                                 __________

3.                  Assuming there is a surviving spouse, determine any QTIPable items

and whether or not needed to reduce estate taxes on first death.

Also consider consequences on second death if QTIP is not used.                           __________

 

4.         For QTIP items use formula and attach copy and put reference to formula

            in description on 706.                                                                                                 __________

 

5.         May need Reverse QTIP election, if there are GST issues.                                        __________

 

6.         Place all relevant information on Schedule M of Estate Tax Return.                         __________

 

7.         Make sure all back up information is with Estate Tax Return.                                   __________

 

8.                  When making QTIP and Reverse QTIP Elections, you can never be too

careful.                                                                                                                        __________

 

XXIII. Charitable, Public and Similar Gifts and Bequests

 

1.         Determine if charitable, public or similar gifts and bequests made

            that qualify for the estate tax charitable deduction.                                                   __________

 

2.                  Obtain complete details and amounts.                                                                        __________

 

3.                  Place relevant information on Schedule O of the Estate Tax Return

and attach appropriate additional Schedules explaining any

formulas and calculations.                                                                                          __________

           

4.         Make sure all backup information is with Estate Tax Return.                                    __________

 

XXIV. Previously Taxed Property (PTP) Credit

 

1.         Determine if anyone died within ten (10) years prior to the decedent’s

death or two (2) years after the decedent’s death who left property to the

decedent.                                                                                                                    __________

 

2.         Consider previously taxed property (PTP) credit.                                                      __________

 

3.         Consider health of beneficiaries of the decedent’s Will and/or Trust.                       __________

 

4.         Consider whether Estate Tax Return should be filed later.                                        __________

 

XXV.  GST Amounts

 

1.         Determine if and how GST exemption should be allocated.                                      __________   

 

2.         Consider impact of automatic allocation rules.                                                           __________

 

3.         Determine if need to use formula GST allocation. A formula is the

default method.                                                                                                          __________

 

 

4.         Determine if need to use Reverse QTIP Election and if formula election is

needed then make election and attach formula, if any, to Estate Tax

Return. A formula is the default method, if available.                                               __________

 

5.         Place all relevant information on GST portion of Estate

(Generation Skipping) Tax Return and attach appropriate additional

Schedules explaining any formulas and calculations.                                                 __________

 

6.         Make sure all relevant backup information is with the Estate Tax

(Generation Skipping) Return.                                                                                    __________

 

7.         When making GST and Reverse QTIP Elections, you can never be too

careful.                                                                                                                        __________

 

XXVI. Distribution and Termination of Estate

 

1.         Record all deeds of distribution for real estate and deliver to devisee(s).                 __________

 

2.                  Deliver all bills of sale and deeds of distribution for tangible personal                     __________

property to devisee(s).

 

3.                  Deliver all assignments of tangible personal property and deeds of distribution

to devisee(s).                                                                                                               __________

 

4.         Make sure all liabilities have been paid.                                                                      __________

 

5.         Make sure estate tax closing letters (if 706 filed) have been received and that

            the Probate Court issues a Termination of Appointment document.                          __________

 

6.         Make sure all Personal Representative fees (62-3-719),

Trustee fees (as required) and attorneys fees have been paid.                                    __________

 

7.        Make sure all income, estate, gift, GST, household employee, payroll or other

           tax returns have been filed.                                                                                          __________

 

8.         Make sure all receipts have been obtained before property is distributed.                 __________

 

9.         Prepare Schedule of Distribution (Form 410 PC), if a Personal

            Representative is appointed.                                                                                       __________

 

10.       File Accounting, if a Personal Representative is appointed, or have devisees

            sign a formal Waiver of Accounting. Good for confidentiality and to reduce costs,

            unless there are devises who will not cooperate.                                                        __________

 

11.       Prepare Application for Discharge of liens and Sureties (Form 411PC),

            if applicable.                                                                                                                __________

 

12.       Prepare Application for Settlement (Form 412 PC), if a Personal

            Representative is appointed.                                                                                       __________

13.       File Termination of Appointment (Form 414PC)

and Certificate of Discharge (Form 142PC)

if a Personal Representative is appointed and close file.       

Note: In Beaufort County, the Probate Court prepares and sends Form (414PC)

when it approves the petition for settlement. The cost in included

in the initial check to the Probate Court.                                                                    __________

 

14.      Review with Trustee their responsibilities in administering the

           Trust, if necessary.                                                                                                       __________

 

I hereby acknowledge that I received this checklist of my duties and responsibilities and The Law Office of Michael J. Howell, P.A. explained it to me. Except where noted otherwise, the duties and responsibilities are solely my own. For those that are shown as joint, these duties and responsibilities are shared with the person designated. I acknowledge that I have been told that as Personal Representative and/or Trustee, I am ultimately responsible for my duties and responsibilities to the appropriate courts, taxing authorities and beneficiaries, even if I delegate duties to others. I also acknowledge I have been told that although I may delegate certain of my duties to attorneys, accountants and others, I can not delegate the ultimate responsibilities themselves. I also acknowledge that the Law Office of Michael J. Howell, P.A only represents me in my capacity as Personal Representative and/or as Trustee and not in my individual capacity.

 

_______________________________________________                          Date:___________________

Personal Representative(s) and/or Trustee(s)

 

_______________________________________________                          Date:___________________

Personal Representative(s) and/or Trustee(s)

 

Note: Whenever the description Personal Representative (PR) and/or Trustee (TTEE) is used, these responsibilities and/or duties are the sole responsibility and duty of the person given.  Whenever the description “joint” is used, these responsibilities and/or duties are the joint responsibility of the Personal Representative and/or Trustee, as the case may be and the Law Offices of Michael J. Howell. Whenever the description “N/A” is used, this means that it does not appear that this responsibility or duty exists. Depending upon the context, a checkmark indicates that the item is for information only or has already been take care of.

 

 

 

 

 

 

Rev. 08/19

Copyright  2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2013, 2014, 2015, 2016, 2017, 2018, 2019 by The Law Office of Michael J. Howell, P.A.