Planning Ahead
Deborah Miller, JD, Sr. Director of Planned Giving, West Virginia University Foundation
Although it is a process
that goes on every day,
administering an estate is
not something that most of
us have experience doing.
The first step is to locate the
will of the person who has
died. The assets it will control through this legal
distribution process are known as probate assets.
The will should include the name(s) of those
persons or institutions that will have the authority
to handle the probate administration. Such an
individual or entity is the executor (or executrix).
A trust document may also be available and will
govern the how those assets will be distributed. If
no valid will or trust can be found, West Virginia
intestacy laws will control how the probate
estate property will be distributed. The person
or institution handling the estate administration
when there is no valid will is an administrator (or
administratrix).
With or without a will, some assets will be
controlled solely by contractual arrangements,
such as life insurance, retirement accounts, jointly
held property and assets owned by a trust. If a
trust is part of the estate plan, the person or entity
which will handle the trust is the trustee. Often the
beneficiary of insurance and retirement funds is the
estate. In that case, the proceeds will be probate
assets and will be governed by the will’s terms. If a
person or nonprofit organization is the beneficiary,
the proceeds will not be included in the probate
assets.
Generically, executors and administrators are
referred to as personal representatives. If a will is
available, it must be taken to the courthouse in the
county where the decedent was a resident. At that
point, the probate process, which gives legal effect
to the will’s provisions, will begin. Even if no will
is found, the person who will qualify to become the
personal representative must go to the courthouse
to start the process.
An oath of office is required by state law. A
surety bond may also need to be purchased by
the personal representative, using funds from the
estate, to protect the estate’s creditors and heirs,
unless this requirement has been waived by the
terms of the will.
Among the first tasks is the requirement to
complete the West Virginia estate appraisement
form within the following 90 days. All of the assets
owned by the person on the date of death will be
included in the estate. The estate’s assets will be
divided into two categories: probate (controlled
by the will) and non-probate (not controlled by
the will) assets. A “date of death” value must be
placed on all assets for official purposes.
A federal estate tax return will be required for a
person who dies during 2014 when the gross assets
of the estate are $5,340,000 or more (spouses
have a combined $10,680,000 federal estate tax
exemption during 2014 if both die during that
year). An alternative valuation date of six months
after the date of death may be used for the federal
return.
In the next column we’ll review other
responsibilities imposed on a personal
representative so that your familiarity with them
can allow you to make a beneficial choice for your
own estate.
That’s good planning.
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West Virginia Farm Bureau News 11