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ESTATE ADMINISTRATION
Estate administration is the handling of financial and personal matters after a death. It is the transferring of assets from the
deceased party to those who are to receive those assets by
reason of a will, trust or through a beneficiary designation. What may be required depends on the estate planning or lack of it that has taken place prior to the death.
Handling of Assets
In most situations, husbands and wives hold their assets jointly with right of survivorship. If this is the case, at the death of the first spouse, little needs to be done from an estate administration standpoint. All joint assets with rights of survivorship will pass immediately to that surviving spouse.
Estate administration is usually required on the death of the
second spouse. That administration and its costs can be reduced or avoided to a significant extent through proper planning.
Where couples have used planning and kept that planning
current, there is less administration required and less costs. On the first death, generally all that is needed is some discussion as to how the plan was to work and checking whether there were any assets that were not part of the plan, a reminder of the
income tax filings required, and the preparation and filing of the Indiana Inheritance Tax and Federal Estate Tax, if applicable.
If the decedent has more than $50,000 in assets in his or her own name, an estate must be opened with the Court in the county of the decedent’s residence. This is often referred to as “probate.” The process takes from 8 to 13 months, mainly due to the 3 month claim period and the 2 ½ to 4 month time period for approval of the Indiana Inheritance Tax Return by the County Court and then the Indiana Department of Revenue.
Next: Handling of Assets (continued) and Keeping the Family Together and Avoiding Family Conflict
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