When an executor prepares to settle an estate according to the benefactor's wishes, the Faegre Baker Daniels wealth management team facilitates every step of the administration process, from initiating probate proceedings and opening the estate through final distributions. Our team also assists trustees in the funding and administering of revocable and irrevocable trusts and counsels beneficiaries regarding their interests in estates.
Determining Estate Status
As probate proceedings commence, our team assists in the valuation of the estate, advising on accounting for property interests as assets for the purpose of taxation. Once value is determined, we assess the cash needs of an estate for payment of claims, expenses and taxes.
Managing Tax Issues
Our team counsels the executor or trustee on all tax planning issues during settlement of an estate or administration of a trust, including:
- Income tax consequences in distribution of assets or income from a trust or estate;
- Income tax planning related to appropriate deductions and selection of the fiscal year;
- Payment of estate taxes and expenses through special corporate stock redemption provisions;
- Marital deduction elections under the qualified terminable interest property rules;
- Closely held business exceptions, special farm use valuation and related installment payment opportunities for the tax on closely held business interests; and
- Preparation of any necessary estate, inheritance and income tax returns.
Distributing the Estate
When valuation and tax matters have been resolved, our attorneys facilitate the prompt partial or final distribution of estate assets. We guide executors and trustees in the orderly payment of claims, the disposition of assets, and the distribution of assets and funding of trusts.