DUTIES OF A PERSONAL REPRESENTATIVE
(EXECUTOR)
The duties of an Arizona personal representative (executor) may be grouped into several broad categories:
Ascertaining the Estate
Collect the assets of the Estate
Preserve and protect the assets of the Estate
Manage the assets of the Estate
Give notice to beneficiaries and others
Value the Estate for tax and distribution purposes
Prepare and file all necessary tax returns
Pay all debts and expenses of the Estate
Distribute assets to heirs and beneficiaries
Close the Estate
Ascertaining the Estate
Obtain decedent’s Last Will and any Codicils (amendments to a will)
Obtain any letter of instruction from the decedent
Consider anatomical bequests and funeral instructions, if such instructions are included in the will.
Choose an attorney, CPA and any other professional advisors
Consider signing a release that will allow advisors to obtain information they may need to perform their duties
Analyze the Will (with advisors) and obtain an understanding of the decedent’s intent/wishes
Determine whether you are required to obtain a bond
Meet with estate attorney and agree on delegation of duties.
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Fees
Choice of appraisers
Notification requirements
Tax reporting requirements
Opening of safe deposit boxes
Closely held business interests or other unusual assets
Pending litigation concerning the decedent
Obtain the following records, at a minimum:
Death certificate
Bank records
Canceled checks and checkbooks for past 3 years
Income tax returns for past 3 years
All past gift tax returns
Insurance policies and appraisals
Medical information
Credit cards, debit cards, etc.
Securities, traveler’s checks, etc.
Closely held business records
Retirement plan documents
Identify jewelry, fine arts and transportable valuables for inventory and consideration for placement in vault, etc.
Review all insurance policies and consider cancellation, and increased or decreased coverage,
Begin compiling data on inventory of estate assets
Ascertain if any assets are located in other states/countries
Review several years check books for insurance payment information
Collection of Assets
Find and take possession of the estate assets and financial records
Cash on hand and in bank
Personal assets and valuables
Make arrangements with banks and brokerage houses, etc. for changes in account, names, identification numbers, signers, etc.
Arrange for safe deposit box opening:
Bring key
Determine if family members, etc. want to be present
Arrange secure transport if valuables are to be removed
Request insurance proceeds to which estate is entitled
Preservation of Estate
Make security arrangements for decedent’s house, if vacant (and during the funeral)
Make security arrangement for decedent’s other assets, such as business premises
Secure car and house keys and change house locks
Management of Assets
Cancel club memberships and collect prepaid dues
Cancel subscriptions and obtain refund on unexpired portion of subscription
Cancel credit cards, debit cards, etc.:
Inquire whether there is credit card life insurance in effect
Obtain cards from employees, family members, etc.
Consider surviving spouse’s wish to have new cards issued in own name
Set up the estate’s accounting system to account for all monetary transactions subsequent to death. (Savings, checking, investment accounts, etc.)
Perform accounting functions on an ongoing basis
Determine the type and frequency of accounting to be made to beneficiaries
Determine if there were any “death bed” gift checks issued which had not cleared the bank as of the time of death. (Not to be considered as completed gifts as of date of death)
Set up accounting system to keep track of reimbursable expenses incurred by personal representative on behalf of the estate
If a closely held business is involved, arrange for continued operation and/or orderly closing of business
Redeem U.S. treasury bonds
Redeem traveler’s checks
Determine the type and frequency of accounting to be made to beneficiaries
Valuation of Estate
Determine what assets require appraisal
Locate and engage services of necessary appraisers
Obtain appraisals, if needed
Notification
Notify responsible parties of your position as personal representative and change mailing addresses,
Notify bankers and other advisors of decedent’s death
Contact beneficiaries regarding any need for income or desire to defer the taxable income (for tax planning)
Notify beneficiaries of tax basis for assets distributed to them
Tax
File Form 56 to notify IRS of your fiduciary duty
Obtain any needed federal identification numbers for the estate and/or trusts
Determine if decedent had received any property that was subject to estate tax in any other estates within the past 10 years
Obtain information about any prior gifts by the decedent exceeding $10,000 per year/per donee (Review all gift tax returns, Form 709, if available)
For businesses, file Forms 1099, W-2, payroll reports, etc. as required
Request social security numbers, addresses and income tax brackets of beneficiaries.
Request Form 712 information (life insurance statement)
Review estate and income tax planning with attorney and CPA
Obtain information to prepare and file decedent’s final personal income
tax return:
Consider extension of time to file
Consider joint return with surviving spouse
Consider the need for amended returns
File final Form 1040 and pay tax
Consider asking IRS for prompt assessment of tax liability under IRC
6501
Consider need to file gift tax returns, Form 709 for current and past
years
Review income tax returns for as yet undiscovered assets
Complete forms (veterans, survivors benefits, burial allowance, lump sum death benefits, etc. if needed) for claiming benefits due
Review post-mortem tax planning with attorney and accountant to determine the desirability of deferred or prompt closing of the estate.
Consider the need to request the personal representative’s discharge from personal liability for estate tax, under IRC Section 2204
Consider need to contact partnerships in which decedent had interest regarding IRC section 754 elections
Obtain information to prepare and file estate’s income tax return — Form 1041
Consider need for estimated tax payments during the period of administration
Consider the need for extension of time to file the return
Obtain information to prepare and file decedent’s estate tax return (Form 706):
Consider the need to obtain an extension of time to pay estate tax
Make state requests, if needed
Consider the need to obtain an extension of time to file the return
Make state requests, if needed
File federal estate tax return, Form 706, with required attachments
File state estate tax return
Debt Payment
Determine which debts should be paid and which should be contested
Pay expenses of administration (attorney’s fees, CPA’s fees, appraisal fees, personal representative’s fees)
Pay taxes when due
Distribution of Estate
Determine if there are any unusual circumstances warranting early estate distributions
Make distributions to beneficiaries
Distribute specific bequests of tangible personal property
Supervise any selection process required
Consider the need to withhold tax for payments to nonresident alien beneficiaries
Do not distribute funds unless certain all liabilities have been paid and final tax liabilities established
Closing of Estate
Prepare and review the final accounting
Review checklist to ascertain that all required duties performed
Obtain receipts and releases from all heirs and beneficiaries
Prepare and file Closing Statement
