Estate administration involves the formal probate of a will, the administration of the appropriate letters of administration, proper advertisements of the estate, filing all the tax forms necessary, managing final debts of the decedent, making a first and final accounting, distributing the assets and generally tying up any other loose ends which may exist. Our office is skilled at dealing with each of the details of estate administration. We can help.
Probate:
Probating an estate, whether with a will (testate) or without a will (intestate) is the formal process of opening an
estate in the county where the decedent resided at the time of his or her death. This involves a trip to the courthouse
by the executor or administrator and the granting of the proper letters of administration. There are a variety
of types of letters of administration, again, depending largely upon whether or not there was a written will.
My office can assist you in the granting of the proper letters of administration, along with this formal process of
opening the estate at the Register of Wills in the county where the decedent last resided.
Inheritance Tax Returns:
An inheritance tax return must be prepared once a formal estate has been opened. We will work with you to
minimize the taxes due. Estate tax returns, when filed in a timely manner, can receive a 5% discount on Pennsylvania
estate taxes due. We can assist you in the preparation of the inheritance tax returns, both state and federal.
Estate tax returns can be confusing, as there are items which may be included for one reason but excluded for
other reasons. These returns are sometimes counter-intuitive. It is for this reason that hiring a skilled professional
is in the best interest of the estate in most cases.
Payment of Decedent’s Debts:
There are often ongoing financial obligations which must be addressed at the time of the administration of the
decedent’s estate. The executor is responsible for seeing to it that all of the decedent’s debts are paid as part of
the administration of the estate. My office is skilled at uncovering these debts and working with executors to see
to it that all of the debts are paid in a timely manner. In administering the estate, handling these day-to-day details
can be tiresome. We have worked with all of the local banking institution as well as with most major utility
companies and suppliers in Central Pennsylvania and are familiar with their processes in finalizing accounts in
estate administration.
Finalizing a loved one’s financial obligations, including the payment of their debts, can be emotionally trying.
This is an additional reason to employ a professional to assist you, as the strain of dealing with the loss of a
loved one is often enough to bear without having to deal with other day-to-day details.
Formal and Informal Accounting:
Estates which meet certain dollar thresholds may be settled with a family settlement agreement and may require
a less formal accounting procedure. If this is possible with your estate, we will be happy to guide you through
the process. Formal accounting is the enumeration or listing of all the assets of the decedent’s estate that the
court must approve before any of the assets are distributed to the beneficiaries. Informal accounting does the
same thing that formal accounting does, but it is intended only for the heirs or other interested parties and does
not need the court’s approval.
It is not unusual for us to file a “first and final” formal accounting in the administration of an estate. The Commonwealth
of Pennsylvania has a vested interested in knowing where assets are located and knowing that those
assets are being maintained and taxed appropriately. It is for this reason that formal or informal accounting is
necessary in the administration of a decedent’s estate.
It is often here, in the accounting portion of the estate administration, that our office can get a good estimate of
the value of the estate, the estate taxes due, and the size of the distribution. The formal and informal accounting
requirements help both the Commonwealth and the beneficiaries to know the size of the distributions which can
be expected at the finalization of the administration of the estate.
Distribution:
The distribution of the remaining assets of the estate is normally the final step in an estate administration. This
routinely takes place after all of the preceding steps are completed. Distribution to family members can be made
in a formal or informal setting. Occasionally the will stipulates when and how distribution is to be made. The
distribution of the assets to the beneficiaries is handled only after all of the debts and administrative costs have
been taken care of. Distribution can also be made to charities, when so directed by a will, trust or other estate
document. We will help you see to it that distributions are made according to the decedent’s wishes.
