| State Death Taxes - Returns and Allocation |
| Each state usually has its own forms for inheritance-tax or other death-tax returns. Obtain these forms at the earliest possible date so that you will be aware in advance of your responsibilities and can accumulate the necessary information during the administration of the estate. As soon as reasonably possible, become familiar with the time requirements for filing the state death-tax returns. Some states give a discount for early payment, and this early payment can be due several months after death. The tax return often is due in less than a year, with penalties for late payment. More... |
| Estate-Tax Valuation -- Other Assets |
| Life insurance on the decedent that is received by or for the benefit of the estate is taxed in the estate. (Note that many state death taxes do not require inclusion, or provide special partial exclusions for life insurance proceeds.) The amount should be the amount received by the beneficiary, including any dividends and premium refunds paid to the beneficiary.More... |
| Executors - Life Insurance |
| While the collection of life insurance proceeds payable to a named beneficiary is not technically the executor's responsibility (since the moneys paid do not constitute an asset of the estate), for tax and cash flow and control reasons, be aware of all insurance policies on the life of the decedent. If the beneficiaries are relying on the executor to handle all of the decedent's affairs, including the collection of nonprobate assets, the executor should take an active role in helping them collect the proceeds.More... |
| Inheritance Without Planning Means No Changing the Default Plan |
| When a person dies intestate (without making and leaving a will), each state provides a default plan (usually known as the statute of descent and distribution) under with his or her net estate is disposed. When a person dies intestate, there is no changing the default plan. The default plan's sequences for determining who inherits and how much can not be changed. This article discusses the disadvantages of descent and distribution related to that inability to change who inherits and how much.More... |
| Inheritance Without Planning Means No Provisions Beyond the Default Plan |
| When a person dies intestate (without making and leaving a will), each state provides a default plan (usually known as the statute of descent and distribution) under with his or her net estate is disposed. When a person dies intestate, there is no adding of provisions beyond the default plan. The default plan is only the default plan and nothing more. This article discusses the disadvantages of descent and distribution related to the inability to add provisions beyond the default plan.More... |
Harold G. Ayer A Professional Law Corporation
Estate Planning Newsletter
