 |
 |
Timetable for Administration
Probate is usually only one aspect of estate administration. Resolution of income tax, gift tax and estate tax issues can also constitute part of estate administration. Shortly after the appointment of the estate’s personal representative, the Register of Probate will publish in a local newspaper a notice to the decedent’s creditors. To expedite the claims process, the decedent’s creditors may be given personal notice, by mail, of the decedent’s death so they can present any outstanding bills for payment. When we represent a personal representative, we gladly assist with these notices.
Maine law requires that every decedent’s estate remain open for a period of time (usually less than a year) to permit creditors and other interested persons to come forward and present their claims. In addition, the size of an estate can affect the duration of estate administration. If the gross estate (a tax-related term that describes not only probate assets but also assets that do not pass under the decedent’s will) is under the State of Maine exemption (currently $1,000,000), it is often possible to close the estate administration after nine months have elapsed since the decedent’s death. If the estate is large enough, however, to require the filing of either a Maine or a federal estate tax return, such early closure is not possible. Please see the topic Estate Taxes below for a detailed description of the threshold amounts for filing federal and Maine estate tax returns. These amounts, known as “estate tax exemption equivalents,” are different for federal estate tax purposes and Maine estate tax purposes.
If a federal estate tax return is filed, the estate must generally be kept open until the Internal Revenue Service notifies the personal representative (by means of a Closing Letter) that the estate tax return has been accepted and that no additional estate tax is due. This notification (or negotiations with the IRS) usually occurs between 15 and 27 months after the decedent’s death. If only a Maine estate tax return must be filed, the estate often may be closed within a year of the decedent’s death. Until both the federal and Maine tax aspects of the estate have finally been settled, however, the estate must remain open. In some cases, the delay in receiving a Closing Letter from the IRS means the estate administration can take up to three years.
Even if the decedent’s estate must remain open for a prolonged period, it may be possible to distribute many of the assets before closure of estate administration. The extent of the potential federal and Maine estate tax liabilities, the nature of the estate’s assets and the identity of the beneficiaries of the estate will be important factors in determining whether substantial partial distributions from the estate are possible before the estate is closed. When we represent a personal representative, we discuss with him or her the possibility of making partial distributions from the estate and the anticipated timeframes applicable to the estate.
The law firm’s state-wide practice is restricted to drafting wills and trusts of all types, advising individuals on matters of gift tax, estate tax, generation skipping transfer tax and fiduciary tax, probating estates, administering trusts, advising individuals on business succession planning and wealth preservation, representing parties in probate and trust litigation matters, counseling individuals involved in guardianship and conservatorship matters and advising charitable organizations.
This web site is for general information purposes only and is not intended as advertising. The information presented here is not intended to be relied on as legal advice. If you have a question about a point of law as applied to particular facts, please consult legal counsel. The authors are members of the Maine bar. Use of this site does not create an attorney-client relationship between you and Epstein & O'Donovan LLP
|
|
|
