How to Deal With A Death in the Family and Still Run Your Small Business

As a small business owner we have to deal with tax law changes, local ordinances, environmental laws, Worker's Compensation, etc. Just when we thought we had everything under control, something terrible happenes. A death in the family. Oh my God you say? What do I do now? Well since I have been there, let me tell you what you need to know.

When someone close died in my life, I plunged immediately into an unfamiliar state of emotion, frustration, anxiety and grief. Needless to say, I wasn't any good to my business. I couldn't make decisions and was totally helpless not knowing what to do. After talking to financial advisors, attorneys and accountants, all of which was very time consuming and extremely costly, I learned that I had a lot more to learn.

If you have a death in the family and all of a sudden you realize you are in charge, gather the following information before consulting the professionals. It will save you time away from your business and relieve some of the stress. Not to mention make it easier for your consultants and saving you money. Here is a list of the things you may need to do to settle the estate and who can help you with answers:

GENERAL PROCESS FOR ESTATE SETTLEMENT

Send for Copies of Death Certificate

Gather Information on Estate Assets: Executor, Trustee, Family Members, Financial Advisors

Meetings With Estate Planning Attorney, Accountant, Financial Advisors

Valuation of Assets - Date of Death or Alternate Date Six Months Later: Executor, Trustee, Family Members, Financial Advisors

Get Appraisals for Real Property and Business Interests: Executor, Trustee, Family Members

Preparation and Filing of United States Estate Tax Return Form 706: Attorney

Preparation of Estate Settlement Allocation Schedule: Attorney

Preparation and Filing of Estate Income Tax Return: Attorney and Accountant

Meetings With Family To Determine Appropriate Reallocation of Estate Assets

Consider - Assets and Amounts to be Placed Into A/B, A/B/C or Other Trusts, Needs And Abilities Of Surviving Spouse, Family Gifting Programs: Executor, Trustee, Family Members, Financial Advisors

Set Up Listing of Buys/Sells for Schedule D of the Applicable Income Tax Returns: Executor, Trustee, Family Members, Financial Advisors

Transfer and Change of Title/Ownership Registration of Estate Assets into Newly Created Trusts, Existing Trusts, Business, Joint or Personal Accounts: Executor, Trustee, Family Members, Financial Advisors

Preparation and Filing of Applicable Joint and/or Individual Income Tax Returns: Accountant

One of the hardest parts of estate settling I found was the filing of the Estate Tax Return. The following is much of the information you will need. Your accountant and attorney will ask for it so you may as well have it ready.

INFORMATION NEEDED FOR UNITED STATES ESTATE TAX RETURN

FOR EACH ASSET IN THE ESTATE YOU WILL NEED TO INDICATE THE OWNERSHIP. FOR EXAMPLE: DECEDENT, SPOUSE, JOINT WITH SPOUSE, JOINT WITH OTHER JOINT TENANTS, TENANTS IN COMMON, LIMITED PARTNERSHIP, GENERAL PARTNERSHIP, PART OF BUSINESS INTEREST

Real Estate:

Description, Property Appraisal, Valuation Include Personal Residence Here If Applicable

Stocks and Bonds:

Description, CUSIP Number, Number of Shares, Price Per Share, Bond Par Value, Number of Bonds, Price Per Bond, Total Value

Mortgages and Notes:

Face Value and Unpaid Balance, Date of Mortgage or Note, Date of Maturity, Name of Maker, Property Mortgaged, Interest Dates and Rate of Interest

Cash:

Name and Address of Financial Institution, Account Balance, Account Number, Nature of Account - Checking, Savings, C.D.'s

Insurance on Life: Name of Insurance Company, Policy Number, Number of Decedents: Form 712 Life Insurance Statement from Company, Include - Insurance on Decedent's life receivable by or for benefit of estate and receivable by beneficiaries other than the estate

Jointly Owned Property:

Information as indicated above - Interests Held By Decedent and Spouse as the Only Joint Tenant, All Other Joint Tenants

Other Misc. Property:

In this section list items not included in any other;

section above such as -

Debts Due the Decedent

Interests in Business

Interests in Partnership or Unincorporated Business

Insurance on Life of Another

Section 2044 (QTIP from Prior Transfer) Property

Claims, Judgements

Rights, Royalties, Leaseholds

Reversionary or Remainder Interests

Shares in Trust Funds

Household Goods and Personal Effects

Automobiles, Boats, R.V.'s

Annuities, IRA's

Name of Financial Institution,

Trustee or Custodian

Pensions:

Description Account Number, Account Value, Beneficiary Information; Transfers During,

If Applicable, All Necessary Information Decedents Life:

Powers of Appointment:

If Applicable, All Necessary Information

In addition to all of the above information for the federal estate tax return, you will need information including descriptions, asset values and expense amounts for the following allowable estate deductions:

Funeral Expenses
Expenses Incurred in Administering Property Subject to Claims
Debts of the Decedent
Mortgages and Liens
Net Losses During the Administration
Expenses Incurred in Administering Property Not Subject To Claims
Bequests to Surviving Spouse
Charitable, Public and Similar Gifts and Bequests

I hope you never have to use this information. But if you do, this will save you thousands of dollars in consulting fees, weeks of lost revenues from your business and a lot the stress, hardship and anxiety I went through.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

---

Powered by Feedzilla

Websites For Sale

Master Resell Rights Ebooks

GoodBye GrandMa

My dearest Grandma, I will never forget you & sorry... Read More

Silent Tears - from a Norwegian Hospital

Silent tears hit hospital-white sheets. The young Pakistani mother holds... Read More

Cultivate a Friendship with Death

Why We Fear Death"Men fear death as children fear to... Read More

How to Deal with Suicide and Euthenasia

The following is a report that indicates how you might... Read More

We are the Reflection of our Lives: How to Survive Loss & Humility

Everyday, I look in the mirror to see the face... Read More

Dads, Life, and Death

When he looked at me, it was clear my father... Read More

Dying On the Inside: A Childs Grief

The impatient tooting of a car horn startled us into... Read More

When Change Comes (Dealing With Grief and Loss)

Needless to say, the time after loss is volatile and... Read More

Grief & Loss - Healing Your Broken Heart

What is it about Grief & Loss that upsets us... Read More

Euthanasia: How Will I Know When its Time?

Pippin needed assistance from his owner to get to his... Read More

Terrorism Worries: 10 Ways to Turn Fear into Hope

September 11th changed America and chances are it changed you.... Read More

Suicide in the Church, Part 3

Suicide strikes...AGAIN!This may wind up being the most important article... Read More

One Stray Tear

The delight lit my face as the couple turned the... Read More

Learning to Live Again

Overcoming death and beginning once again to live is the... Read More

Understanding Grief and Loss in Times of War and Disaster

There are many different kinds of losses we can experience... Read More

Whats It All About?

For most people life is a fairly ordinary existence -... Read More

Why Does God Allow Suffering?

Justin was a typical ten year old boy. He liked... Read More

Dealing With Grief and Loss - How to Mend a Broken Heart

What is it about Grief & Loss that upsets us... Read More

Moving Beyond Grief and Loss

In my work as a coach and therapist, I have... Read More

Whens Sarah Coming Home? Helping Your Child Understand Death

For most children, their first experience with grief comes with... Read More

Dealing With Tragedies (The 9/11 Tragedy)

September 11, 2001, marked yet another significant turning point in... Read More

Suicide Survivor

Suicide is a nightmare for survivors of loved ones. Death... Read More

Angel of Comfort... The Story

I am an Angel artist and several weeks ago while... Read More

Grief Support: The Don?ts

1) Don't try to make the grieving person feel better.... Read More

Dying? Not Me! Why You Should Plan for Transition

Remember the Eulogy projects we had to write back in... Read More