1. Check decedent's estate planning files for notes regarding assets.
2. Obtain copies of decedent's most recent income tax returns to look for clues to assets. ("Acting as a detective").
3. Give a questionnaire which mirrors information needed on 706 and State-706 to family (or other knowledgeable person) to complete. ("Don't be a loner". Getting the client involved will help them be more respectful of your job).
4. Obtain Forms 712 from life insurance companies with respect to all life insurance on decedent's life. (Distribution of policy proceeds).
5. Obtain appraisals of tangible personal property and real estate. (Require expert guidance where necessary).
6. If decedent had a partnership interest, write to the partnership to obtain information regarding date of death valuation.
7. If decedent was receiving book royalties, write to the publisher to obtain information regarding date of death valuation. (Other intangibles, patents, copyrights, songs, books, assignable rights).
8. Obtain copies of all gift tax returns filed by decedent. (Put together in assembling the gross taxable estate).
9. Obtain copies of deeds to all real estate in which the decedent had an interest. (Tenancy-in-common v, Joint interests, title examinations, verification etc).
10. If decedent was receiving a pension or annuity, write to the decedent's employer and/or the issuer of the annuity contract to obtain the information regarding contributions and survivor benefits necessary to complete the estate tax returns. (Elective options: installments/annuities).
11. Obtain copies of all trusts in which decedent had an interest as Donor, beneficiary or trustee. (Trustee instructions; know difference -- Revocable, irrevocable trust).
12. If the decedent was a party to a corporate buy-sell agreement, obtain a copy of the agreement. (Closely held business).
13. Value securities and check for dividends of record and ex-dividends.
14. Check with the Attorney with whom you are working to ascertain the following:
- a) Will any disclaimers be prepared and filed? (Date of Death, the period is vesting -- 9 month rule).
- b) Will a generation-skipping election be required? (Give consideration to grandchildren).
- c) Will administration expenses be claimed for estate tax purposes or for fiduciary income tax purposes?
- d) Will surviving spouse take under will or elect statutory share?
- e) Will estate tax returns go on extension?
- f ) If estate value is under State filing requirement, will we file a State-706 anyway in order to get a closing letter needed to have probate account(s) closed?
- g) Will the executor be claiming fees, if fees are claimed on 706? If so, amount of fees?
- h) What are our estimated legal fees, if fees are claimed on 706?
- i ) Will any of the jointly-owned property be excluded by contribution affidavit from the gross estate?
15. Review will and trust for dispositive provisions.
16. If decedent received an inheritance within 10 years of death, obtain copy of 706 for prior estate.
17. Prepare alternate valuation.
18. Have decedent's final individual income tax returns prepared and any necessary gift tax returns prepared.
19. Obtain contribution affidavit(s) from surviving joint owner(s) for any jointly-owned property to be excluded.
20. Check all "charitable" beneficiaries to make sure they have tax-exempt status with IRS. Carried out as well as set-up. IRC §501(c)(3).
21. Prepare summary of assets, liabilities and estimated estate taxes to make sure of sufficient liquidity for payment of estate taxes. (Start here if you wish to check on liquidity for payment of taxes).
Proceed based upon the facts.
Source: ©1993, Massachusetts Continuing Legal Education, Inc.
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