LAW OFFICE OF STEPHEN CAVANAUGH
  What are the responsibilities of an executor?

  • The executor files the will for probate, usually testifies in
    Court, locates all the estate's property, and then files an
    inventory of the property. If necessary, the executor also
    files the estate tax return.

  • The executor must also pay the estate's legal debts, give all
    beneficiaries a copy of the will and distribute the property
    to the beneficiaries.

   When should I have a trustee?

  • If you want to put your property in a trust,the trustee
    holds title to the trust's property, invests the assets, and
    distributes the principal and income of the trust to the
    beneficiaries. When children are under 18, they should
    have a trustee to manage their property.

   When should I name a guardian?

  • If you have children under 18, someone must look after
    them if their parents are gone.
  • There is a guardian of the person, who is responsible for
    the personal welfare of  a minor or other legal incompetent,
    and sometimes a guardian of the estate, responsible for
    handling any property they might own, similar to the duties
    of the trustee.

   Do I need a will?

  • Yes, to name the person(s) who will perform these duties,
    and specify who will inherit your property, and how much
    they will receive.

  • Is there another way to transfer my property?

  • Yes, with a revocable living trust, which becomes
    irrevocable at your death.

  • Will I have to pay taxes on the estate ?  

  • Beginning in 2012,  the maximum exclusion for all estates is $5.25
    million. The highest tax rate, after the exclusion, is 35%.

  • The current estate tax law will only last until Dec. 31, 2012, unless
    extended.

  • The current exclusion is portable; which means the estate of the
    spouse  who dies last may use both their own and the exclusion not
    used by the estate of the first spouse who died.

  • Assets passing from a decedent to the heirs or beneficiaries receive a
    step-up in cost basis, equal to the property’s fair market value as of
    the decedent’s date of death.  

  • The Federal gift tax is 35%. Each person may give  $13,000.00
    each year, with no tax return necessary, and $5 million during their
    entire lifetime, without generating any gift taxes. This, too, is
    portable; and may be used by the second spouse who dies.  

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  • What costs, other than attorney fees, are involved in probating
    an ordinary will?

  • The Court Clerk charges a fee for the filing of the will,to issue Letters
    Testamentary, and to file the inventory of the estate; there is also a
    publication charge to have the notice to creditors published in a local
    newspaper.

  • Do you accept credit cards?

  • Yes, all major cards.
WILLS AND TRUSTS
PROBATE