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Probate

My Dead Relative Received a Stimulus Check. How Do I Return It?

By Elder Law, Government Benefits, Probate, Tax Law

According to the IRS, stimulus payment made to someone who died before receiving it should be returned to the government. If the payment was made to a single filer, the entire payment should be returned. If the payment was made to joint filers, and one spouse had not died before the receipt of the payment, only the portion of the payment made on account of the decedent should be returned. This amount will be $1,200.00, unless the joint adjusted gross income exceeded $150,000.00.

If the payment was a paper check and you have not cashed it:

  1. Write “Void” in the endorsement section on the back of the check.
  2. Mail the voided Treasure check to the appropriate IRS location, based on your state of residence. This information can be found at https://www.irs.gov/coronavirus/economic-impact-payment-information-center#more. If you live in Florida, the check should be mailed to:

         Austin Internal Revenue Service

3651 S. Interregional Hwy

Austin, TX 78741

  1. Do not staple, bend, or paperclip the check.
  2. Include a note stating the reason for returning the check.

If the payment was a direct deposit, or if the payment was a paper check and you have cashed it:

  1. Submit a personal check, money order, etc., payable to “U.S. Treasury,” immediately to the appropriate IRS location, based on your state of residence. This information can be found at https://www.irs.gov/coronavirus/economic-impact-payment-information-center#more. If you live in Florida, the check should be mailed to:

         Austin Internal Revenue Service

3651 S. Interregional Hwy

Austin, TX 78741

  1. Write “2020EIP” and the deceased recipient’s social security number on the memo line of the check.
  2. Include a brief explanation of the reason for returning the payment.

Fred Jacobs is a Florida Board Certified Tax Lawyer.  Contact Fred at Bach, Jacobs & Byrne, P.A. to discuss tax planning for you and your family. Call (941) 906-1231 to schedule an appointment.

May 20, 2020
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My Dead Relative Received a Stimulus Check. Can I keep it?

By Government Benefits, Probate

There have been a number of glitches in sending stimulus payments to Americans under the recently enacted CARES Act, including sending stimulus payments, which are intended to ease the financial stress caused by the Coronavirus, to dead people. Initially, this issue left many unanswered questions for the relatives of the deceased. What should I do with the money? Do I get to keep it? Should it be deposited into an estate account? Should I send it back? However, now, the IRS has issued specific guidance on what to do if you receive a stimulus check for a deceased person.

According to the recently released guidance, the IRS says that a stimulus payment made to someone who died before receiving  should be returned to the government. If the payment was made to a single filer, the entire payment should be returned. If the payment was made to joint filers, and one spouse had not died before the receipt of the payment, only the portion of the payment made on account of the decedent should be returned. This amount will be $1,200.00, unless the joint adjusted gross income exceeded $150,000.00.

Fred Jacobs is a Florida Board Certified Tax Lawyer.  Contact Fred at Bach, Jacobs & Byrne, P.A. to discuss tax planning for you and your family. Call (941) 906-1231 to schedule an appointment.

May 19, 2020
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The Two Main Forms of Probate in Florida

By Probate

Probate is defined as the process of proving a Will is valid in court and thereafter administering the estate of the decedent according to the terms of their Will. In Florida, there are two main types of probate: Summary Administration and Formal Administration. In an effort to make the probate process less complex and easier to understand, this blog will break down these two forms of probate.

  • Summary Administration: Summary Administration is often the easiest and least expensive type of probate, but it can only be utilized when an individual’s estate is worth less than $75,000 and there are no unpaid creditors of the decedent. Additionally, if the decedent has been dead for at least two years at the time the probate process is started, then Summary Administration may be employed. If the decedent died with a Will, it will be admitted by the court if it is valid. If the decedent died without having created a Will, the process of intestate succession will apply.

 

  • Formal Administration: Formal Administration involves close supervision by the court of the collection and distribution of the assets in the decedent’s estate and the payment of the decedent’s creditors. Once a probate attorney has been hired and the official filings have been made to the court, a judge will issue letters of administration (an order that authorizes a Personal Representative to act on behalf of an individual’s estate), then the process may begin. Administration of the estate may involve: notifying creditors, collecting assets, collecting debts, identifying the rights of beneficiaries, maintaining assets, processing and paying creditor claims and preparing objections to a claim. When this process is complete, the hired probate attorney will file a petition with the court to close the Estate. Once the estate has officially been closed, the probate process is over.
April 27, 2018
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What is Intestate Succession?

By Estate Planning, Probate

If an individual dies intestate, it means that they passed away without having created a Will or estate plan. When someone dies without a Will or estate plan, their property passes into “intestate succession”. This means that state law determines who will get the assets of that person’s estate, as there is no Will to decide what should go to whom. In Florida, if you have children but no spouse, your children will inherit everything. If, on the other hand, you have a spouse but do not have children, your spouse will inherit everything. If you have both a spouse and children by that spouse and your spouse has no other descendants, your spouse will inherit everything. If you have a spouse and descendants from you and that spouse, but the spouse has descendants from another relationship, your spouse will inherit half of your intestate property and your children will inherit the other half. If you have a spouse and descendants from you and someone other than that spouse, the same principle applies and your spouse will inherit half of your intestate property while your descendants will inherit the other half. If you die without a spouse or descendants, your parents inherit everything. If you die with siblings but no spouse, descendants or parents, your siblings inherit everything. If you do not leave a Will or estate plan, then your estate will become property of the state only if you do not have a spouse, children, grandchildren, parents, grandparents, siblings, nieces or nephews, aunts or uncles, cousins, or great aunts or uncles at the time of your death.

April 20, 2018
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The Basic Steps of Probate in Florida

By Probate

Probate is the legal process of proving that a Will is valid in court and administering the estate of the decedent according to the terms of their Will. If you are the personal representative of an estate, probate can become a complex and overwhelming matter. In Florida, the probate process can be broken down into four fairly simple steps. These steps will help you acquire a better understanding of how the probate process works and provide guidelines to follow that will help you fulfill your various duties.

Step 1: File a petition and give notice to the heirs and beneficiaries

File a petition with the probate court. You will either need to admit the Will and appoint the personal representative or, if there is no Will, appoint an administrator for the estate. In some situations, you will need to provide notice of the court hearing to all interested parties, which is usually the beneficiaries and heirs.

Step 2: Give notice to all creditors                                    

Following appointment by the court, the personal representative must give written notice to all creditors of the estate that indicates the date by which claims must be submitted. A notice will need to be filed publically to notify any unknown creditors, which can be done through the newspaper. Then, the creditors must file a valid claim with the court in order to get paid.

Step 3: Pay all debts, including taxes and funeral expenses

As the personal representative, you need to ensure that all funeral bills and final expenses have been paid. Additionally, determine which creditors’ claims are legitimate and pay those that are.

Step 4: Ask for permission to transfer remaining assets to beneficiaries

Once the creditor waiting period is over and all bills are paid, you can petition the court for the authorization to transfer assets to the beneficiaries indicated in the decedent’s Will and then close or discharge the probate proceeding.

If you need legal advice regarding the probate process, please contact our office at: 941-906-1232 to schedule an appointment with one of our attorneys.

February 27, 2018
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Probate Court Series: Can I Avoid Probate?

By Asset Protection Planning, Estate Planning, Probate

Probate proceedings can be very time consuming, make assets inaccessible for months, and involve the filing of documents and information in court that you may want to keep private. There are also legal fees involved in a probate proceeding that may be minimized or eliminated by alternatives to transfer assets after death.

If you have further questions or would like to talk about options for transferring assets outside of probate, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

August 18, 2017
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Probate Court Series: What is a Probate?

By Probate

Probate is the legal process following someone’s death that involves the payment of the decedent’s debts and the transfer of assets to beneficiaries.

The process includes:

  • Proving that the deceased’s Will is valid
  • Locating and taking inventory of all property of the deceased
  • Appraising the property once it is located
  • Ensuring that all debts and taxes are paid
  • Distributing the remaining property according to the will or as determined by the state if there is no Will.

If you have further questions, contact our office at (941) 906-1231 to schedule an appointment with one of our attorneys.

August 15, 2017
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Can conveyance of property by Lady Bird deed avoid subjecting the property to probate?

By Asset Protection Planning, Estate Planning, Probate

A big advantage of signing a Lady Bird deed is that it avoids probate of the property after you pass away. In many states, including Florida, there is a Medicaid estate recovery program that seeks reimbursement from probate assets if you received benefits during your lifetime. But with a Lady Bird deed, the property is considered a nonprobate estate and the beneficiaries can inherit the property without having to reimburse the government for Medicaid benefits that you might have received.

November 1, 2016
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How does Divorce affect Intestate Succession in Florida?

By Elder Law, Estate Planning, Probate

            When a divorce is finalized, a former spouse’s right to an inheritance through Florida’s intestacy laws ends.  This means that if a spouse dies without a will and their estate goes through probate, the surviving ex-spouse would have no right to an inheritance if a divorce had been finalized prior to the death.  However, if a divorce is still in progress but not finalized at the time of death, the surviving spouse has full rights to their inheritance as defined by Florida’s intestate succession rules.

May 24, 2016
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Florida Intestate Succession Rules

By Elder Law, Estate Planning, Probate

If someone in Florida dies without a will, their estate is distributed to living relatives following intestate succession laws.  In the rare case that someone dies without any relatives including great aunts and uncles, cousins of any degree, or nieces or nephews, their estate would escheat, or be passed to, the state.

Some common questions about Florida’s intestate succession rules regard how certain relatives are treated in the process.  Half-relatives, such as half brothers or sisters, are entitled to inheritances as if they were “full” relatives.

If you have further questions about the probate process, intestate succession, or setting up estate planning documents to avoid probate, contact one of our experienced estate planning or probate attorneys at (941) 906-1231.

May 20, 2016
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