When a loved one passes away, families often face not only emotional loss but also a complex and time-sensitive legal process: probate. Probate is the court process for settling a decedent’s estate and can involve validating a will, paying outstanding debts, and distributing assets. While attorneys typically handle the legal filings, CPAs play a vital role in helping families manage the financial, tax, and accounting aspects of settling an estate.
One of the first steps in probate is identifying and valuing all assets — bank accounts, real estate, retirement funds, investments, and business interests. If the estate earns income during probate (i.e. interest, dividends, rental income, business income, etc.), it may need to file a fiduciary income tax return. In addition, the estate may be subject to an estate asset tax dependent on the decedent’s net worth.
Probate can be complex, but we break down each step in plain language and keep you informed throughout the entire process.
