Upon Death

• Locate will and codicils.
• Carry out funeral arrangements.
• Make a preliminary inventory of decedent’s assets and liabilities. Determine which assets are probate assets. If the value of the probate assets is high enough to require probate under state law, apply for probate.
• Verify deadlines for probate and tax filings: (1) estate tax return, (2) gift tax return for decedent’s final year, (3) fiduciary income tax return, (4) decedent’s final Form 1040, and (5) Forms 1040 for preceding years unfiled by the decedent. 
• Obtain an employer identification number (EIN) and state ID number for the decedent’s estate if required. 
• Notify IRS of fiduciary relationship (Form 56 may be used). Until the IRS is notified of the relationship, notices of tax liability will be sent to the taxpayer’s last known address. 
• Set up accounting system. Allocate income between decedent’s final return and estate’s income tax return and to determine which income is subject to federal estate tax.
• Locate and arrange to collect probate property. Open an estate checking accounting and transfer assets to cover expenses.
• Notify all payers who issued Form 1099 to decedent in the previous year of decedent’s death. For probate assets, provide estate EIN and request that after-death income be reported to the estate. For nonprobate assets, provide recipient’s SSN and request that after-death income be reported to the recipient. 
• Prepare a detailed inventory and valuation. Arrange for appraisals of property if required for IRS form 706 or for the probate proceeding. If IRS form 706 is required, nonprobate assets must also be valued. 
• Hold and manage property during probate and collect income. 
• If the estate is solvent and distributions are authorized by state law: pay administrative expenses as incurred; pay claims as they are settled; make partial distributions to beneficiaries if appropriate. 
• Sell property if assets are needed to pay expenses or claims or if distribution in kind is not practical (check state law to determine authority to sell).
• File tax returns as they become due. Make estimated tax payments if required for any tax year ending two or more years after decedent’s death.
• (Optional) Request prompt assessment under IRC §6501(d) to shorten the statute of limitations on income tax returns filed by the personal representative from 3 years to 18 months. File Form 4810 separately after the returns are filed. Prompt assessment does not apply to estate tax returns (Form 706).
• (Optional) Request discharge from personal liability for estate tax by writing to the district director [Reg. §20.2204-1]. The IRS must notify the personal representative of any tax liability within 9 months of filing the request or IRS form 706, whichever is later. IRS generally will notify the personal representative whether the return is accepted or will be audited within this time, even without the request.
• After final determination of federal estate tax liability and the expiration of the probate creditor period, prepare to close the estate. Plan for payment of final expenses and income and federal estate taxes.
• Pay any remaining claims against the estate.
• Pay any specific gifts made by will.
• Account to the heirs entitled to share the residual estate, distribute the estate assets according to the terms of the will or state intestacy law, and file to close probate. 
• Notify the IRS that the fiduciary relationship has ended. Form 56 can be used, but is not required.