In the post-death period of an estate, the executor and the successor trustee of a revocable living trust must fulfill significant fiduciary duties relating to legal and tax matters of the decedent’s estate, regardless of whether the decedent had a fully funded living trust at the time of death and whether the decedent had a will that had to be probated. At Karen S. Gerstner & Associates, P.C., we apply our extensive expertise in estate, trust, and tax law and over 40 years of law practice experience in guiding executors and successor trustees through all the required steps of the post-death process. We view the post-death process as a journey and ourselves as the fiduciaries’ guide through that journey.

Since 1986, Karen Gerstner has been Board Certified in Estate Planning and Probate Law by the Texas Board of Legal Specialization. She is also a Fellow of the American College of Trust and Estate Counsel, an elite designation reserved for lawyers who demonstrate the highest level of professionalism and expertise in wills and trusts, estate planning and probate, and tax law.

We maintain a commitment to the highest level of personal service to every client by providing services in a timely manner, communicating complicated concepts in terms that are easily understood, and treating each client with dignity at all times. Our relationships with clients are based on mutual trust and respect. The success of our practice is demonstrated by the fact that most of our clients come to us through referrals from financial advisors, trust officers, accountants, and other clients.

Overview of the Post-Death Process

Generally, the post-death process includes three parts:

  1. Probate and estate administration,
  2. Internal Revenue Service (IRS) due diligence, and
  3. Estate closing, asset distribution, and trust funding

We guide the personal representative (executor) of an estate and the successor trustee of a revocable living trust (if applicable) through the post-death process, taking into account applicable state law and federal tax laws.

In each of the three parts of the post-death process, the executor of the estate has primary responsibility for completing the required legal and tax matters. However, if all of the decedent’s assets were titled in the name of a revocable living trust at the time of death, there is no need to probate the will and secure appointment of an executor. In that case, the successor trustee of the living trust performs the legal and tax responsibilities in the post-death period. In either case, our attorneys guide the fiduciary of the estate through the process of fulfilling their post-death legal duties.

Our representation of a fiduciary with respect to the post-death legal and tax matters does not automatically include advising the trustee of a trust that is a beneficiary under the decedent’s will or revocable trust. However, our attorneys do provide trust administration legal services separately from post-death counsel and representation.

Part 1: Probate and Estate Administration

Our attorneys assist with post-death probate and estate administration matters for the estate and the revocable living trust. We determine whether probate is necessary or desirable. If so, we assist in the statutory probate process established under Texas law, which includes detailed procedures and notices, specific filings, and timelines. Our work includes preparing the required probate court pleadings and documents, attending the required court hearings, assisting in collection and administration of estate assets, payment of debts and expenses, giving the required legal notices, and preparing the Probate Inventory, Appraisement and List of Claims or the Affidavit in Lieu of the Inventory.

Other documents that may be prepared as part of estate administration include, but are not limited to, disclaimers, non pro rata distribution documents, and family settlement agreements.

Part 2: Tax Returns and Internal Revenue Service Due Diligence

Valuation of the estate assets has estate tax and income tax basis implications and is an essential part of satisfying the fiduciaries’ tax due diligence responsibilities. In accordance with IRS regulations, we work with the fiduciaries to prepare the Estate Asset Spreadsheet, which lists and values all probate and non-probate assets in which the decedent owned an interest at death, including assets titled in the name of the decedent’s revocable trust on the decedent’s date of death.

Our services include analyzing the Estate Asset Spreadsheet and other aspects of the estate as necessary to determine whether a federal estate tax return is required to be filed for the estate. We also ascertain whether a federal estate tax return should be filed — even if not required — if the surviving spouse wishes to make the portability election. If a federal estate tax return will be filed, we prepare the return with the fiduciary’s assistance.

In addition to paying any federal estate taxes that are due, the executor (or trustee if there is no executor) must file the decedent’s final income tax return and pay the decedent’s final income taxes, as well as any other taxes owed by the decedent or the estate, before distributing any assets to the beneficiaries. Our attorneys do not prepare income tax returns but do consult and coordinate with the CPA who prepares those returns. We also do not prepare state inheritance tax returns (currently, Texas does not have an inheritance tax), but we do advise the estate fiduciaries whether inheritance tax returns for other states are required.

Part 3: Estate Closing, Asset Distribution and Trust Funding

When Parts 1 and 2 of the post-death process are complete, our attorneys assist in final distribution of all estate and revocable trust assets, consistent with the provisions of the decedent’s will and trust instrument and any other applicable estate planning documents.

This phase includes re-titling assets into the names of the beneficiaries, which may require the preparation of deeds, assignments, letters of instruction, stock powers, and similar legal documents. In most cases, re-titling also changes the taxpayer identification numbers associated with the assets.

If the decedent’s will created any testamentary trusts, the executor must establish and fund those trusts, which requires re-titling the designated trust assets into the name of the trust and changing the taxpayer identification number to that of the trust. Funding a trust is different and separate from administration of a trust after it is funded.

When all assets have been retitled and distributed, the fiduciary closes the estate and files the final income tax return for the estate.

Schedule a Consultation With Us About Post-Death Administration and Tax Compliance

Our attorneys welcome inquiries from personal representatives of estates and successor trustees concerning their responsibilities in the post-death process. We serve clients throughout the Houston metropolitan area and elsewhere in Texas. You may schedule a consultation by calling (713) 520-5205 or using the online contact form.