Estate Planning Newsletters

I am pleased to write to you during this holiday season, to send greetings, and to offer some information about Tax and Estate Planning.

I have often been asked about the crucial role played by an executor of an estate. After all, many of us are nominated to be an executor in a Will, Yet I find that a limited number of people have an adequate grasp of what is required.

A starting point is to keep in mind that an executor is an individual who has a "caretaker" role over all of the decedent's "probate property", which will ultimately be distributed to the beneficiaries. Property subject to "probate" are those assets that at the point of death were owned solely by the decedent. This would include, of course, property that was at one time "jointly held", but one of the joint owners had previously died.

Probate is usually an unfamiliar process to heirs. Parts of the probate process are institutionally arcane and move slowly. Beneficiaries can easily become suspicious and upset even when they have no cause to be since grief over the loss of a loved one can sometimes ignite anger where least expected. In order to assist the executor, my own undertaking as an estate attorney is in part devoted to reducing tensions by careful explanation about the estate process. Attention by the executor to good communications are essential to prevent small misunderstandings from escalating into major conflicts. Left unattended, such emotions sometimes find outlet in an antagonistic attitude toward the person most visibly associated with that death, which is often the executor. Anger and conflicts within a family are often greatly exacerbated by the process of dividing up a deceased family member's estate, and the executor and the seasoned estate attorney need to work as a team to minimize them to get the estate settlement job completed, and avoid becoming a casualty of intrafamily war.

The actual tasks for which the executor is responsible would include the filing of the decedent's final income tax return, the filing of the estate's form 706, or "estate tax"return, the filing of the decedent's last Will, the necessary due diligence to discover the extent of the decedents assets, as will as debts, paying lawful debts and taxes, and ultimately distribution to heirs and beneficiaries.

It is important to note that while the Federal estate tax exemption will increase to $2 millinon in 2006, the Massachusetts estate tax exemption will top out at $1 million. While the decedent's last Will has jurisdiction over only "probate property", the executor must have complete information about the joint property, life insurance and other "non-probate" property in order to file the estate tax return. Distribution to heirs or even creditors without completely paying all of the estate's tax obligations, subjects the executor for personal liability for such non-payment. In summary, the ability and willingness to keep accurate records, financial acumen, good management skills, as well as, impartiality and communication and mediation skills, are important qualities for a good executor.

My practice continues to grow in the areas of estate settlement and estate planning. I also represent clients in all real estate transactions, as well as contract law, criminal, personal injury, and business litigation. My firm's new web site is http://www.georgefootepc.com/; my new e-mail address is georgefoote@rcn.com. If you know someone in need of legal services, I hope you will recommend me to them. This letter is one of the few "advertisements" I use, as I rely primarily upon recommendations from clients. Thank you for the referrals you have provided in 2005 and I wish you good health, good times, and peace for all of us in 2006.