Once you are appointed as Personal Representative, there are a number of tasks to set about as soon as possible.
Obtain a Federal EIN Number from the IRS for the Estate. All financial activity of the Estate occurs under this number, not the decedent’s Social Security Number. More on EIN Number below.
Discover non-estate assets and encourage beneficiaries to make direct claims with financial institutions for any account/policy where they are named as joint owner, beneficiary, POD or TOD (Payable on Death/Transfer on Death). These assets are not part of the Probate Estate.
Once the Estate has cash, open an Estate Checking Account. All transactions for the Estate should be deposits or disbursements from this account going forward.
Keep careful records of all income and expenses of the Estate. Transactions should be done in/out of the Estate Checking Account whenever possible.
If there are any bank, brokerage, securities or mutual fund accounts in the decedent’s name (with no joint owner or beneficiary named), close those accounts and consolidate those assets to the Estate Account. Be sure to obtain statements for the accounts from the period covering date of death to closure.
For brokerage or mutual fund accounts, request the financial institution also produce a Date of Death Valuation Report.
If there is a property and you plan to sell it, then it is generally prudent to do so as soon as practicable. Obtain the current Fair Market Value from the tax assessor or have an appraisal done. Keep track of all expenses of insuring, carrying, maintaining and cleaning out the property.
If there is a vehicle or vehicles, you should ascertain the Fair Market Value using NADA or Kelly Blue Book. If you plan to sell the vehicle(s), then it is generally prudent to do so as soon as practicable. Keep track of any related expenses until sold. If you plan to keep any of the vehicles to distribute to heirs in lieu of cash, transfer the registration as soon as practicable.
Cancel all memberships, subscriptions and auto-payments. Request refunds where appropriate (insurance, memberships, subscriptions, etc.). Forward mail as appropriate. Be sure that income taxes are current and, if appropriate, file a final tax return. Be mindful of which debts must be paid and, if so, when. If you have hired an attorney, consult them prior to addressing any debts of the decedent.
Approximately 90 days following appointment, the Personal Representative will be required to file an Inventory of all Estate assets and their exact values as of date of death. More on this later in our Guide.
The Personal Representative will be required to file an Administration Account no earlier than six months, but no later than nine months, from their date of Appointment as Personal Representative, showing all activity in the Estate from date of death forward. This is extremely complex and often requires the assistance of a competent Estates and Trusts attorney. More on this later in our Guide.
Distributions may be made to heirs only after filing the Final Administration Account, which will be audited and Accepted by a Judge.