by Mark Stuart Ellison

Created on: June 11, 2009

Serving as executor or administrator of an estate can be daunting. Here are some tips to make your life easier and save money.

Your attorney's fees will be reduced to the extent that you perform estate administration, which includes gathering information, marshaling assets, and distributing property.

If the deceased is a loved one, allow time for grieving. You can't be effective if you're an emotional wreck.

An executor is named in a Will, which, after the decedent's death, is offered for probate in the surrogate's court of the county and state of the decedent's domicile. The court appoints an administrator when a person dies without a Will.

Executors and administrators are fiduciaries. They hold positions of trust and answer to courts.

Estate administration is time-consuming. If you can't spare the time, don't serve.

Hire a qualified lawyer if the estate requires the filing of estate tax returns, fiduciary income tax returns, or a probate or administration proceeding.

Many states allow a small estates proceeding, which is a simplified process which substitutes for probate or formal court administration. The decedent's next of kin files a short form and pays a $1 fee.

In New York, a small estate is one in which the decedent left no more than $30,000 in personal property. Small estates usually don't require a lawyer or accountant.

Substantial estates must file one or more estate tax returns. An estate tax return is a snapshot of the decedent's assets and liabilities at death. For decedents dying in 2009, a federal estate tax return (Form 706) is required for gross estates of $3.5 million or more. The filing requirement for a New York estate tax return (Form ET-706) is $1 million.

A fiduciary income tax return is used to compute an estate's income tax. The executor or administrator of an estate must file a federal fiduciary income tax return (Form 1041) for each fiscal year that the estate's income is at least $600, or if a beneficiary of the estate is a non-resident alien.

Have the following information handy before meeting with your lawyer.

Make a list of the names, addresses, ages, and Social Security numbers of all next of kin and people receiving bequests under the Will. Tax identification numbers of charities can be obtained by calling their corporate offices or visiting their websites.

Gather copies of all recent bank and brokerage statements on which the decedent's name appears, including joint accounts and those for a named beneficiary.

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