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estate tax return - must be filed within purposes, and so we advise our clients
nine months of the death of decedent to obtain several extra copies. The
(or within the six months extension executor will need these certificates
window if one is timely applied for). in order to transfer title to any assets
(i.e. funds in bank accounts, sell real
The probate or administration estate), and to open the estate bank
processes are formal judicial account.
proceedings which take place in the
decedent’s county’s Surrogate Court. TIP: If you are the fiduciary of a
If you are the nominated executor, loved one’s estate, check the office
or a person eligible to serve as of unclaimed funds via the New York
administrator, you should consult State Comptroller’s website to see
with your attorney and provide the whether the decedent is entitled to
information and documents listed any “unclaimed funds”.
above. Your attorney will prepare the
petition for probate or administration. Once the executor or administrator
Filing fees are paid on a sliding scale has located and gathered all of
depending on the size of the estate. the assets of the decedent, they
will manage the funds in a prudent
Under New York State law, certain manner, pay off the decedent’s debts
Irrevocable Life Insurance Trusts the assets from your heirs’ potential people are entitled to notice of the and distribute the funds as per the
The Irrevocable Life Insurance Trust creditors. probate or administration of the estate terms of the decedent’s will, or else
(“ILIT”) is a unique instrument that - namely the beneficiaries, fiduciaries, as per the laws of intestacy of the
serves several important purposes, Estate Administration and “heirs at law” of the decedent. State of New York.
two of which we will touch on here. The following documents should be The probate or administration process
Many people are unaware that the brought to your attorney after the will be substantially simplified if For purposes of brevity, we
proceeds of life insurance policies demise of a loved one: these individuals consent to the have substantially simplified
are considered part of your estate relief requested in the probate or the description of the probate
for estate tax purposes. By using a 1. An original or certified copy of a administration petition, and waive or administration process. The
properly drafted ILIT, however, you will death certificate (look for a raised the issuance of formal process. This proceedings can be lengthy, and
bring the value of any life insurance seal) will be the case where there are no may involved hard-fought litigation,
polices you might hold outside of your 2. The original will (if any) objections to the appointment of the especially in the case of distant heirs,
estate for estate tax purposes on both 3. A funeral bill marked “Paid” name fiduciary or applicant, and there or family disputes. There are many
the state and federal level. For those 4. A basic family tree with contact are no objections to the disposition subtle nuances to the advisable to
of you whose net worth puts them at information for close relatives of assets provided for in the will. If meet with an experienced attorney to
or near the estate tax threshold, an the persons entitled to notice do not discuss the best way to proceed, and
ILIT is a necessary part of your estate A list of assets including: consent to the relief requested in to guide you in your decision making
plan. the petition and waive the issuance process.
1. Real Estate of formal process, then the Court
An ILIT will also permit you to direct 2. Bank and Brokerage Accounts will issue a “citation” to appear in We hope that this article has been
the disposition of your life insurance 3. Vehicles Court on a certain day, and each non- informative and useful to you. If you
proceeds in a more specific manner 4. Retirement Accounts consenting person must be formally have any questions, or would like
than simply designating a beneficiary. 5. Annuities served in accordance with New York clarification any of the above points,
Frequently, our clients have their 6. Insurance Policies State law. please do not hesitate to contact
ILIT benefit their spouse during the 7. Valuable Collections _________ at 000-000-0000 or 000-
spouse’s lifetime, and upon the death Presuming the administration or 000-0000.
of the spouse, benefit the children The above documents and information probate petition is accepted, the
of their marriage. Since an ILIT is a will assist your attorney in drafting the executor or administrator will receive
trust, you can give specific directions probate or administration petition for their letters testamentary from the
in your trust instrument as to how the your loved one’s estate. It is important Surrogate’s Court. Original certificates
assets should be used, and protect to note that the IRS form 706 - the will be required for a variety of

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