Estate Administration/Fiduciary Representation
At McGuire Gardner, we do our best to make the administration of an estate as stress-free as possible during what is undoubtedly a very difficult time. If you have been named personal representative, administrator of an estate, or trustee, we can help you understand the complex trust and probate laws and assist you with your fiduciary duties.
The term "Probate" describes the process whereby title to property is transferred from the estate of the deceased to the beneficiaries. If a person dies and has a Will, the process is called "testate" succession. The probate Court will determine if the will is valid, address any objection to the will, order payments to creditors, and supervises the disposition of the remaining estate property. When a person dies without a will (this is referred to as being "intestate") the Court will appoint a person to receive and review all claims against the estate, pay any creditors, and then dispose of remaining property in accordance with the applicable intestate succession laws.
Probating an estate can be costly. The cost can approach 7% of the estate value. To minimize costs, we work closely with fiduciaries throughout the administration of an estate or trust with an eye toward cost-effective resolution of issues, while keeping in mind the family dynamics that are always present. Before opening a probate, we always attempt to determine whether assets may be transferred by alternate means outside of probate. Simplified court proceedings for small estates or petitions to the court may be available to reduce costs. If a probate is required, we work with the fiduciary to ensure the most efficient transfer to the beneficiaries.
We advise and counsel clients in various matters including:
- • Formal probate of a will
- • Estate business matters, including appraisals, creditor claims, and inventories
- • Liquidating estate assets
- • Asset transfers
- • Income and estate tax return
- • Trust administration, including dividing the trust into sub-trusts or assisting the trustee with interpretation of duties
- • Providing necessary assistance to trustees and other administrators
Estate Tax Returns
If you are a personal representative (or trustee) you will need counsel on estate tax issues. The estate of a person who has passed must file an Estate Tax Return no later than 9 months after death. In certain cases, the estate may be exempt from this requirement. Returns that need to be filed usually include:
- • Arizona income tax
- • Federal estate tax
- • Out-of-state returns
- • Federal income tax for fiduciaries
- • Federal gift tax
- • Taxes where the testator owned property
McGuire Gardner works with trust officers, and other professionals when addressing complex tax-planning that must be done after the passing of a loved one.
The tax laws are constantly changing. We strive to stay current on these issues as they relate to estate or trust administration. We counsel clients on a variety of estate tax matters, including:
- • Marital deductions
- • Gift tax law
- • Bypass trust for the protection of tax exemptions
- • Life insurance and maximizing the tax free benefit
- • Avoidance of capital gains tax
- • Retirement benefit planning
With proper planning, you can minimize tax impacts and maximize the value of your estate left to your loved ones.
