How Do I Set up an Estate Account for My Deceased Brother?
Full Question:
Answer:
If there is no valid will, the other assets will be distributed according to state laws of intestacy. If it is a survivorship account, or transfer on death account, it passes outside the probate process. That means it will not be included as part of the estate that either passes under a will or according to state intestacy laws (applicable when there is no will). If the account is held as tenants in common, it's possible that the deceased owner's share could pass to heirs.
When a person dies, their assets are distributed in the probate process. If a person dies with a valid will, an executor is named to handle the distribution of the estate. If the person dies without a valid will, the court appoints an administrator to distribute the decedent's assets according to the state's laws of intestacy. The court will issue letters of administration to the administrator, giving the authority to handle the affairs of the deceased. An heirship affidavit may also be used to conduct estate affairs when a small estate is involved. In cases where the decedent didn't own property valued at more than a certain amount, which varies by state, the estate may go through a small estate administration process, rather than the formal probate process.
In California, if the value of a decedent's estate doesn't exceed $100,000, the small estate procedures may be used to collect and distribute the assets of the estate. An heirship affidavit may be used in place of letters of administration. A NC bank should recognize letters of administration or an heirship affidavit from California.
Once the Letters Testamentary have been issued by the Clerk of the Court, the Executor is responsible for obtaining what is called a Federal Tax Identification Number (IRS Form SS-4). This number is similar to a Social Security number issued to an Individual person. It will be used when the Executor opens an Estate Account with a financial institution.
You can find IRS Form SS-4 at the IRS Website. The form can be completed on the internet by either the Executor or the Attorney representing the Estate. However, if the Attorney is the person doing it, he or she must have a Power of Attorney given by the Executor to obtain the number on behalf of the Executor.
Please see the information at the following links:
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=prob&group=13001-14000&file=13100-13116
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=prob&group=06001-07000&file=6600-6615