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ESTATE ADMINISTRATION AGENDA

©1997 Reiner, Reiner & Reiner, LLP All Rights Reserved

[Please note that we intend the following material only to inform you of our methods. Some of the material is not in layperson terms. We do not offer the following as legal advice. To protect your interests, you should obtain legal counsel to interpret or apply any law or legal procedure.]

ESTATE OF:

DATE OF DEATH:

KEY PHONE NUMBERS:

SSN OF DECEASED:

SSN OF EXECUTOR:

Court File No. :

Date of Letters:

Urgent matters are printed in bold type

I. AS SOON AS POSSIBLE.

OBTAIN SOC. SEC. NUMBERS OF SURVIVING SPOUSE AND ALL LEGATEES, and EXECUTOR. (Needed for estate tax returns and various other papers.)

A. Immediate Family Needs:

B. Secure the Property: (See EPTL Sec. 11-1.3)

1. Secure the decedent's residence and private offices; remove valuables for safekeeping.

2. Review Insurance.

3. Have tangible personal property inventoried and appraised. Consider notifying IRS District Director under Reg. Sec. 20.2031-6(c) of distribution or sale, to give IRS an opportunity to inspect to determine value.

4. Review insurance coverage for real estate [no deed to beneficiary is necessary; realty is transferred by operation of law, but obtain appraisal for estate tax purposes], automobile, tangible property and liability exposure. Check ownership, payment of premiums and expiration dates of policies.

5. Take possession of checkbooks and passbooks. Cancel credit cards.

6. Get control of mail.

7. Check maturity dates for investments, such as bonds, certificates of deposit, time deposits and tender offers.

8. Review outstanding leases, including rights to cancel or renew or extend the terms.Cancel open leases.

9. Review other outstanding contractual obligations. Cancel utilities.

10. Consider tax returns coming due or overdue. Apply for extensions if necessary. No estimated installments due after date of death, except for tax of surviving spouse, if any.

11. Consider execution of engagement letter with fiduciary.

C. Commence Probate or Administration Proceedings:

1. Locate the Will, if any. If the original Will is in the decedent's safe deposit box, obtain an order to open the box under SCPA Sec. 2003. (Or new alternate procedure?)

2. Review the Will for its dispositive scheme and for information as to assets, beneficiaries and witnesses. Tax apportionment clause? Pre-residuary bequests:

3. Identify any potential probate or construction problems, for example, duplicate Wills, interlineations or mutilations.

4. Identify distributees and other persons required to be cited in proceedings; contact witnesses; prepare and file necessary papers.

5. Consider an application for preliminary letters testamentary (SCPA Sec. 1412) or letters of temporary administration (SCPA Article 9), if letters are to be delayed and authority is required in the meantime to act for the interests of the estate.

6. For estate's up to $ 20, 000, consider use of the Small Estates Act (SCPA Article 13)as an alternative to probate.

7. Probate Check List:

PETITION

If spouse is deceased, then so state in ¶ 6 (a)

1. Decedent's domicile - N.Y. County (yes) (no)

2. Petitioner's citizenship - U.S. (yes) (no)

3. Date of will - correct (yes) (no)

4. Distributees - Item 5 conforms with Item 6 (yes) (no) For unknowns-Attorney General & Public Administrator (yes) (no) For 1st cousins or more remote. (yes) (no) [No GAL necessary if PA is necessary, since PA stands in shoes of 1st cousins]

5. Affidavit of kinship (petition alleges only one distributee or distributee(s) remoter than nephews(s) with family tree Form FT-1 [Rule 207.19(c)] 5 (a) Remaindermen of Trust to be listed in ¶ 7 (a)

6. Letters of trusteeship (yes) (no)

7. Petition verified, oath and designation (yes) (no)

8. Jurisdiction accepted (only non-N.Y. but within U.S.) (yes) (no)

9. Attorney General to be cited on behalf of unknowns [or charities?], even if preresiduary, unless Public Administrator is being cited, in which event Attorney General gets only a notice of probate. In Estate of D., ATTORNEY GENERAL had to be cited; in Estate of A.,, ATTORNEY GENERAL was moved from 6 (a) to 7(a).

DEATH CERTIFICATE

1. Decedent's domicile same as petition (yes) (no)

2. Informant's name & relationship and decedent's marital status vs. petition-same (yes) (no)

ATTESTING WITNESSES

1. 2 for will and each codicil (yes) (no)

2. Affidavits (under most circumstances) or depositions (yes) (no)

3. Date of will correct in depositions or affidavits (yes) (no)

4. Notarized affidavits in U.S. (commission expiration indicated) or abroad at US consulate or with apostille attached [Can't be notarized by one of the witnesses or beneficiaries] (yes) (no)

5. Queens Co. requires personal examination if will dated within 90 days of death, unless all interested parties are adult and competent and sign waivers and consents. COPY OF WILL

1. Date of will__________________Codicil(s)______________ 2. Date of execution________________________ 3. Affidavit of correct copy - will, codicil(s) (yes) (no)

CITATION

1. All parties are listed other than who waived (yes) (no)

2. Correct date of will (yes) (no)

3. Citation to State Tax Commission required if decedent is a non resident; prepare stipulation reserving domicile and contact atty. for State Tax Commission.

4. Attorney General to be cited on behalf of unknowns or charities, even if preresiduary, unless Public Admin is being cited, in which event ATTORNEY GENERAL gets only a notice of probate.

5. Proof of service on an individual must contain non-military service affidavit and all proofs must indicate that copy of last will was delivered. Proofs must be complete within 120 of filing petition.

6. Order of mailing no longer necessary (Eff 9/1/95).

Chronology: not later than 2 days before return day, file all proofs of service; Return date comes; then; then receive public administrators report; then service notice of settlement on P/A; then file proposed decree.

PERSONS UNDER DISABILITY (INFANT, INCOMPETENT, ETC.)

1. Guardian ad litem See SCPA Sec. 307(3) & 309(3) as to infants

2. Order of designation (supervisor) Sec. 403(3) as to spouse in probate estate <50k

3. Consent of guardian ad litem

4. Order appointing guardian ad litem

5. Report of guardian ad litem

6. Affidavit of Due Diligence Search; order of publication [See forms file "Due Diligence Affidavit"]. Arrange publication through JP&R Adv. (267-6698; fax 608 2147) who will also serve PA and ATTORNEY GENERAL.

7. Guardian to execute waiver of notice of settlement of probate decree, which must contain provision for Guardian's fees.

WAIVERS

1. Correct name of decedent (yes) (no)

2. Correct date of will (yes) (no)

3. Acknowledged in U.S. (commission expiration indicated) or abroad at U.S. consulate or with apostille attached (yes) (no)

4. Estate tax waiver - non domiciliaries (yes) (no)

5. Obtain taxpayer ID numbers of all legatees

NOTICE OF PROBATE

To be mailed to all legatees, including remaindermen of trust, successor and substitute fiduciaries, etc., who are not required to be cited. Obtain taxpayer identification numbers of all legatees when mailing covering letter. Minors get notice. Separate notice goes to "John Smith, on behalf of Steven Smith."

OTHER REQUIREMENTS

1. Rule 207.19 (c) Family tree & third party affidavit if only one statutory distributee or only distributees more remote than siblings or if distributees are grandchildren, in which case their lineage must be set forth.

" The deceased was married only [once] in his life." or "...twice in his life, first to X, which marriage ended by....., then to Y."

"The deceased never had any children, natural or adopted" or " the deceased had only ___ children, namely ...., and no other children, natural or adopted. " 2. Rule 207.19 (d) Affidavit of due diligence if unknowns exist. 3. Rule 207.19 (g) Fiduciary/attorney to affirm that he is an attorney, that his firm will act as counsel, and (if applicable) that he was the draftsperson. 4. Court may require attorney/fiduciary petitioners to submit affidavit as to length and nature of P's association with the decedent and his family prior to the preparation of the Will; reasons given by decedent for choosing an attorney as fiduciary instead of one of the legatees; conversations between the decedent and the P concerning the fees that would be charged and the commissions that would result to the fiduciary from the appointment. In Queens, copies of notes made connected with the preparation of the Will must be attached.

DECREE

(Kings Co. Surrogate's. Court prepares its own form of decree)

1. Stamped, self addressed envelope to be submitted with filing. 2. Correct date of will (yes) (no) 3. Correct letters - testamentary and trusteeship (yes) (no) 4. Revoke preliminary letters or Letters of Administration or Letters of Temporary Administration (yes) (no) 5. Add decretal paragraph if State Tax Commission reserves rights. 6. If Guardian appointed or if P.A. appeared, include language allowing his fees. 7. Settle Decree or obtain Waiver of Notice of Settlement from all parties who have appeared, e.g. P.A., G A L or Atty. Gen. [Notice of Settlement must be served personally not less than 5 days or by mail not less than 10 days before the settlement date.]

II. WITHIN 10 DAYS, NAMELY BY_____________________________.

A. Marshall the Assets:

1. Locate assets.

(a) Confer with the Family.

(b) Check the decedent's attorney's records.

(c) Open the decedent's safe deposit box: submit Form ET-92 (formerly AU 92) (Application for Release of Contents of Box) with photocopies of letters testamentary, death certificate and last will. Send to Albany office of State Tax Commission. Send inventory to State within 5 days of entry into box. Appointments with jewelry appraiser and bank?

Obtain New York estate tax waivers for securities and bank accounts over $ 30,000 per bank, or life insurance or employee benefits over $ 50,000 per company (NYS Estate Tax Form ET-30 if w/in 9 Mos. of DOD.Form ET-99 Waivers to be completed by us. Send with certificate of letters and photocopy of death certificate. For deaths after 5/25/90, Form ET-85 if 9+ Mos. elapsed ; latter may be used by NOK if no proceedings). No waiver needed for asset held by decedent and surviving spouse as the only joint tenants. Estate tax information (800) 641 0004 or 518 457 0079; Status/ Waivers (Mr. Baker) (Audit Group 3) 518 457 3155, FAX 518 457-6204; Adm 518 457 6598; FAX 518 457 6204. Estate tax forms (800) 462 8100. Address for applications: NYS Estate Tax, Processing Center, -P.O. Box 5556, NY NY 10087-5556.

For non-residents, to obtain NYS closing letter, file Form ET-90 and ET-141.

(d) Send a letter to local banks inquiring as to bank accounts and safe deposit box.

(e) Review checkbooks and income tax returns for information as to assets.

(f) Search the premises.

2. Gain control of assets.

(a) Reregister bank accounts and securities in the estate name, or in nominee name. (See EPTL Sec. 11-1.6 and Sec. 11-1.10).

(b) Apply for life insurance payable to the estate.

(c) Make Blue-Cross, major medical and Medicare claims, and applications for refunds on cancellation of any insurance or magazines.

3. Value realty, cash and securities as of date of death.

4. Sale of physician's practice: records belong to estate, not patients; however, prospective purchaser may not have even patient's name without first obtaining patient's consent. Est. of Finkle, 395 NYS2d 343, Surr. Ct., NY Co., 1977.

B. Begin Other Administration:

1. (Eff 9/1/92) Set off as not part of the probate estate the following exempt property, under EPTL Sec. 5-3.1: 10K Household articles, including piano & computer; 1K library, pix, software; 15K animals & tractor; 15K auto (w/option to pay excess to acquire it); cash etc. $15K. These vest at death in surviving spouse or orphans under 21.

2. Consider the provisions of the Will and EPTL Article 11 as to the fiduciary's powers and duties, for example to continue the decedent's business, to retain assets, or to sell or reinvest assets and to hire agents such as investment brokers, accountants or custodians.

3. Consider an application for continuation of the decedent's business under SCPA Sec. 2108, if the decedent was the sole owner and the Will does not authorize continuation. If executor continues the business, rather than liquidating it, it is at his personal risk in case it fails. He can not delegate administrative decisions.

4. Determine estate cash requirements.: Total: ___________________

(a) Determine funeral expenses.

(b) Obtain statements of balances due at death on mortgages and loans payable..

(c) Review mail for current bills.

(d) Estimate administration expenses, including attorney's fees and commissions.

(e) Make a preliminary determination of Fed and NY estate taxes owing and proper apportionment of estate tax liability under the Will or EPTL Sec. 2-1.8.

(f) Total the dollar amount of bequests under the Will.

(g) Determine any need for residuary estate assets by the beneficiaries during estate administration.

5. Consider methods of meeting estate's liquidity needs.

(a) Consider sale of assets, particularly volatile securities or odd lots or non-income producing assets.

(b) Withdraw funds from time deposits without penalty for early withdrawal.

(c) Consider the possibility of a Section 303 redemption of the decedent's stock in a closely held business.

(d) Consider provisions for deferral of payment of estate taxes (See IRC Sec. 6161 ff.).

(e) Consider actual use valuation of farm or closely held business real property under IRC Sec. 2032 A, to reduce estate tax otherwise owing.

6. Consider desires of residuary beneficiaries for retention of assets for possible distribution in kind.

(a) Consider obtaining indemnification or hold harmless agreement to protect the fiduciary from a loss in value before distribution.

(b) Consider liquidation of assets beneficiaries do not necessarily want to receive in kind.

(c) Consider appropriate reinvestment of proceeds.

C. Consider Tax Filings:

1. Apply for an estate identification number from the Internal Revenue Service (Form SS-4).

2. File a notice of fiduciary relationship (Form 56) with the District Director.

3. Apply for a releases of lien on real estate ($ 25 fee to NYS). Federal Form 4422 to be filed in IRS District Office, not Holtsville.

4. Consider the estate's possible liability for sales, gift, employer, and foreign death taxes.

5. Consider requesting audits of previously filed tax returns.

6. Consider termination of the decedent's Subchapter S Corporation election if the decedent owned more than half the outstanding shares of the corporation. (See IRC Sec. 1362(d)(1). Adoption of fiscal year for estate may permit retention of or change to fiscal year for S Corp, thereby deferring reporting of S Corp income by shareholders.

III. WITHIN 3 MONTHS, NAMELY BY______________________________:

A. Develop a Post-Mortem Tax Plan.

1. Select a fiscal year for estate income tax purposes and consider income tax options..

(a) Consider a short first year. Advantages: Extra $ 600 annual exemption, use of low graduated rates ; Disadvantage: cost of preparation of extra return; doubling up of beneficiary's income in final year (12-month year would allow tax payment to be delayed by estate or allow beneficiary to pay tax in a later year).

(b) Plan for taking deductions early, i.e, within the fiscal year,for example by application for advance payment of commissions under SCPA Sec. 2310 or 2311.

(c) Consider the timing of discretionary distributions of DNI to beneficiaries, and possible income splitting between the estate and beneficiaries. Consider an early distribution of the estate to the surviving spouse to shift income into the final joint return, perhaps to be offset by the decedent's expiring carryovers. Consider estate's maximum 39.6% rate on income of more than $ 7,500. All distributions carry out DNI except

i) specific bequests, and

ii) cash legacies payable in not more than three installments.

Consider making Sec. 643(e)(3) election to recognize appreciation and pay capital gains tax on property distributions to beneficiary, who will then have a stepped up basis for the assets received. Allocate IRD (accrued interest, CG on installment sales, accrued commissions, share of pre-mortem partnership earnings and accounts receivable, unused vacation pay, noncontributory portion of annuities, pension, profit sharing, Keogh and IRA plans, deferred comp and nonqualified stock options) to charitable legatee (which, unlike an individual legatee, will pay no income tax when IRD is received) less DRD (ordinary & necessary business expenses, interest accrued and payable, accrued realty tax, expenses for production of income). Capital gains are distributable to beneficiaries as DNI in the final year of the estate. In addition, they may be distributed in each year of the estate (other than the first year) if the fiduciary establishes a practice a practice of distributing it.

(d) Partnership should made a Sec. 754 election if estate tax value of decedent's interest exceeds the income tax basis. This steps up the basis of the partnership assets as to the estate. [Sec. 743].

2. Consider whether to take administration expenses (they are not subject to 2% floor) as deductions on estate income tax returns or estate tax returns. Deductions related to income in respect of a decedent are deductible on both estate and income tax returns. Expenses are only deductible on the estate tax return unless a waiver (stating that expense has not been taken or allowed as an estate tax deduction and all rights to do so are waived) is filed in duplicate with the Form 1041.

Expenses allocable to municipals disallowed for income tax purposes should be deducted on Form 706.

Consider EPTL Sec. 11-1.2 (Warms adjustment) if deduction on income tax returns rather than estate tax returns is chosen, so that persons receiving income tax benefits may contribute ratably to reimburse estate principal for resulting increase in estate tax payable by principal, unless last will provides otherwise.

3. Consider possibility of alternate valuation on estate tax returns, and its impact on the basis of estate assets for purposes of determining capital gain or loss on eventual sales.

4. Consider whether to deduct decedent's post mortem medical expenses paid within one year after death a) on the decedent's final Form 1040, or b) on Form 706.

4. a. Consider effect of suspended passive losses. Activity should be valued at full value. Suspended Sec 469 losses are deductible to the extent of the excess of the activity's estate tax value over its adjusted basis. The remaining suspended loss expires without tax benefit. Obtain the active-participant exception to passive loss rules during the first two years of the decedent's estate under Sec.469(i)(4)(A).

4. b. The unrecovered basis in an annuity contract is deductible on the final Form 1040. Any excess basis over other taxable income is a NOL eligible for carryback to prior income tax years. Also deduct on final return the unamortized balance of any loan cost.

4. c. Gain of $ 125,000 on sale of principal residence may be excluded on final Form 1040, with consent of surviving spouse.

4. d. Consider filing married-filing-separate return, rather than joint return.

5. Elect to report accrued interest on discount type E or EE USA savings bonds (and similar obligations described in Sec. 454 on either a) the decedent's final Form 1040, or b) the estate's income tax return. If former is chosen, then the income tax liability is a Sch. K deduction on Form 706 and neither the estate nor any beneficiary is bound by the election.

6. Consider:

(a) The availability of the unlimited estate tax marital deduction under the Will. Caveat: Alien spouse will not qualify unless she creates QDOT (Sec. 2056(d)(5) and 2056(d)(2)(B)) or becomes a citizen before the return is filed, provided she resided in the US at time of death.

(b) The possibility of claiming a marital deduction for"qualified terminable interest [QTIP] property." Secs. 2207, 2207A and 2056(b)(7).

(c) The possibility of a disclaimer by the surviving spouse to take advantage of the decedent's unified credit for estate tax purposes, including disclaimer of jointly owned property. Disclaimer of portion of tenancy by entireties will cause IRS to litigate. Disclaimer and Notice of Disclaimer are to be filed in Court, together with an affidavit of mailing and with the postal service return receipts.Last Will may provide that credit shelter is only $600,000. (language : ". . . provided use of the State Death Tax Credit does not require an increase in the State death taxes paid." But for this language, federal tax on transfer of $642,424 could be wiped out by unified credit and Credit for State Tax; however, the latter credit does require in increase, from $25,500 (on $600,000) to $ 28,046 (on $642,424); therefore, initially, the bypass trust can only be funded with $ 600,000. However, the surviving spouse may correct this by disclaimer of "such amount that the federal taxable estate of the deceased can be increased by reason of the state death tax credit without increasing the federal estate tax otherwise payable." This costs $ 2,546 more in NY estate tax, but allows $ 39,879 more (net) to pass into the bypass trust.

(d) Allocation to Form 706, Sch. K, of a share of joint income taxes due on date of death. Maximum allowable deduction is based on ratio of decedent's tax under married-filing-separately status to the total tax under such filing status, multiplied by the actual joint return tax.

7. Consider most appropriate method of payment of pension or profit sharing benefits from qualified plans, IRA's, etc., taking both estate tax and income tax consequences into account. Consider a spousal rollover election under Sec. 4980(A)(d)(5) of lump sum distributions. IRC Sec. 402(a)(7). 15% excise tax on excess distributions may be avoided if surviving spouse elects to aggregate distributions with her own plan. Sec. 4980A.

8. Consider the estate tax consequences of a possible exercise of the spouse's right of election. See extensive articles in NYSBA T & E Newsletter Spring 1993.

C. Consider Payment of Debts and Legacies.

1. Consider publication of notice to creditors under SCPA Sec. 1801.

2. Consider payment of undisputed debts and also preresiduary legacies within seven months to avoid statutory interest under EPTL 11-1.5, [but only against notarized receipt, release, waiver & consent, and indemnity,on bonding company form, if applicable. If executed by attorney in fact, attach Rule 207.48 affidavit] if the estate is solvent, at the risk of possible personal liability of the executor for claims later asserted before completion of publication of notice to creditors or before 7 months after letters are issued if there is no such publication (See SCPA Sec. 1802). DO NOT PAY ANY LEGACIES IF THERE IS KNOWLEDGE OF UNPAID CREDITORS' CLAIMS (ESPECIALLY PREFERRED CLAIMS BY CITY FOR MEDICAID), EVEN IF NOTICE IS NOT FORMALLY SERVED WITHIN 7 MONTHS OF GRANT OF LETTERS.

3. Consider priority of payment of debts under SCPA Sec. 1811 if the estate may not be solvent.

4. If testamentary trust is funded, arrange for periodic review of portfolio in order to prevent surcharge of trustee(s) for losses sustained.

D. Begin Preparation of Estate Tax Returns and Accounts.

1. Fill in returns to the extent possible.

(a) Consider Schedule R (Generation Skipping Transfer Tax) and allocation of decedent's $1,000,000 exemption to property passing to skip persons.

(b) Schedule J Form 706 deduction for Executor's commissions to exclude non-probate assets, set-off, and any post-mortem income or capital gains items.

2. Begin assembling additional papers to be filed with returns.

(a) Obtain Form 712 from life insurance companies for policies owned by the decedent or payable to the estate.

(b) Obtain balance sheets from previous 5 years for closely held businesses in which the decedent had an interest.

3. Begin to prepare final account.

IV. WITHIN 6 MONTHS, NAMELY BY____________________________:

A. Pay New York Estate Tax (with Form ET-130). Estate tax return due nine months after date of death if AGE exceeds $115,000. Note $ 250,000 exemption for primary residence and 5% credit for value of closely held business interest.

B. Exercise Right of Election if the Surviving Spouse Desires To Do So. Right is 50k or 1/3 of net estate .See extensive articles in NYSBA T & E Newsletter Spring 1993

1. Unless the time is extended under EPTL Sec. 5-1.1(e), the election must be filed within 6 months after letters are issued. Note that exercise may increase marital deduction and lower estate tax.

C. Complete Alternate Valuations.

D. Waive Commissions, if the Fiduciary Desires To Do So. Compare effective estate or income tax rates for deduction versus income tax rates on commission income received by fiduciary. In estates subject to federal tax, commission should be taken, since estate tax rates are probably higher than income tax rates on commission. Where no federal taxable estate, the commission should be waived.

E. If Dollar Amount to Charity is not specified in Will then register estate with Attorney General's Charity Bureau, NYS Dept of Law, 120 Bway, NY 10271 [416-8430 or 8431] under SCPA 8-1.4. on Form NYCF-1. No registration fee but annual reports must be filed in the form of certified copies of Forms 1041. To obtain certificate of "no objection" to be filed with accounting (or fiduciary's Affid under Rules Sec. 207.60 in lieu of accounting), provide Dept of Law with Registration, copy of L/W, 706, accounting schedules, copies of consents of all residuary charities, and a covering letter requesting "no objection" letter.

V. WITHIN 9 MONTHS, NAMELY BY____________________________:

A. File the Federal and NY Estate Tax Returns and Pay the Federal Tax.

1. Review and refine the post-mortem tax plan.

2. Complete and file the Forms 706 (for estates exceeding $600,000) and ET-90 or ET-85 (for estates exceeding $ 115,000). Note $250,000 exemption for primary residence on NY return.

(a) Alternate valuation can be elected on a return if filed timely or within one year after the due date of the return (including extensions). Note that an alternate valuation is unavailable unless the election will decrease both the value of the gross estate and the tax payable.

(b) A 6 month extension of time to file the return may be requested if necessary, under Treas. Reg. 20.6081-1.

3. Pay the tax owing.

(a) Submit "flower bonds" for redemption at par value in payment of tax.

(b) Any application or election for extension of time to pay the tax under IRC Sec. 6161 ff should generally be filed within 9 months of death. The interest on the deferred payments is deductible as an administration expense, preferable, probably on Form 706, because of higher rates.

4. File applications for discharge of the fiduciary from personal liability for the estate tax, under IRC Sec. 2204(d), and income tax and gift tax liability, under Sec. 6905(a) to take effect 9 months after the receipt of the application. [j:\i\dischg.exr]

B. Make a Disclaimer if the Beneficiary Desires To Do So.

1. A disclaimer must generally be made within 9 months of death, to be considered "qualified" under IRC Sec. 2518, so as to avoid federal gift tax consequences. See also EPTL Sec. 2-1.11. Joint property will qualify. Tenancy by the entireties will cause IRS to litigate.

2. A beneficiary under age 21 when the transfer creating his interest is made is allowed 9 months after his 21st birthday to make a qualified disclaimer of the interest, under IRC Sec. 2518.

C. File Inventory under NYCR Sec. 207.20(b) and (c). (Due when 706 is due, with any extension), with SECOND copy of Form ET-90, (with copy of Form 706, if one was filed with IRS) IN SURROGATE'S COURT AND PAYING FEE OF UP TO $1,000 FOR FILING. EXCEPTION if gross estate is > $300K and no NY tax due.. SEE LETTER ADVISING CLIENTS (I\et-90.let)

File Request to Court for Sealing of Inventory and Copies of Estate Tax Returns. Verified, written request by fiduciary is required, which must authorize the unsealing without notice to the fiduciary, upon the further order of the court or, without court order, upon the filing with the Chief Clerk of the Court of a written request by any person who either appears to have a right to the information under Tax Law  994 or would be a proper party to institute a compulsory accounting proceeding.

VII. WITHIN OTHER PERIODS:

A. File the Decedent's Final Income Tax Returns by______________ ___________________________. See Publication 559 worksheet for allocating Form 1099 data, etc.

B. File the Estate Income Tax Returns by________________________ for latest fiscal year ended_________________, paying special attention for the deduction for federal estate tax on income in respect of a decedent (accrued interest, CG on installment sales, accrued commissions, share of pre-mortem partnership earnings, unused vacation pay, noncontributory portion of annuities, pension, profit sharing, Keogh and IRA plans, deferred comp and nonqualified stock options). Long term capital gains are part of DNI on the final Form 1041. Excess deductions on the final return are deductible by the residuary beneficiary as itemized deductions on their returns (subject to the 2% floor). If more than one year's 1041 will be necessary, will estimated tax payments be due?

C. Report to the Internal Revenue Service any asset discovered within 3 years after the federal estate tax return is due, or filed if later, or if the omitted assets exceeds 25% of the reported gross estate, report the asset to the Internal Revenue Service if discovered within 6 years after the return was filed.

D. File Form 4810 to request a prompt assessment of income taxes of the decedent and the estate, to reduce the period from 3 years to 18 months after the request.

E. Commence the Final Accounting Proceedings. Copy of account to be served with Citation on all interested parties. A.G. is a necessary party if a charity is a residuary legatee. Proofs must state that copy of account was served, as must any Waiver & Consent. A.G. gets in addition copy of petition& l/w. Obtain Attorney General's certificate of no objections. Photocopies and mailing of Citation are allowable expenses. Accounting petition must state that Rule 207.2 affidavit filed and State estate tax fixed and paid (or cite State Tax Commission). If attys. fees or commissions improperly taken prior to accounting, request advance payment to be approved by Court nunc pro tunc. Any Waiver & Consent by residuary legatee must recite each and every prayer for relief set forth in petition and citation, e.g. approval of attys. fees in the amount of $.... Realty sold must appear in Sch. A NET of closing expenses, e.g. brokers' comm., RPT, and satisfactions of mortgage and other liens. Attach closing statement.

1. Complete the account after the completion of estate tax proceedings. Claims not rejected in writing prior to the filing of the accounting are deemed admitted. SCPA 1806(4).

2. In the meantime, file a report in the Surrogate's Court if required for an estate not fully distributed within 2 or 3 years of the issuance of letters. (New York Rules of Court Sec. 207.42).

3. Obtain receipt, release, waiver & consent, and indemnity agreement from each general and residuary legatee (on bonding company forms, if applicable), or commence a formal court proceeding.

4.Accounting of Sole Fiduciary/Attorney (Rule 207.60)

Within 12 months of issue of letters (24 months if Form 706 required) attorney/sole fiduciary to file affidavit stating

a) total commissions paid or to be paid and

b) total attorney's fees to be paid. [Optional: Attach affid of services] Court may require full accounting. Except as provided in SCPA 2111, 2310 or 2311, no advances for legal fees or commissions are to be taken until 30 days after the filing of above affidavit.

F. Follow up claims for refund of overpaid estate tax, if any. NYS Refund Unit : 518 457 5751