Florida
Estate Administration
FIDUCIARY -- In Florida, the executor of
a Last Will and Testament is referred to as a personal representative.
A personal representative is responsible for the administration
of a decedent's probate estate. A trustee is the fiduciary
responsible for implementing the terms of a Trust. According
to the Internal Revenue Service, an executor is the person
responsible for preparing and filing the United States Estate
Tax Return and Fiduciary Tax returns. Regardless of the terminology
used and the specific duties, a trustee, executor and/or personal
representative is responsible for the administration of a
decedent's estate.
PROBATE -- Probate is the court-administered
process of distributing assets that did not have a predetermined
beneficiary and that were registered in the decedent's sole
name. Even if there are no assets subject to probate, the
original Last Will and Testament and a death certificate need
to be filed with the probate court. If a Trust was created
during the decedent's lifetime, then we also need to file
a Notice of Trust with the court.
ESTATE TAX REPORTING -- Federal - If the
decedent's gross estate exceeds the applicable credit against
federal estate tax (for example, $1,00,000.00 in 2003) , then
a United States Estate Tax Return, form 706, must be filed
with the Internal Revenue Service. It is due 9 months after
the decedent's date of death.
Florida - If a federal estate tax return is due, then a copy
of it should be filed with the Florida Department of Revenue.
If no federal return is due, then an affidavit of no estate
tax due should be recorded against the legal description of
any Florida real estate. This is done to ensure clear title
when the property is eventually sold.
ESTATE VALUATION -- To value a decedent's
gross estate, we must determine the nature and the fair market
value of the assets owned at death and/or on the alternate
valuation date which is six months from date of death. The
Internal Revenue Code broadly defines someone's assets, so
everything from clothing to stock portfolios is includible.
The obvious assets are cash accounts, stocks, bonds, limited
partnerships, and real estate. The less obvious assets are
life insurance proceeds (regardless of the beneficiary, if
the policy was owned by the decedent), joint accounts, and
tangible personal property.
INCOME TAX REPORTING
Federal - A final 1040 for the decedent is due for the year
of death. Also, a form 1041 will be filed for the decedent's
trust estate which will be due for the period of the date
of death to the end of the year, and then annually thereafter
until the close of the trust estate. Ongoing 1041s will be
required for Marital and Credit Shelter Trusts, if created
under the terms of the decedent's revocable trust.
Florida - There is no Florida income tax but the executor
of the decedent's estate should consult with an accountant
to determine whether an intangibles tax is due.
TIME FRAME -- Generally, when a federal
estate tax return is due, the tax reporting in connection
with the estate administration process takes approximately
two years from date of death. If no federal return is due,
the time frame is greatly reduced.
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