Issue 7.15
Whether your spouse has just passed away or you have lost your mom or dad, the emotional trauma of losing a loved one often comes with a bewildering array of financial and legal issues demanding attention.
It is difficult enough for family members to handle the emotional trauma of a death, let alone taking the steps necessary to get these matters in order. Some things must occur immediately.
First, you should secure the tangible personal property, meaning anything you can touch such as silverware, dishes, furniture or artwork. After this is completed, the other financial and legal matters are not as pressing. These steps can wait a week or two without any real repercussions. It is more important that you and your family have time to grieve.
When you are ready you can meet with an attorney to review the steps necessary to administer the estate. While the exact steps differ with each estate here are some basic considerations.
Determine what estate planning documents exist and how the assets are titled. Was there a will or trust? If there was a trust, were the assets titled in the name of the trust? If this is the case, there should not be a need to commence a probate proceeding.
In either a probate proceeding or trust administration, you will need to have an inventory of the assets. This means you will need to determine everything that was owned at the time of death and prepare an inventory.
In the process of administering the estate, you will need to pay any bills and taxes. In order to limit exposure, you will want to publish notification to creditors and wait for that time period to expire. If an estate tax return is due, it must be filed within nine months of the date of death.
Once the assets have been inventoried and the expenses have been paid, you will be ready to distribute the assets of the estate. The final step is to obtain a “receipt and release” from the beneficiaries stating that they have received their share from the estate and release you as the personal representative or trustee of the estate from any future liability.
While there are many other steps and details that exist, the items listed above can serve as a basis to help guide you in the process. As with most things in life, those estates that have been well planned, usually result in less complications and difficulties in the administration process.
Jeffery J. McKenna is a local attorney serving clients in Utah, Arizona and Nevada. He is the former President of the Southern Utah Estate Planning Council and a shareholder at the law firm of Barney, McKenna, and Olmstead with offices in St. George and Mesquite. If you have questions you would like addressed in this column, you can contact him at (435) 628-1711 or jmckenna@barney-mckenna.com.