At Nicolosi & Associates, our attorneys offer sound advice and focused advocacy on probate issues. We will help guide you throught this complicated process to ensure the estate is distributed properly.
The basic steps of Probate include the following:
1. Filing the will and petition at the probate court in order to be appointed executor or personal representative. In the absence of a will, heirs must petition the court to be appointed as the administrator of the estate.
2. Marshalling, or collecting the assets. This means that you must determine everything the decedent owned. You must to file a list of these assets, known as an “inventory,” with the probate court. It is generally best to consolidate all of the estate funds into one account to the extent possible. Bills and bequests should be paid from a single checking account in order to keep track of all expenditures.
3. Paying bills and taxes. If an estate tax return is needed, it must be filed within nine months of the date of death. If you miss this deadline and the estate is taxable, severe penalties and interest may apply. If you do not have all of the information available in time, you can file for an extension and pay your best estimate of the tax due.
4. Filing tax returns. You must also file a final income tax return for the decedent and, if the estate holds any assets or earns interest or dividends, an income tax return for the estate must be filed as well. If the estate does earn income during the administration process, it will have to obtain its own tax identification number in order to keep track of such earnings and file an estate income tax return in addition to the decedent’s final income tax return.
5. Distributing property to the heirs and legatees. Generally, executors do not pay out all of the estate assets until the period runs out for creditors to make claims. In Illinois, this date is six months from the date the estate publishes notice of death in the newspaper. However, once the executor understands the estate and the likely claims, he or she can distribute most of the assets, retaining a reserve for unanticipated claims and costs of closing out the estate.
6. Filing a final account. The executor must file an account with the probate court listing any income to the estate since the date of death and all expenses and estate distributions. Once the court approves this final account, the executor is free to distribute whatever is left in the closing reserve.
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