Checks written before a person’s death can be included in the decedent’s estate, depending on various factors. Let’s explore what an estate is, how it is handled, and what happens to checks written before death.
- What is an estate?
An estate refers to the total assets and liabilities that a person leaves behind after their death. It includes everything the person owned, such as real estate, bank accounts, investments, personal belongings, and other property. The process of handling a person’s estate after their death is known as estate administration or probate.
- Probate:
Probate is the legal process through which the court validates a deceased person’s will (if there is one) and oversees the distribution of their assets to the rightful beneficiaries or heirs. If the person dies without a will (intestate), the court will distribute the assets according to the state’s laws of intestacy.
- Role of Executor/Administrator:
The person named in the will or appointed by the court to handle the estate’s administration is called the executor (if male) or executrix (if female) or administrator if there is no will. The executor’s role is to gather and safeguard the deceased person’s assets, pay off debts and taxes, and distribute the remaining assets to beneficiaries or heirs as per the will or intestacy laws.
- Checks Written Before Death:
Checks written by the decedent before their death may be considered part of the estate if they remain uncashed or undeposited at the time of death. These checks could include payments made to the decedent themselves or to other individuals or entities.
- Estate Inventory:
As part of the probate process, the executor or administrator will create an inventory of all the assets owned by the decedent at the time of their death. This includes bank accounts, stocks, real estate, personal property, and any uncashed checks that have not been properly delivered to their intended recipients.
- Distribution of Assets:
The distribution of assets, including any uncashed checks, will be done according to the instructions in the decedent’s will (if there is one) or according to state laws of intestacy. The executor will settle any debts, taxes, and expenses before distributing the remaining assets to the beneficiaries or heirs.
- Jointly Owned Accounts:
It’s important to note that certain assets, such as joint bank accounts or property held jointly with right of survivorship, may not be included in the probate process and would instead pass directly to the surviving co-owner.
- Professional Assistance:
Probate laws and regulations vary by jurisdiction, and the probate process can be complex. Seeking the guidance of Matthew Jennings, JD, MBA, EA, RFC®, CEP®, CES™, aka Tax King Matt can be extremely beneficial in ensuring that the decedent’s assets are handled appropriately, and that the estate administration process proceeds smoothly.
Overall, checks written before a person’s death can be included in the decedent’s estate and will be subject to the probate process to determine how they will be distributed according to the decedent’s wishes or state laws.