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Probate/Estate and Trust Administration

Estate administration, or probate administration as it is also referred to, is the legal process of winding up a deceased person’s financial affairs and distributing the decedent’s property to his/her beneficiaries or heirs.  While Indiana law allows estates with less than $50,000 in assets to bypass the formal administration process with the use of a Small Estate Affidavit, any estate with more than $50,000 must be administered as part of a formal probate proceeding.  A formal estate administration or probate proceeding for an estate consisting of more than $50,000.00 in assets must be commenced in the Probate Court of the county in which the decedent resided.

If a person dies “testate”, meaning he/she has a valid Last Will and Testament (a “Will”) at the time of death, that person’s estate will be administered according to the terms of that Will and any assets left, after payment of expenses, taxes, and claims of creditors, will be distributed to the beneficiaries named in the Will.  If a person dies “intestate”, meaning he/she did not have a valid Will at the time of death, then Indiana law determines how that person’s estate is administered and distributed and to whom.  Though Indiana’s “intestate” statute does provide for distribution of a person’s estate to his/her living heirs, the statutory manner and proportion of distribution passing to those heirs may not reflect what that person would have wanted for his/her estate.  This is why proper estate planning, such as with a Will or Trust, is so important during a person’s lifetime.

Whether a person dies testate or intestate, the responsibility for administering that decedent’s estate is left in the hands of a “personal representative” (formerly the executor or executrix) who has either been named in the Will or appointed by the Court.  The duties, responsibilities and powers of a personal representative are contained within the Indiana Probate Code.  Once a probate proceeding is initiated with the Probate Court and the personal representative is given legal authority by the Court to act, the personal representative must gather the decedent’s assets, notifying creditors, paying debts, filing income, inheritance or federal estate tax returns, and distributing the remaining property in accordance with either the Will or Indiana’s intestate statute.  All of which should only be done with the assistance of a knowledgeable probate attorney with experience in estate administration.  For those individuals who are suddenly met with the responsibility of administering a loved one’s estate while still grieving, the estate administration and probate attorneys at Miner Lemon & Walston, LLP, can ease the burden while providing competent and efficient representation.   

If at the time of death, all of a person’s assets have a beneficiary designation which directs how those assets are to be distributed or those assets are contained within a trust, an estate administration is not necessary.  Although, it may still be necessary for an attorney to assist a decedent’s family with retrieving death benefits, closing accounts, filing an inheritance tax return or a federal estate tax return, or administering a trust.

A trust administration may be necessary at the death of a person who created a trust (called a grantor, settlor or trustmaker) or at the death of a trust beneficiary.  That administration often includes gathering and preparing an inventory of trust assets, paying debts, filing income, inheritance or federal estate tax returns, preparing an accounting of the trusts assets and expenditures, and funding sub-trusts in some cases or distributing the remaining trust property in accordance with the terms of the trust.  The Trustee of the Trust is responsible for administering the Trust, and in most cases will need the capable assistance of an experienced trust administration attorney.

Any assets in which a person had any ownership interest are subject to Indiana Inheritance Tax (with few exceptions) at the time of death.   If those assets total more than the federal estate tax exclusion amount, currently two million dollars, then those assets may also be subject to Federal Estate Tax.  Only an experienced estate and trust administration attorney should advise you regarding the inheritance tax and estate tax filing requirements at the time of death.

So whether a person has only limited assets or a significant amount of assets, it is always important to consult with an attorney at the time of death to discuss whether estate or trust administration or inheritance or estate tax returns are necessary.  For family members who are suddenly met with the responsibility of winding up a loved one’s financial affairs, the estate and trust administration attorneys at Miner Lemon & Walston, LLP, can ease that burden and guide you through that process no matter how simple or how complex.   

The Probate Court also has jurisdiction over Adoptions and Guardianships.  Adoptions are formal court proceedings which involve complicated statutory pleading, notice and consent requirements, that only a skilled and experienced adoption attorney should help you navigate.    A guardianship may be necessary for a minor child, or if an adult person becomes incapacitated, is unable to manage their financial and personal affairs, and has not designated a fiduciary to act and make decisions for them, such as an Attorney-in-fact or Health Care Representative under a valid Power of Attorney, or a Trustee with the ability to provide for that person during incapacity.  Though proper estate planning can allow most people to avoid the need for a guardianship, those that do not plan or have inadequate estate plans are exposed to the risk of needing a guardianship.  A guardianship is a formal court proceeding that can be complex and distressing to family members that are often caretakers simply trying to protect and provide for their loved one.  In the unfortunate event that a guardianship becomes necessary for a loved one, it should be handled by an experienced guardianship attorney who can provide knowledgeable, compassionate legal assistance during such a difficult time.  At Miner Lemon & Walston, LLP, our experienced adoption and guardianship attorneys can provide such legal services. 

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Miner, Lemon and Walston, LLP
523 South Buffalo Street
Warsaw, IN 46580

Toll Free: 800-569-3903
Phone: 574-268-9911
Fax: 574-269-7828

Miner, Lemon and Walston,LLP

Warsaw
523 South Buffalo Street
Warsaw, IN 46580

Toll Free: 800-569-3903
Phone: 574-268-9911
Fax: 574-269-7828

Indianapolis
6435 Castleway W. Drive
Suite 121
Indianapolis, IN 46250

Phone: 317 585-8900
Fax: 317-585-8901

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