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Estate Trustee's
Duties – Administering the Estate
Immediate Matters:
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Make proper
funeral and burial arrangements, and pay funeral expenses.
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Retain competent
certified public accountant and obtain legal advice.
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If prior year
income tax returns were not completed, file (or arranged to have
filed) income tax returns for year of death and for all prior years
which are due but were not filed at the date of death.
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Determine,
locate and notify beneficiaries of their interest. Send formal
notice.
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Determine,
secure and protect assets. Liquidate any asset in a high risk
investment.
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Dispose of all
perishables.
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Open
estate/trust bank account.
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Review insurance
coverage and insure estate assets against fire and other perils.
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Make provision
for the immediate needs of deceased's spouse and any other
dependants of the deceased.
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Collect income
generated by the estate assets or payable to the deceased.
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Pay bills,
mortgage payments, insurance premiums, credit cards.
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Re-direct mail.
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Cancel health
insurance coverage, driver's license, cable, telephone, club
memberships, subscriptions, credit cards and obtain any refunds
where appropriate.
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Notify Social
Security.
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Locate all
insurance policies to determine what coverage applies and if a claim
for life insurance proceeds should be made.
Interim
Matters:
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Prepare
inventory of original assets including safety deposit box listing,
real estate, monies on deposit at financial institutions, life
insurance, any interest in an estate or trust and any other
investments such as a mortgage.
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Arrange
valuation of assets where necessary.
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Advertise for
creditors and prepare inventory of debts.
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Ascertain any
debts to family members and locate evidence regarding loan balance.
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Consider any
claims or potential claims against the estate and obtain legal
advice if necessary.
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Set aside
reserve funds for estimated debts, taxes (including potential
taxable capital gains on property and any possible litigation) and
estate trustee's compensation.
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Prepare interim
release and make interim distribution to beneficiaries if
appropriate; where a clearance certificate has not yet been obtained
and there are no outstanding prior year income tax returns, interim
distributions should seldom exceed one-half the estate value; if
there are outstanding prior year income tax returns or the estate
trustee is not familiar with the affairs of the deceased, no interim
distributions should be made until a clearance certificate with
respect to the terminal return has been obtained.
Final Matters:
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Convert
investments and other assets to cash and deposit to estate account
or, if estate balance is substantial and final distribution will be
delayed, invest balance in interest-earning investments pending
final distribution to beneficiaries.
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Re-register
assets in estate's/Trustee’s name, if applicable.
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Prepare
transfer/deed for conveyance of real property
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Settle to pay
all legitimate claims against the estate. Alternatively, set aside
reserve sufficient for any outstanding litigation.
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Apply for any
benefits payable on death, life insurance proceeds, death benefits
from pension plans or annuities, and deposit to estate account
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File a Trust
Return, if appropriate.
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Prepare and
maintain estate accounts for approval by the beneficiaries or
examination by the court if a passing of accounts is appropriate or
required.
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Prepare and have
beneficiaries sign releases prior to distributing funds.
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Prepare checks
and pay shares to beneficiaries.
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Advise
beneficiaries regarding inclusion of income from estate in income
tax, if appropriate
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Close the estate
account.
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These
Articles are to give the reader a general description of certain areas of
the law. Legal advice is necessary to apply these legal concepts to your
particular situation. The Reader should obtain competent legal advice
before relying on the Articles.
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