What do I do now?
When a death has occurred, there is usually a need of
administering the estate of the decedent. In North Carolina this process
is handled through the office of the Clerk of the Superior Court. Not
all estates will require the same administrative duties; some small
estates, under particular circumstances, will not even require administration.
However, some estates will require a great many duties. But in summary
the following is intended to be a check list of duties, not necessarily
in chronological order, in handling an estate. Of course, legal counsel
should be sought for advice on specific matters. The Clerk will provide
many of the forms that are required.
1. Collect important papers, such as the Will, death
certificate, insurance policies, bank account books, automobile titles,
stock certificates, etc.
2. If there is no Will, determine who will be the administrator.
Determine the heirs.
3. Make arrangements with a representative of the Clerk's
office for an inventory of the safe deposit box, if applicable.
4. Prepare the application for "letters" (the
authority of the estate representative to act). An inventory must be
prepared, and values must be assigned to the property.
5. Take the Will (if any) and application for letters
to the Clerk's office. (The Clerk may be asked to help prepare this
application.) The Clerk gives an oath to the "personal representative"
who is to handle the estate and issue him or her letters. Several copies
of the letters should be obtained for use in transferring certain property,
such as bank accounts and securities.
6. Fill out a form to obtain a tax waiver from the Department
of Revenue. This is necessary in order to withdraw some bank accounts,
bonds, etc.
7. Prepare a notice to creditors and have it published
in a newspaper. This notifies creditors that they must present their
claims within three months. Obtain an affidavit of publication from
the newspaper and file it with the Clerk. Mail this notice to all known
creditors of the decedent, and fill out and file an affidavit form.
8. Open an estate account with a bank for use in paying
debts of the estate, administrative fees, etc.
9. Determine the value as of the date of death and transfer
ownership of stocks and bonds. Transfer title of motor vehicles. File
insurance claims.
10. If the decedent was a veteran, he or she may be
entitled to a VA burial allowance. A certified copy of the death certificate
and Form DD214 (discharge paper) is required for this claim. Two or
three days following the funeral, you should call the local Social Security
Office to file your claim for the Lump-Sum death benefit if eligible.
11. Notify IRS of the personal representative's existence
and address. IRS will then send any information concerning the decedent's
taxes to the personal representative.
12. Notify IRS that no further payments of the decedent's
estimated tax will be made.
13. File IRS Form SS-4 to obtain a taxpayer ID number
for the estate. The number is needed for the estate account and also
if a fiduciary income tax return is to be filed.
14. Have an appraisal made of property, as necessary.
15. File a 90 day inventory of property with the Clerk.
16. File the income tax return of the decedent by April
15 of the year following the year of death.
17. Within three and a half months after the end of
each fiscal year of the estate, file fiduciary income tax returns, both
federal and state. An estate is a taxpayer on income which accrues to
the estate, such as interest and dividends, while it is in the process
of administration. It is usually helpful to seek the services of an
accountant in giving advice and in preparing the fiduciary returns.
18. File the federal estate tax return and the North
Carolina inheritance tax return, if required. (for some estates a Certification
form is filed in lieu of an inheritance tax return.)
19. File an annual account with the Clerk within 30
days after the expiration of one year from the date the personal representative
qualified and annually thereafter until the final account is filed.
Produce canceled checks or paid receipts.
20. Make distribution of property to those entitled.
Unless the Will provides otherwise, each person is responsible for inheritance
tax on his share. But the personal representative normally files the
tax returns and forwards the tax. The personal representative should
obtain the tax amount from the persons receiving the property or else
withhold sufficient cash from them to pay the taxes. Obtain written
receipts for property distributed.
21. File petitions with the Clerk requesting approval
of fees for attorneys and commissions for the personal representative.
22. File the final account with the Clerk. Produce canceled
checks or paid receipts. (Usually this will be filed before an annual
account is due, making the final account unnecessary.)
23. Notify IRS that the personal representative's duties
have ended. Notify the surety on any bond that the estate is closed.
24. Close the estate bank account.
