I want to put the money in my brothers trust. Do I have to wait until everything is finished? I guess I can't put a little of the money in the trust either.
My mother died in 2014. I still have $5000 in the estate account until May 2017. The IRS can go back three years on any tax mistakes. The Lawyer that helped me with my mother's estate made that recommendation. Executor's should not try and probate an estate without the assistance of a lawyer.
You should consult your lawyer. However, here's what I've learned as an estate Executor... you must remember that the deceased may owe taxes, or you may need to pay a tax preparer from the estate account to help you file, even if no money is owed. The estate may receive a bill from a service (like a credit card or newspaper subscription) that you were not aware was active. You may need to show current bank statements to the filing office in the deceased person's County (or wherever you filed papers to open the estate when your loved one died) when you reconcile the Estate (usually the first reconciliation occurs 3 months from date of death and the second one happens after six months have passed). So, no, you shouldn't close that account yet. It's OK to distribute some money, but don't empty the account or close it. You may need some money for estate-related expenses, and you may need to show that the account is active when you next reconcile the estate. Hope that's helpful.
People who proceed with things without their lawyers advice or knowledge may end up with negative consequences. I would see the advice of counsel, as any step you take can impact you and the case.
Had - ? Will you need to get repaid the $ you deposited into the SNT? If not, then I'd just put in whatever to the snt pay for costs. But if you need to be repaid for the $ - as it's really a loan by you - from the assets of the estate, it's going to be sticky. I'd suggest you get with your atty. to get a set modest monthly $ draw from the estate paid to the SNT. And it gets backdated to date probate was opened so you have a bit of a kitty of $$ to start off with. I'd keep the monthly amount as low as possible so if something comes up there are estate funds to pay in full for things.
Hadnuff, I do understand why you are asking the question, and the fact that all the money is for your disabled brother complicates things. What I don't understand is why you are asking US. You have a good lawyer. Use him.
My brother was the executor, and he waited until all the bills were paid (medical) before he started dividing the money and closing down accounts. It's just what you have to do.
If the estate has assets you kinda need to keep open an "estate of" bank account till it becomes a negative asset.....like the executor is using their own $ to keep the bank account alive.
another item to consider on dealing with estates is If there is a home or other property that has insurance - like home has a vacant dwelling policy - when it gets sold or transferred any overage paid on the policy to date of cancellation/sale or transfer will be repaid. And the check will be written to "estate of" which has to be deposited to an estate account. If your trying to close out probate you don't want this. Try to get the insurance to be billed quarterly (or even monthly if you can) to lessen assets.
Some probate courts allow for probate to remain open like till forever (TX does this) & executor may need to do an quarterly or annual report to PC if estate is over a certain amount.
I have a good lawyer. The reason I asked is because of brother. He has a special needs trust. Only has $1500 in it. All money. from estate will go in trust. So can't pay much of brothers expenses that trust allows right now. I'll have to use my own money untill I can close the estate account.
probate an estate without the assistance of a lawyer.
However, here's what I've learned as an estate Executor... you must remember that the deceased may owe taxes, or you may need to pay a tax preparer from the estate account to help you file, even if no money is owed. The estate may receive a bill from a service (like a credit card or newspaper subscription) that you were not aware was active. You may need to show current bank statements to the filing office in the deceased person's County (or wherever you filed papers to open the estate when your loved one died) when you reconcile the Estate (usually the first reconciliation occurs 3 months from date of death and the second one happens after six months have passed).
So, no, you shouldn't close that account yet. It's OK to distribute some money, but don't empty the account or close it. You may need some money for estate-related expenses, and you may need to show that the account is active when you next reconcile the estate.
Hope that's helpful.
If not, then I'd just put in whatever to the snt pay for costs.
But if you need to be repaid for the $ - as it's really a loan by you - from the assets of the estate, it's going to be sticky. I'd suggest you get with your atty. to get a set modest monthly $ draw from the estate paid to the SNT. And it gets backdated to date probate was opened so you have a bit of a kitty of $$ to start off with. I'd keep the monthly amount as low as possible so if something comes up there are estate funds to pay in full for things.
another item to consider on dealing with estates is If there is a home or other property that has insurance - like home has a vacant dwelling policy - when it gets sold or transferred any overage paid on the policy to date of cancellation/sale or transfer will be repaid. And the check will be written to "estate of" which has to be deposited to an estate account. If your trying to close out probate you don't want this. Try to get the insurance to be billed quarterly (or even monthly if you can) to lessen assets.
Some probate courts allow for probate to remain open like till forever (TX does this) & executor may need to do an quarterly or annual report to PC if estate is over a certain amount.
See All Answers