The Secret Life Of A Deceased Person’s Estate

The estate of a deceased person has a lot in common with a zombie, when you think about it from a certain perspective. The estate comes into existence only after someone dies, and only because there is unfinished business. It is your job, as the personal representative of the estate, and therefore as the protagonist of the story, to keep the estate under control so that it does not sow chaos. Of course, an estate does not eat people’s brains and turn them into estates, but the problems it can cause are enough to give you nightmares. It can start by promising you riches, only to break that promise time and again, until you inherit chump change or nothing at all. Even worse, it can cause conflict, or even estrangement, between family members. When it does this, it is usually through the thing that our society fears the most, namely ambiguity. If a family member’s will has listed you as personal representative of an estate, do not fear. You can rein in the estate, but you can do this most successfully by understanding and respecting its independence. If the task still seems intimidating, contact an Orlando probate lawyer.

The Estate Has Its Own Identification Documents

If a person’s Social Security number could continue to function after the person attached to it died, it would truly be an undead scenario. Your estate is not you, and Social Security numbers are only for living people. An estate is a legal entity unto itself, much like a business or nonprofit organization is. Therefore, as soon as the court formally appoints you as personal representative of the estate, your first action is to apply for a taxpayer ID for the estate. The application form is only one page, and one of its questions asks you to check a box indicating the entity type. You should choose “estate,” but someone who was establishing a business might choose, “partnership,” “corporation,” or, “limited liability company (LLC).”

The Estate Can Make Money

As with businesses, the first thing you do after the IRS issues you a taxpayer ID number for the estate is to open a bank account for the estate. You as the personal representative have the right to make transactions from the estate. Mostly, this means paying its taxes and debts as the probate course proceeds. Estates can also receive income, such as if the decedent’s investments are still making money or if the decedent was a plaintiff in a pending lawsuit, so that the recipient of the settlement will be the estate.

The Estate Is Only an Independent Entity Until the Probate Court Dissolves It

The estate’s time as a legal entity was always meant to be temporary. Once the unfinished business has finished, the probate court will dissolve the estate, meaning that the estate settles. Any money in the estate’s account at the end of probate will go to the heirs.

Contact Gierach and Gierach About Probate for the Faint of Heart

An estate planning lawyer can help you if you are worrying about probate getting out of control.  Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.

Source:

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