DUTIES OF A PERSONAL REPRESENTATIVE (EXECUTOR)

Read the WARNING! first.

The duties of an Arizona personal representative (executor) may be grouped into several broad categories:

• Ascertaining the Estate

• Collect the assets of the Estate

• Preserve and protect the assets of the Estate

• Manage the assets of the Estate

• Give notice to beneficiaries and others

• Value the Estate for tax and distribution purposes

• Prepare and file all necessary tax returns

• Pay all debts and expenses of the Estate

• Distribute assets to heirs and beneficiaries

• Close the Estate

Ascertaining the Estate

• Obtain decedent's Last Will and any Codicils (amendments to a will)

• Obtain any letter of instruction from the decedent

• Consider anatomical bequests and funeral instructions, if such instructions are included in the will.

• Choose an attorney, CPA and any other professional advisors

• Consider signing a release that will allow advisors to obtain information they may need to perform their duties

• Analyze the Will (with advisors) and obtain an understanding of the decedent's intent/wishes

• Determine whether you are required to obtain a bond

• Meet with estate attorney and agree on delegation of duties.

• Discuss with attorney:

  • Fees

  • Choice of appraisers

  • Notification requirements

  • Tax reporting requirements

  • Opening of safe deposit boxes

  • Closely held business interests or other unusual assets

  • Pending litigation concerning the decedent

• Obtain the following records, at a minimum:

  • Death certificate

  • Bank records

  • Cancelled checks and checkbooks for past 3 years

  • Income tax returns for past 3 years

  • All past gift tax returns

  • Insurance policies and appraisals

  • Medical information

  • Credit cards, debit cards, etc.

  • Securities, travelers checks, etc.

  • Closely held business records

  • Retirement plan documents

• Identify jewelry, fine arts and transportable valuables for inventory and consideration for placement in vault, etc.

• Review all insurance policies and consider cancellation, and increased or decreased coverage,

• Begin compiling data on inventory of estate assets

• Ascertain if any assets are located in other states/countries

• Review several years check books for insurance payment information

Collection of Assets

• Find and take possession of the estate assets and financial records

  • Cash on hand and in bank

  • Personal assets and valuables

• Make arrangements with banks and brokerage houses, etc. for changes in account, names, identification numbers, signers, etc.

• Arrange for safe deposit box opening:

  • Bring key

  • Determine if family members, etc. want to be present

  • Arrange secure transport if valuables are to be removed

• Request insurance proceeds to which estate is entitled

Preservation of Estate

• Make security arrangements for decedent's house, if vacant (and during the funeral)

• Make security arrangement for decedent's other assets, such as business premises

• Secure car and house keys and change house locks

Management of Assets

• Cancel club memberships and collect prepaid dues

• Cancel subscriptions and obtain refund on unexpired portion of subscription

• Cancel credit cards, debit cards, etc.:

• Inquire whether there is credit card life insurance in effect

• Obtain cards from employees, family members, etc.

• Consider surviving spouse's wish to have new cards issued in own name

• Set up the estate's accounting system to account for all monetary transactions subsequent to death. (Savings, checking, investment accounts, etc.)

• Perform accounting functions on an ongoing basis

• Determine the type and frequency of accounting to be made to beneficiaries

• Determine if there were any "death bed" gift checks issued which had not cleared the bank as of the time of death. (Not to be considered as completed gifts as of date of death)

• Set up accounting system to keep track of reimbursable expenses incurred by personal representative on behalf of the estate

• If a closely held business is involved, arrange for continued operation and/or orderly closing of business

• Redeem U.S. treasury bonds

• Redeem traveler's checks

• Determine the type and frequency of accounting to be made to beneficiaries

Valuation of Estate

• Determine what assets require appraisal

• Locate and engage services of necessary appraisers

• Obtain appraisals, if needed

Notification

• Notify responsible parties of your position as personal representative and change mailing addresses,

• Notify bankers and other advisors of decedent's death

• Contact beneficiaries regarding any need for income or desire to defer the taxable income (for tax planning)

• Notify beneficiaries of tax basis for assets distributed to them

Tax

• File Form 56 to notify IRS of your fiduciary duty

• Obtain any needed federal identification numbers for the estate and/or trusts

• Determine if decedent had received any property that was subject to estate tax in any other estates within the past 10 years

• Obtain information about any prior gifts by the decedent exceeding $10,000 per year/per donee (Review all gift tax returns, Form 709, if available)

• For businesses, file Forms 1099, W-2, payroll reports, etc. as required

• Request social security numbers, addresses and income tax brackets of beneficiaries.

• Request Form 712 information (life insurance statement)

• Review estate and income tax planning with attorney and CPA

• Obtain information to prepare and file decedent's final personal income
  tax return:

• Consider extension of time to file

• Consider joint return with surviving spouse

• Consider the need for amended returns

• File final Form 1040 and pay tax

• Consider asking IRS for prompt assessment of tax liability under IRC
  6501

• Consider need to file gift tax returns, Form 709 for current and past
  years

• Review income tax returns for as yet undiscovered assets

• Complete forms (veterans, survivors benefits, burial allowance, lump sum death benefits, etc. if needed) for claiming benefits due

• Review post-mortem tax planning with attorney and accountant to determine the desirability of deferred or prompt closing of the estate.

• Consider the need to request the personal representative's discharge from personal liability for estate tax, under IRC Section 2204

• Consider need to contact partnerships in which decedent had interest regarding IRC section 754 elections

• Obtain information to prepare and file estate's income tax return -- Form 1041

• Consider need for estimated tax payments during the period of administration

• Consider the need for extension of time to file the return

• Obtain information to prepare and file decedent's estate tax return (Form 706):

• Consider the need to obtain an extension of time to pay estate tax

  • Make state requests, if needed

• Consider the need to obtain an extension of time to file the return

  • Make state requests, if needed

• File federal estate tax return, Form 706, with required attachments

• File state estate tax return

Debt Payment

• Determine which debts should be paid and which should be contested

• Pay expenses of administration (attorney's fees, CPA's fees, appraisal fees, personal representative's fees)

• Pay taxes when due

Distribution of Estate

• Determine if there are any unusual circumstances warranting early estate distributions

• Make distributions to beneficiaries

• Distribute specific bequests of tangible personal property

• Supervise any selection process required

• Consider the need to withhold tax for payments to nonresident alien beneficiaries

• Do not distribute funds unless certain all liabilities have been paid and final tax liabilities established

Closing of Estate

• Prepare and review the final accounting

• Review checklist to ascertain that all required duties performed

• Obtain receipts and releases from all heirs and beneficiaries

• Prepare and file Closing Statement