Understanding The Duties Of Estate Administrators
November 14, 2014
Florida residents may benefit from learning more about the general duties of estate administrators as described by the IRS. The estate administrator can be described as the legal representative appointed to act on the decedent’s behalf. Often times, this person is referred to as the executor and may be a lawyer, family member or surviving spouse. In order to manage the decedent’s taxes and other important documents, the estate administrator must be in possession of the Letters Testamentary, which provides the authorization to act accordingly.
Estate administrators are responsible for accounting for the decedent’s assets and debts, and some assets may require an appraisal. The estate administrator is also required to verify debt and creditors’ claims. In addition, the estate administrator is also responsible for ensuring that the decedent’s taxes were properly filed dating back to the year proceeding the date of the death. Separate forms may be required to file income taxes for the estate. Income tax is required if the estate generates at least $600 in income during a year.
The estate administrator is also responsible for filing business taxes and updating the EIN number if the estate operates an enterprise. The IRS also requires the estate administrator to file an estate tax return after assets are transferred from the estate to the beneficiaries. Most of the documents the estate administrator needs access to can be obtained from the IRS.
People who need more information about estate planning and being an estate administrator may benefit from contacting a lawyer. Legal counsel may be able to provide these services or explain any pertinent details the estate administrator may be uncertain about. Lawyers might be able to help ensure that the process is completely successfully and remains a legally binding document after death. These lawyers may also help estate owners explore the differences between the available options like trusts or wills.