Exploring the Ins and Outs of Estates

• Author: Margaret A. Munro, Kathryn A. Murphy
• Profession: Has more than 30 years' experience in trusts, estates, family tax, and small businesses/Attorney with more than 20 years' experience administering estates and trusts and preparing estate and gift tax returns
• Pages: 19-30

CHAPTER 2 Exploring the Ins andOuts of Estates 19

Chapter2

Exploring the Ins

andOuts of Estates

When you’re named as executor or administrator of an estate for the rst

(or second or third) time, you may have some questions as to what,

exactly, an estate is, and about the whole probate estate and estate tax

process in general. Before you can administer an estate, you need to have a rm

grasp of what an estate is. Don’t worry, though— you don’t have to become an

estate and trust attorney. We provide you with the ABCs of estates right here.

Consider it your entry-level course to understanding the basics on estates.

This chapter denes many of the terms associated with estates, lays out the pro-

cess of determining who inherits, and explains the dierence between the estate

as it’s dened for probate purposes and for estate tax purposes. So read on, dip

your toe in, or take the plunge— we think you’ll end up with a rmer grasp on

estates.

IN THIS CHAPTER

»

Classifying the estate dierently

forprobate administration and tax

purposes

»

Knowing what to do regardless of

whether the decedent left a will

»

Determining who inherits

»

Figuring out How to dene the estate

for tax purposes