When someone dies, the Executor or Administrator of the person’s estate must close out the person’s financial affairs. One of the responsibilities of the Executor or Administrator is to file tax returns for the person who died and pay any taxes due. There are usually three or four different types of tax returns required. The Executor or Administrator is personally liable if these taxes are not paid. [Read more…]
How Real Property passes at the owner’s death
For most people, their home is the largest asset in their estate. The way a principle residence passes after death depends on how it is titled during the owner’s lifetime. The following are several ways that real property passes at death:
- If you are married and own the property as tenancy by the entirety with your spouse, the property passes to your spouse automatically at your death.
- For unmarried couples, a similar type of home ownership is joint tenancy with rights of survivorship. If one partner dies, the other partner automatically inherits the house.
- A third type of joint home ownership is tenancy in common. Both parties own a share of the property. If one party dies, the share of the deceased owner passes under that person’s Will or goes to the deceased person’s heirs if he dies without a Will.
- A fourth type of home ownership is ownership by a trust. If title to a residence has been transferred to a trust during the owner’s life, the trust owns the real property and the terms of the trust determine what happens at the trust grantor’s death.
- If you are the sole owner of your real property, your Will states who inherits your real property. If you die without a Will, the property passes to your closest heirs as determined by Tennessee law.
For some people, keeping financial matters private, even after death, is a high priority. You can maintain your privacy by using a traditional Will with the proper provisions or by using a revocable trust.
Probate Court is the court that determines the validity of your Will and oversees distribution of your estate after death. In the process, your Will is filed with the Probate Court and becomes part of the public record. The Will and all other filings in the Probate Court are available to anyone who asks to see them. [Read more…]