ESTATE – All that property (assets and liabilities), be it Real Property, Tangible Personal Property, a Business and its assets/liabilities or Financial Property of a Decedent.
ESTATE ADMINISTRATION - Estate Administration, often referred to as Probate, is the legal process of managing a deceased person's assets and debts after their death. This involves gathering the deceased's assets, paying outstanding debts and taxes, and distributing the remaining assets to the beneficiaries. It essentially involves settling the financial affairs of the deceased.
ESTATE ASSET – Any property, including Real Property, Tangible Personal Property, Financial Property, Investment, Business, etc. where there is NO Joint Owner or Beneficiary effectively named is generally an Asset of the Probate Estate.
ESTATE BANK ACCOUNT – The Personal Representative of an Estate is required to open an Estate Bank Account in the name of the Estate and under the Estate’s IRS EIN Number. It is best practice to do all financial transactions for the Estate in and out of this account.
ESTATE INCOME TAX RETURN – Depending on the amount income earned during the Probate process (from date of death to closing and distribution of the Estate), the Personal Representative may be required to file income tax returns for the Estate. The Federal Estate Income Tax Return is Form 1041. The Maryland Estate Income Tax Return is Form 504.
ESTATE PLANNING ATTORNEY – An attorney who specializes in preparing Wills, Trusts, Powers of Attorney and other Estate Planning Documents. Estate Planning Attorneys tend to have expertise in tax planning, business planning, marital agreements and other related areas.
ESTATE TAX - Estate Tax is a tax paid by an Estate that is over certain asset thresholds. Thus, only very large Estates are subject to an Estate Tax. There is a Federal Estate Tax and a Marland Estate Tax. Not every state has an Estate Tax. There is also a Maryland Inheritance Tax, which is very different that the Maryland Estate Tax. It is more common for an Estate to be subject to the Maryland Inheritance Tax.
ESTATES AND TRUSTS ATTORNEY – An attorney who specializes in Estate Planning, Estate Administration (Probate), related tax matters and sometimes certain areas of Elder Law such as Medicaid Planning.
EXECUTOR - In Maryland we refer to this person as Personal Representative. When one Petitions the Court to open Probate and be appointed Personal Representative, the Court issues Letters of Administration naming that person as the administrator of the Estate. Letters of Administration are proof of one’s Court-Appointed authority to conduct all of the responsibilities of Probate. While this is not a perfect comparison, by way of their Letters of Administration, a Personal Representative is like the Power of Attorney over the Estate.
EXECUTRIX - In Maryland we refer to this person as Personal Representative. When one Petitions the Court to open Probate and be appointed Personal Representative, the Court issues Letters of Administration naming that person as the administrator of the Estate. Letters of Administration are proof of one’s Court-Appointed authority to conduct all of the responsibilities of Probate. While this is not a perfect comparison, by way of their Letters of Administration, a Personal Representative is like the Power of Attorney over the Estate.
EXPENSES OF ESTATE ADMINISTRATION – Generally all disbursements on behalf of a Probate Estate related to the cost of administering (Probating) the Estate. Expenses may include funeral and burial costs, probate fees, the cost of securing a Nominal or Personal Representative Bond, the cost of publishing Notice as required by statute, expenses related to real property or a vehicle until sold or transferred (including mortgage payments, insurance, taxes, HOA fees, maintenance, etc..), postage, fixing up and/or cleaning out real property, paying final bills or debts, preparing and settling final tax returns and more.