Estate and Trust Administration in Virginia (OLD EDITION)

Publication Date: 2013 (View new edition.)
Electronic Forms: 29
Available Formats: Print (387 pages, looseleaf, 1 volume, forms CD)
Product #: 866

Information

  • How does a surviving spouse make the election to claim the augmented estate?
  • What should a personal representative do if a provision in the will is ambiguous?
  • What is the effect of the personal representative’s failure to file the notice of probate?

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From the time of death through completion of the administration process, this important resource provides a framework and forms to guide practitioners who advise executors and trustees.

The coverage includes a discussion of provisions of a will as they relate to the probate process and possible alternatives, tax filing requirements for an estate under both federal and Virginia law, and recent Virginia and federal legislative and case law developments, including new Title 64.2 and the American Taxpayer Relief Act of 2012

Table of Contents

TABLE OF CONTENTS
Chapters and Authors 
Acknowledgments
About the Editors and Authors
Preface


CHAPTER LIST
1. Initiating The Estate Administration Process—Steps Before Probate And Qualification
2. Probate And Qualification
3. Administration Of The Estate After Probate
4. Claims, Elections, And Filings Against The Estate
5. Special Problems In Administration
6. Fiduciary Income Taxation
7. Estate Tax Considerations
8. Winding Up And Settlement Of The Estate
9. Administration Of Trusts
CHAPTER 1: INITIATING THE ESTATE ADMINISTRATION PROCESS—STEPS
BEFORE PROBATE AND QUALIFICATION
  (back to top)

1.1 INTRODUCTION AND DEFINITIONS
    1.101 Introduction
    1.102 Definitions
    
1.2 ETHICAL CONSIDERATIONS
    1.201 Identifying the Client
    1.202 Dual Representation
    1.203 Attorney Fees
    1.204 Scope of Representation
    1.205 Attorney as Personal Representative

1.3 PERSONAL DECISIONS AFTER DEATH
    1.301 Disposition of Remains
    1.302 Funeral Arrangements
    1.303 Payment of Funeral Expenses
    1.304 Death Certificates
    1.305 Obituary
    1.306 Notification of Family Members
    1.307 Organ Donation
    1.308 Autopsy
    1.309 Location of Will
    1.310 Compelling Production of Will
    1.311 Probate of Lost Will
    1.312 Securing Assets

1.4 INITIAL CONTACT WITH CLIENT
    1.401 Identifying the Client
    1.402 Initial Information to Obtain from Client
    1.403 Review of Will
    1.404 Deciding Whether to Probate

APPENDIX 1-1: LEGAL ETHICS OPINION #1599

APPENDIX 1-2: SAMPLE ENGAGEMENT LETTER

APPENDIX 1-3: LEGAL ETHICS OPINION #1515

APPENDIX 1-4: APPLICATION FOR CERTIFICATION OF A VITAL RECORD

APPENDIX 1-5: REAL ESTATE AFFIDAVIT

APPENDIX 1-6: VIRGINIA SMALL ESTATE ACT AFFIDAVIT

CHAPTER 2: PROBATE AND QUALIFICATION  (back to top)

2.1 JURISDICTION

2.2 WHO MAY QUALIFY AS PERSONAL REPRESENTATIVE
    2.201 Where There Is a Will
    2.202 Where There Is No Will
    2.203 Timing of Appointment
    2.204 Appointment of Personal Representative upon Motion of Any Person
    2.205 Curator

2.3 REQUIREMENTS FOR PROBATE OF A WILL
    2.301 Self-Proving Will
    2.302 Will That Is Not Self-Proving
    2.303 Holographic Will
    2.304 Witness Missing, Out-of-State, or Deceased

2.4 METHODS OF PROBATE
    2.401 Ex Parte Probate
    2.402 Quasi Inter Partes Probate
    2.403 Inter Partes Probate
    2.404 Complaint to Establish or Impeach a Will (Devisavit vel non)
    
2.5 PROBATE OF LOST OR DESTROYED WILL

2.6 PROBATE OF LATER WILL

2.7 PROBATE OF FOREIGN WILL

2.8 COMPELLING PRODUCTION OF WILL

2.9 DESTROYING OR CONCEALING WILL

2.10 PRACTICAL ASPECTS OF EX PARTE PROBATE AND QUALIFICATION BEFORE CLERK
    2.1001 Preliminary Matters
    2.1002 Bond
    2.1003 Surety
    2.1004 Documentation Required at Probate
    2.1005 Fees and Taxes

2.11 PROBATE AND QUALIFICATION ORDER

APPENDIX 2-1 CONSENT OF NONRESIDENT FIDUCIARY FOR SERVICE OF
PROCESS

APPENDIX 2-2 SELF-PROVING AFFIDAVIT

APPENDIX 2-3 SELF-PROVING AFFIDAVIT—ALTERNATIVE FORM

APPENDIX 2-4 DEPOSITION OF WITNESS TO WILL WITHOUT SELFPROVING
CLAUSE

APPENDIX 2-5 PROBATE INFORMATION FORM AND INSTRUCTIONS

APPENDIX 2-6 MEMORANDUM OF FACTS—PROBATE

APPENDIX 2-7 LIST OF HEIRS

APPENDIX 2-8 PROBATE TAX RETURN

APPENDIX 2-9 ORDER OF PROBATE AND QUALIFICATION

CHAPTER 3: ADMINISTRATION OF THE ESTATE AFTER PROBATE  (back to top)

3.1 OVERSIGHT BY COMMISSIONER OF ACCOUNTS
    3.101 Establishment of Office and Appointment
    3.102 Duties
    3.103 Powers
    3.104 Local Customs
    3.105 Assistant Commissioner of Accounts
    
3.2 GENERAL POWERS AND DUTIES OF PERSONAL REPRESENTATIVE
    3.201 Sources of Powers and Duties
    3.202 Powers Granted by Will
    3.203 Powers Granted by Statute
    3.204 Powers Incorporated by Reference
    3.205 Role of Co-Personal Representatives
    3.206 Standard of Care
    3.207 Duty to Pursue Claims
    3.208 Duty to Report Move

3.3 INITIAL DUTIES OF PERSONAL REPRESENTATIVE
    3.301 Collecting Assets
    3.302 Obtaining a Taxpayer Identification Number
    3.303 Establishing the Estate Bank Account
    3.304 Obtaining Letters of Qualification
    3.305 Handling Decedent’s Mail
    3.306 Access to Email and Other Digital Accounts
    3.307 Obtaining Death Certificates

3.4 NOTICE OF PROBATE
    3.401 In General
    3.402 Who Must Provide Notice
    3.403 Who Must Receive Notice
    3.404 Exceptions
    3.405 Time for Sending Notice
    3.406 Form of Notice
    3.407 Method of Delivery
    3.408 Filing of Affidavit
    3.409 Effect of Failure to File Notice or Affidavit

3.5 MANAGING AND ADMINISTERING ASSETS
    3.501 In General
    3.502 Tangible Personal Property
    3.503 Stocks and Bonds
    3.504 Real Property
    3.505 Uniform Real Property Transfer on Death Act
    3.506 Life Insurance
    3.507 Assets in Other States
    3.508 Recordkeeping
    3.509 Appraisals of Property

3.6 PREPARING AND FILING THE INVENTORY
    3.601 In General
    3.602 Time Period for Filing
    3.603 When Inventory Not Required
    3.604 Valuation of Assets
    3.605 Property Included on the Inventory
    3.606 Filing Requirements and Fees
    3.607 Delivery of Inventory to Beneficiaries
    3.608 Effect of Failure to File
    3.609 After-Discovered Assets

3.7 FILING ACCOUNTINGS
    3.701 Statement of Accounting
    3.702 Statement in Lieu of Accounting

3.8 FILING TAX RETURNS
    3.801 Decedent’s Personal Income Tax
    3.802 Estate Tax
    3.803 Estate Income Tax

APPENDIX 3-1 NOTICE OF PROBATE

APPENDIX 3-2 AFFIDAVIT OF COMPLIANCE

APPENDIX 3-3 STOCK POWER

APPENDIX 3-4 REVOCABLE TRANSFER ON DEATH DEED PURSUANT TO
SECTION 64.2-635 OF THE VIRGINIA CODE

APPENDIX 3-5 REVOCATION OF TRANSFER ON DEATH DEED PURSUANT TO
SECTION 64.2-635 OF THE VIRGINIA CODE

APPENDIX 3-6 INVENTORY FOR DECEDENT’S ESTATE AND INSTRUCTIONS

APPENDIX 3-7 ACCOUNT FOR DECEDENT’S ESTATE, INSTRUCTIONS, AND
SAMPLE ACCOUNT

APPENDIX 3-8 STATEMENT IN LIEU OF SETTLEMENT ACCOUNT

APPENDIX 3-9 NOTICE OF INTENT TO FILE A STATEMENT IN LIEU OF
SETTLEMENT OF ACCOUNT

CHAPTER 4: CLAIMS, ELECTIONS, AND FILINGS AGAINST THE ESTATE  (back to top)

4.1 THE AUGMENTED ESTATE
    4.101 Historical Background
    4.102 Electing the Augmented Estate
    4.103 Time for Filing the Election
    4.104 What Constitutes the Augmented Estate
    4.105 Determining the Elective Share
    4.106 Satisfying the Elective Share
    4.107 Right of Spouse to Residence
    4.108 Defenses

4.2 ALLOWANCE ELECTIONS
    4.201 Family Allowance
    4.202 Exempt Property Allowance
    4.203 Homestead Allowance
    
4.3 INSOLVENT ESTATES

4.4 WILL CONTESTS
    4.401 In General
    4.402 Parties
    4.403 Appointment of Curator
    4.404 Expenses
    4.405 Grounds

4.5 DISCLAIMERS
    4.501 In General
    4.502 Persons Who May File Disclaimer
    4.503 Contents of Disclaimer
    4.504 Filing and Recording
    4.505 Time of Taking Effect
    4.506 Form of Disclaimer

APPENDIX 4-1 CLAIM TO AN ELECTIVE SHARE PURSUANT TO SECTION
64.2-302 OF THE VIRGINIA CODE

APPENDIX 4-2 SAMPLE CALCULATIONS OF AUGMENTED ESTATE, SPOUSE’S
ELECTIVE SHARE, ALLOCATION OF ASSETS, AND ALLOCATION OF
CONTRIBUTIONS

APPENDIX 4-3 PETITION FOR DETERMINATION OF ELECTIVE SHARE

APPENDIX 4-4 ORDER DETERMINING SPOUSE’S ELECTIVE SHARE

APPENDIX 4-5 CLAIM FOR FAMILY ALLOWANCE

APPENDIX 4-6 CLAIM FOR EXEMPT PROPERTY ALLOWANCE

APPENDIX 4-7 APPEAL FROM CLERK’S ORDER

APPENDIX 4-8 COMPLAINT TO IMPEACH A WILL

APPENDIX 4-9 DISCLAIMER

CHAPTER 5: SPECIAL PROBLEMS IN ADMINISTRATION  (back to top)

5.1 SUIT FOR GUIDANCE FROM COURT
    5.101 In General
    5.102 Reasons to Seek the Court’s Guidance
    5.103 Filing
    5.104 Parties
    5.105 Role of Personal Representative

5.2 OTHER COURT ACTIONS
    5.201 Distribution of Funds for Missing Beneficiary
    5.202 Distribution of Funds Pursuant to Section 64.2-2301
    5.203 Standing of Personal Representative

5.3 REMOVAL OF FIDUCIARY
    5.301 In General
    5.302 Removal of Personal Representative
    5.303 Successor Fiduciary

5.4 PROBATE OF A FOREIGN WILL
    5.401 In General
    5.402 Procedure
    5.403 Probate of Virginia Will Elsewhere

5.5 SPECIAL ASSET PROBLEMS
    5.501 In General
    5.502 Real Estate
    5.503 Multiple-Party Bank Accounts

APPENDIX 5-1 COMPLAINT FOR AID AND DIRECTION

CHAPTER 6: FIDUCIARY INCOME TAXATION  (back to top)

6.1 INTRODUCTION
    6.101 Overview of Subchapter J
    6.102 Estates and Trusts as Taxable Entities
    
6.2 FILING REQUIREMENTS
    6.201 Fiduciary’s Responsibility for Filing Returns
    6.202 Entities Required to File
    6.203 I.R.C. § 645 Election to Treat Qualified Revocable Trust as
    Part of Estate
    6.204 The Tax Return Forms

6.3 DISTRIBUTABLE NET INCOME
    6.301 Definition
    6.302 Characterization Determined by Federal Tax Law
    6.303 Cardinal Rules of the DNI Allocation System
    6.304 Variable Complexity of DNI Allocation System
    6.305 Modification of Definition of Income and DNI to Accommodate
    Unitrusts and Equitable Adjustment

6.4 CALCULATION OF TAXABLE INCOME AND TAX PAYABLE BY
    THE ENTITY
    6.401 Computation of Taxable Income
    6.402 Computation of Tax
    6.403 Alternative Minimum Tax
    6.404 Taxation of Certain Small Business Trusts
    6.405 Estimated Tax

6.5 ALLOCATION OF INCOME BETWEEN ENTITY AND BENEFICIARIES
    6.501 Functions of the Distributable Net Income Concept
    6.502 Definition of DNI
    6.503 Example of Relationship of DNI to Fiduciary Income
    6.504 Determining the Net Income Components of DNI
    6.505 Determining the Location of DNI
    6.506 Illustration of the DNI Allocation Rules
    6.507 Accumulation Throwback Rules

6.6 OPPORTUNITIES AND PITFALLS: PLANNING CONSIDERATIONS
    6.601 Income Tax Planning
    6.602 Importance of Fiduciary Discretion
    6.603 Planning for Tax Aspects of Administration
    6.604 Choosing the Initial Fiscal Period
    6.605 Selecting the Entity or Person to Pay Income Taxes
    6.606 Administration Expenses, Casualty Losses, and Selling Expenses on
    Forms 1041 and 706
    6.607 Options for Interest on Series E or EE Savings Bonds
    6.608 Distributions in Kind to Pecuniary Beneficiaries and in Satisfaction
    of Duty to Make Required Distributions of Income
    6.609 Distributions in Kind to Residuary Beneficiaries and in Funding
    Discretionary Distributions by Trusts
    6.610 Terminating an Estate or Trust
    6.611 Partnerships
    6.612 S Corporations

CHAPTER 7: ESTATE TAX CONSIDERATIONS  (back to top)

7.1 INTRODUCTION

7.2 FILING THE RETURN
    7.201 Filing Requirement Threshold
    7.202 Time for Filing
    7.203 Extension of Time
    7.204 Late Filing Penalty

7.3 DETERMINING THE TAX
    7.301 In General
    7.302 Gross Estate
    7.303 Valuation of Assets
    7.304 Deductions
    7.305 Exclusion for Qualified Conservation Easement
    7.306 Estate Tax Liability

7.4 THE GENERATION-SKIPPING TRANSFER TAX

7.5 THE AUDIT PROCESS
    7.501 In General
    7.502 Concluding the Audit on an “Agreed” Basis
    7.503 Concluding the Audit on an “Unagreed” Basis

7.6 VIRGINIA ESTATE TAX

APPENDIX 7-1 PROPERTY INTERESTS REPORTABLE ON SCHEDULE F

APPENDIX 7-2 FORM 890—WAIVER OF RESTRICTIONS ON ASSESSMENT
AND COLLECTION OF DEFICIENCY AND ACCEPTANCE OF
OVERASSESSMENT—ESTATE, GIFT, AND GENERATION-SKIPPING
TRANSFER TAX

CHAPTER 8: WINDING UP AND SETTLEMENT OF THE ESTATE  (back to top)

8.1 DEBTS AND DEMANDS
    8.101 In General
    8.102 Show Cause Order
    8.103 Distribution Order
    8.104 Contingent Claims
    8.105 Scope of Protection for Personal Representative

8.2 DISTRIBUTION OF ASSETS
    8.201 Distribution Checklist
    8.202 Intestacy
    8.203 When Distribution Can Be Made
    8.204 Distributions to Minors
    8.205 Compensation of Executor
    8.206 Estate Insufficient to Satisfy Debts and Bequests

8.3 FILING OF FINAL ACCOUNTING
    8.301 Statement of Accounts
    8.302 Statement in Lieu of Accounting

8.4 PAYMENT OF FINAL ADMINISTRATION FEES
    8.401 In General
    8.402 State Probate Tax
    8.403 County or City Probate Tax
    8.404 Tax in Lieu of Probate Tax
    8.405 Appointing and Qualifying Personal Representative or
    Other Fiduciary
    8.406 Minimum Fee for Will and List of Heirs
    8.407 Underreported Asset Values
    8.408 Certificates of Qualification
    8.409 Corporate Fiduciaries

8.5 DISTRIBUTION OF FINAL ASSETS

APPENDIX 8-1 REPORT OF DEBTS AND DEMANDS

APPENDIX 8-2 MOTION FOR SHOW CAUSE ORDER

APPENDIX 8-3 SHOW CAUSE ORDER

APPENDIX 8-4 SHOW CAUSE ORDER AGAINST DISTRIBUTION

APPENDIX 8-5 ORDER OF DISTRIBUTION OF ESTATE

APPENDIX 8-6 RECEIPT (TANGIBLE PERSONAL PROPERTY)

APPENDIX 8-7 RECEIPT (CASH BEQUEST)

APPENDIX 8-8 REFUNDING BOND

APPENDIX 8-9 DECLARATION OF TRUST UNDER THE VIRGINIA UNIFORM CUSTODIAL TRUST ACT

APPENDIX 8-10 TRANSFER UNDER THE VIRGINIA UNIFORM CUSTODIAL TRUST ACT

APPENDIX 8-11 CUSTODIAL TRUSTEE’S RECEIPT AND ACCEPTANCE

APPENDIX 8-12 WAIVER OF COMPENSATION

CHAPTER 9: ADMINISTRATION OF TRUSTS  (back to top)

9.1 INTRODUCTION

9.2 VIRGINIA’S UNIFORM TRUST CODE
    9.201 Enactment
    9.202 Effective Date
    9.203 Reasons for Enactment
    9.204 Structure
    9.205 Applicability
    9.206 General Provisions
    9.207 Representation of Others
    9.208 Revocable Trusts
    9.209 Acceptance, Declination, Resignation, Substitution, or Removal
    of Trustee
    9.210 Modification and Termination of Trusts
    9.211 Principal Place of Administration
    9.212 Trustee’s Duties
    9.213 Trustee Powers
    9.214 Co-Trustees
    9.215 Breach of Trust
    9.216 Nonjudicial Settlement Agreements, Consents, Releases and
    Ratifications
    9.217 Statute of Limitations
    9.218 Creditor’s Claims
    9.219 Virginia Domestic Asset Protection Trusts
    9.220 Trust-Owned Life Insurance and the Insurable Interest of Trustees

9.3 TESTAMENTARY TRUSTEES
    9.301 Obligations of Testamentary Trustees
    9.302 Qualification and Bond
    9.303 Inventory
    9.304 Accountings
    9.305 Compensation
    9.306 Notice of Move
    9.307 Will Irregularities

9.4 INVESTMENTS
    9.401 The Uniform Prudent Investor Act
    9.402 Scope
    9.403 Default Rule
    9.404 Requirements
    9.405 Duty to Diversify
    9.406 Investment Review
    9.407 Duties of Loyalty and Impartiality
    9.408 Costs
    9.409 Compliance
    9.410 Delegation
    9.411 Legal List

9.5 DISTRIBUTIONS
    9.501 Income Distributions
    9.502 Principal Distributions
    9.503 Power to Adjust and Total Return Unitrusts

9.6 MANAGING FIDUCIARY RISK
    9.601 Surcharge Litigation
    9.602 Assessing Risk
    9.603 Basics of Managing Risk
    9.604 Managing Fiduciary Risk Under the VUTC

9.7 TAX MATTERS
    9.701 Threshold Questions
    9.702 Trusts Generally
    9.703 Grantor Trusts
    9.704 Taxation of Nongrantor Trusts
    9.705 Simple and Complex Trusts
    9.706 Deductions and Losses
    9.707 Income Tax Distribution Planning for Trusts
    9.708 Miscellaneous Issues
    9.709 Fiscal Year
    9.710 Computation of Tax
    9.711 Tax Returns
    9.712 Estimated Tax Payments
    9.713 Alternative Minimum Tax
    9.714 Generation-Skipping Transfer Tax
    9.715 Qualified Domestic Trusts
    9.716 Other Useful Forms (Form SS-4, Form W-9, and Form 56)

APPENDIX 9-1 TRUST INFORMATION FORM AND INSTRUCTIONS

APPENDIX 9-2 MEMORANDUM OF FACTS—TRUST

APPENDIX 9-3 INVENTORY FOR TRUST AND INSTRUCTIONS

APPENDIX 9-4 ACCOUNT FOR TRUST, INSTRUCTIONS,
AND SAMPLE ACCOUNT

TABLE OF AUTHORITIES

INDEX

Authors

Editor:

James P. Cox, III

Authors:

Farhad Aghdami

Dana G. Fitzsimons, Jr.

H. Michael Deneka

John T. Midgett

Mark S. Shepard

John H. (Jay) Turner III

Clark H. Worthy

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