Practice Areas

Estate & Trust Administration

A loved one has passed away … what do you do next?

After a loved one’s death, the surviving family members may feel vulnerable and unsure of what to do next.  There are many emotional and legal decisions that must be made.  During this difficult time, it is extremely important that you work with professionals who understand all of the challenging issues you may be facing.  At Fendrick & Morgan, LLC, we are often called upon to assist a family navigate their way through the complexities of an “estate administration.”

The term “Estate Administration” covers all of the financial, tax and related issues that arise and must be managed after a person’s death.   It involves not only the probate of the decedent’s Last Will and Testament, but also an inventory of assets, assessment of liabilities, management of accounts, transfers of securities, liquidation or transfer of real estate, consolidation of assets, establishment of trust and preparation of state and federal tax returns to address income, estate and inheritance tax reporting requirements.   The term “Trust Administration” describes all of the financial, tax and related issues that arise in connection with a Trust.

We represent an Executor or Trustee in the process of administering an Estate or Trust, and we provide an array of services in these areas.  In the Estate administration context, we can assist in the initial Probate proceedings after a loved one has passed and fully service the estate through the process of a final accounting and ultimate distribution.  Likewise, in Trust administration matters, we can handle all funding, tax and termination issues.  We routinely handle complex issues in these arenas, while making the process simple for the family.  Doug and Jamie bring a combined thirty (30) years of experience to this area and offer the highest level of professional service and advice.

We understand that, as Executor or Trustee, you may lack the time necessary to attend to the details of administering the Estate or Trust.  We know that you need expert accounting and tax advice, quick closure of the estate, and to work with individuals who are sympathetic to the emotional issues you are facing.  We further realize how important it is to help you avoid disputes among beneficiaries, and for the administration process to be as easy and straightforward as possible for all involved.

Proper administration of a decedent’s Estate involves a variety of steps.  In New Jersey, the person appointed as Executor in the Will must initially offer the Will for Probate at the office of the Surrogate in the County in which the decedent resided at the time of his or her death.  This is the process by which you are formally appointed as Executor of the Estate.  After being formally appointed, the Executor is charged with collecting the assets of the estate, opening an Estate checking and/or brokerage account, and satisfying any claims against the Estate.  The Executor is also responsible for ascertaining what tax returns must be filed on behalf of the decedent and the Estate, and for preparing and filing such tax returns.  Ultimately, the Executor is charged with distributing the Estate assets to the various beneficiaries.

In order to properly conclude an Estate and be released for their role as Executor, an accounting must be given to all beneficiaries, and each beneficiary must sign a Release and Refunding Bond which is then filed with the Surrogate.  By signing the Release and Refunding Bond, the beneficiaries acknowledge receipt of their share of the Estate, discharge the Executor from further obligation to the Estate, and accept a pro rata responsibility for any proper debts imposed upon the Estate subsequent to receiving distribution.

If you have been named Executor or Trustee of an estate, you need to be advised of the many steps you must take to fulfill your duties and not incur any personal liability.  We are here to listen to your concerns and offer advice.  We can counsel you on tax related and distribution decisions that can help maximize the assets available for distribution to the beneficiaries and avoid family disagreement.   As a firm, we strive to service our clients in the best way possible.  A testament to that service is the fact that a majority of our new clients are referred by existing clients.

Our Goals of Estate Administration

• Guide surviving family member(s), Executor and/or Trustee through the many issues which must be addressed after the death of a loved one.
• Advise surviving family member(s), Executor or Trustee regarding the federal, state and local tax requirements.
• Advise Executor through the probate process, assist with asset distribution.
• Ensure all estate, inheritance and fiduciary tax returns and IRS documents are prepared and filed.
• Minimize taxes through post-mortem tax planning.

What Can We Do To Help?

• Ensure that all probate requirements are satisfied, including qualification of personal representative, notice of probate to beneficiaries and notice to creditors.
• Obtain tax identification number for the estate and trust, as applicable, and prepare appropriate IRS Forms to establish Fiduciary relationship.
• Establish value of estate assets by gathering and reviewing required information pertaining to the decedent’s financial affairs and then assembling supporting documentation.
• Analyze post-mortem planning options, including disclaimers (and the preparation of the same), reaffirmation of documents for disabled beneficiaries, and tax planning.
• Prepare tax returns, including Federal Estate tax, Federal gift tax, State inheritance tax, State estate tax, Fiduciary and State income tax returns and final Federal and State returns for decedent.
• Transfer of assets and accounts, annuities, business entities, securities, retirement assets and life insurance policies into the appropriate names.
• Preparation of deeds and representation in settlements transferring property.
• Preparation of Release and Refunding Bonds for approval of beneficiaries and release of executor or Trustee.
• Preparation of Executor’s final accounting, as necessary, in accordance with the New Jersey Principal and Income Accounting Act.