EFFICIENT ADMINISTRATION OF AN ESTATE AN INTRODUCTION TO THE TEXAS PROBATE SYSTEM · 2013-10-17 ·...

EFFICIENT ADMINISTRATION OF AN ESTATEAN INTRODUCTION TO THE TEXAS PROBATE SYSTEM

JAMES E. BRILLJames E. Brill, P.C.3636 Westheimer

Houston, Texas 77027713/626-7272

713/626-3606 [email protected]

State Bar of Texas6TH ANNUAL BUILDING BLOCKS OF WILLS,

ESTATES AND PROBATEJanuary 21, 2005

Via Satellite

CHAPTER 3.3

© 2003 James E. Brill. Extracts from Texas Probate System - 3rd Edition are used with permission of the author and of

the State Bar of Texas.

Efficient Administration of an Estate:An Introduction To The Texas Probate System Chapter 3

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TABLE OF CONTENTS

EFFICIENT ADMINISTRATION OF AN ESTATE- AN INTRODUCTION TO THE TEXAS PROBATE SYSTEM

I. SUBSTANTIVE SYSTEMS IN GENERAL 1A. Benefits of substantive system 1B. Anatomy of a substantive system 1

II. THE TEXAS PROBATE SYSTEM 1A. Background and early editions 1B. Application of general systems principles to the Texas Probate System 1C. Eight different probate procedures covered in Texas Probate System -

Third Revised Edition 2D. Component parts of the Texas Probate System - Third Revised Edition 2E. What the new system includes 2F. Ordering information 2

III. CONCLUSION 2

IV. DEMONSTRATING THE SYSTEM 3A. Fact Situation 3B. Applying the system to the fact situation 3

1. Extract from Master Information List (MIL) 42. Worksheet 1 53. Special Instruction 68 - Independent Administration (IA) 64. Pages 33 -37 from Checkplan 75. Form 14 - Proof of Decedent’s Handwriting and Signature 126. Letter 17 - Witness to Decedent’s Handwriting and Signature 137. Properly completed Form 14 148. Properly completed Letter 17 159. Extract from Significant Date List 16

V. ATTACHMENTS1. How To Use This System 172. Index to Special Instructions 203. MIL Cover Page 254. Index to Forms 265. Index to Letters 316. Index to Furnished Forms 357. Index to Worksheets 368. Checkplan Table of Contents 379. Probate Chart 38

Efficient Administration of an Estate:An Introduction To The Texas Probate System Chapter 3

James E. BrillHouston, Texas

EFFICIENT ADMINISTRATION OF ANESTATE - AN INTRODUCTION TO THETEXAS PROBATE SYSTEM

I. SUBSTANTIVE SYSTEMS IN GENERAL.

A substantive system is not just a form book. A typicalsystem does not cover all situations, but does cover thosesituations that arise in a typical transaction. It separatesmatters that require the attention of a lawyer from thosethat are factual, administrative, or repetitive. A system isa valuable training tool. Its proper use will reduce lawyertime without significantly increasing staff time.

A. Benefits of substantive systems.

1. Written procedures.2. Easy delegation of work.3. Standardization of materials and format.4. Increased productivity.5. Adaptation for computer technology.6. Management of professional time.

B. Anatomy of a substantive system. Every completesubstantive system must contain at least seven parts:

1. List of documents and information needed from theclient.2. A central place to record information with each facthaving a unique number.3. A method of determination of due dates and deadlinesto be integrated into the docket control system of the firm.4. A checkplan of all activities to be considered and, ifapplicable, to be performed.5. Standardized forms, correspondence, and otherdocuments.6. An explanation of the procedures.7. Coordination and sequencing of all of the parts.

II. THE TEXAS PROBATE SYSTEMS

A. Background and early editions.

1. The first substantive systems were devised by the UtahLaw Research Institute under the leadership of Kline D.Strong and were introduced in October, 1971.

2. The Texas Probate System was first published by theState Bar of Texas in 1972 to cover only independentadministrations and muniment of title proceedings. In1976, procedures for handling small estates and otherforms of administration were added. Complete revisionswere published in 1983 and 1993 and a supplementappeared in 1997.

3. The Texas Probate System - Third Revised Editionwas published in June 2003 and is the current version.

Like earlier editions, it is designed to let the lawyer utilizethe talents and skills of non-lawyers.

B. Application of general systems principles to theTexas Probate System.

1. List of Documents and Information Needed From theClient. Getting all of the facts is the number one problemfaced by every lawyer. Without all the appropriateinformation, the lawyer cannot properly represent theclient. The listing of potentially useful facts is as broad aspossible so as to apply to every estate. Such a list is mosthelpful when furnished to the client prior to the initialappointment so that the information can be available at thatfirst meeting.

2. Central Place to Record Information. This is referredto as a Master Information List or MIL. It is designed tolet you record all information in one place rather than onthe numerous scraps of paper lawyers frequently use. Itsuse will also ensure that no essential information will beoverlooked and will permit you to recover theinformation in an orderly and systematic manner ratherthan in haphazard fashion. Most information is factual innature and much of it can be obtained and recorded bynon professional members of the staff. The MIL providesa record of the facts that were considered and that formedthe basis for the decisions that were made.

3. Unique Numbering System. Just as there is a space inthe MIL for each separate factual item, each of these itemshas a separate and unique number. For example, thedecedent's name is number 1.01; the date of death, number1.04; the name of the executor, number 7.01; and so forth.Although such factual information would vary from oneestate to another, these particular numbers would be thesame for every estate. The usefulness of the numbersoccurs when factual information is required to complete aform or prepare a letter. The "blank" in that form or lettercontains a number that corresponds to the MIL and byreferring to that MIL number for the particular estate, thefactual material is instantly available for completion of thedocument.

4. Determination of Due Dates/Deadlines. The significantdates for a decedent’s estate include due dates for hearings,for filing governmental returns, for giving notices, etc.The place for recording these dates is referred to asSignificant Date List. This list tells you how to determinethe exact due dates for that particular client's estate. Oncethose dates have been determined, they must be integratedinto the regular office reminder system.

5. Checkplan of Activities. The Checkplan contains acomprehensive listing of all activities which must beconsidered, and if applicable, which must be performed.Through its proper use and coordination with the otherparts of a system, the gathering of information and thepreparation of forms and letters can be virtually selfadministering. By its use, you are assured that allregularly encountered matters affecting the estate will beconsidered. It serves as a reminder of the commonproblems to be considered and indicates the routine action

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Efficient Administration of An Estate:An Introduction To The Texas Probate System Chapter 3

to take in most of these situations. Columns are providedfor the lawyer to indicate the member of the lawyer's staffwho is to perform the activity or to mark if the particularactivity does not apply to this transaction. As an activityhas been considered and the proper action has been taken,the person taking that action should initial the proper blankand indicate the date that the action was taken. Thecheckplan is maintained in the client's file as a record ofwhat has been considered, what has been done, and whatstill remains to be done.

6. Standardized Forms, Correspondence, and OtherDocuments. Letters and forms of a standard, routine, andrepetitive nature have been prepared in such a manner asto fit the generally recurring situations. The purpose ofeach of these documents appears at the top and instructionsfor preparing them appear at the bottom. Many of thesedocuments are to be completed with factual informationrelating to the particular client. In those instances, boldface numbers are cross-referenced to the numbers in theMIL where the factual data has been recorded. Byreferring to the number in the MIL for the particularclient, it is possible to complete the document.

7. Explanation of Procedures. Special Instructionsexplain the various procedures involved in an estate.Essentially, these instructions are like footnotes. As youproceed with the steps outlined in the checkplan, referenceshould be made to these Special Instructions so that thosewho are generally unfamiliar with the procedure mayobtain basic information for guidance. Since a system isgrounded upon the establishment of an efficientadministrative process, many substantive and technicalquestions are not covered in detail and further referencemust be made to appropriate technical sources.

8. Coordination and Sequencing of all of the Parts. Thebasic coordination is provided by the use of the numberingsystem of the MIL and the comprehensive checkplan.When used as a system, the lawyer's time will be reducedwithout any significant increase in staff time, the lawyerwill have more time for other practice, the quality andtimeliness of the services will be enhanced, and theefficiency of the practice will be multiplied.

C. Eight different probate procedures covered inTexas Probate System - Third Revised Edition.

1. Independent administration specified under decedent'swill2. Muniment of title3. Proceedings to determine heirship4. Small estates5. Administration with dependent executor6. Administration with will annexed7. Regular dependent administration8. Temporary dependent administration

D. Component parts of the Texas Probate System -Third Revised Edition.

1. Introduction - explains the general concept ofsystems.

2. How To Use This System - describes the TexasProbate System - Third Revised Edition and tells how touse it.

3. Special Instructions - provides detailed informationconcerning particular procedures.

4. Forms - contains forms of a standard, routine, andrepetitive nature.

5. Letters - contains correspondence of a standard,routine, and repetitive nature.

6. Furnished Forms - contains printed forms furnishedby governmental agencies.

7. Worksheets - contains guidance for particulartransactions.

8. Master Information List (MIL) - provides numberedspaces for the systematic recording of information. Thesenumbered spaces are cross referenced to the numbers in theletters, forms, and furnished forms.

9. Checkplan - a single comprehensive checklist of allactivities that must be considered in the administration andsettlement of a decedent's estate.

10. Significant Date List - a method for identifying andrecording the critical dates and deadlines.

11. Indices - separate subject matter indices for specialinstructions, forms, worksheets, and furnished forms, plusan index for the addressees of the letters.

E. What The New System Includes.

Looseleaf volume (882 pages) plus CD-ROM. TheCD contains the Forms and Letters from the System inboth Wordperfect 10 and Microsoft Word 2000 formats.The disk also contains in PDF format, the ProbateInformation List, the Checkplan, Significant Date List,Master Information List (MIL), Special Instruction 80 foruse in preparing a federal estate tax return, the ProbateChart, and the Texas Lawyer’s Creed.

F. Ordering Information.

Texas Bar CLE, State Bar of Texas, P. O. Box 12487,Austin, TX 78711 (800/204-2222). Cost $200.00 plusshipping and tax.

III. CONCLUSION.

Proper management practices are mandatory andmust become a matter of routine. Systematizing ourpractices offers the greatest opportunity for us toincrease the volume and quality of our services withoutincreasing costs. As lawyers we must take a realisticview of ourselves and devote adequate time andresources to improve the way we practice law. TheTexas Probate System - Third Revised Edition is avaluable resource that will help you provide better and

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more timely service for your clients.

IV. DEMONSTRATING THE SYSTEM.

A. Fact Situation.

Donald H. Cox died in Houston, Texas on December 8,2003 at the age of 79. He is survived by his widow, ElaineH. Cox, and by two adult children. He had a will signedon May 30, 2000, leaving all of his estate to his wife andnaming her to be independent executor of his estate. Mrs.Cox recently made an appointment with James E. Brill to“probate the Will.” Mr. Brill made the appointment andfollowed up by sending her a list of the items for her tolocate and bring to their first meeting (the ProbateInformation List from the Texas Probate System - 3rd

Edition). At that first meeting Mr. Brill learned that Mr.Cox had a handwritten will.

B. Applying The System To The Fact Situation.

1. Extract from Master Information List (MIL) completedto conform to the fact situation.

2. Worksheet 1 used to determine proper probateproceedings.

3. Special Instruction 68 explaining IndependentAdministrations.

4. Pages 33-37 from Checkplan to determine steps to

consider and actions to take during an independentadministration.

5. Form to use for Proof of Decedent’s Handwriting andSignature (Form 14).

6. Letter to each witness who will testify as to Decedent’shandwriting and signature (Letter 17).

7. Properly completed Proof of Decedent’s Handwritingand Signature (Form 14).

8. Properly completed letter to witness who will testifyas to Decedent’s handwriting and signature (Letter 17).

9. Extract from Significant Date List.

V. ATTACHMENTS.

1. How To Use This System.2. Index to Special Instructions3. MIL cover page4. Index to Forms5. Index to Letters6. Index to Furnished Forms7. Index to Worksheets8. Checkplan Table of Contents9. Probate Chart

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EXTRACT FROM MASTER INFORMATION LIST (MIL)

1.01 D’s name as shown on Will Donald H. Cox 1.07 Date of D’s death December 8, 2003 1.09 Place of D’s death Houston, Texas 1.10 D’s age at death in whole years 79 1.11 D’s residence domicile at death Harris County, Texas 2.02 Date of D’s Will May 30, 2002 2.03 Is Will holographic? Yes No If no skip to Item 2.09. If yes, complete Item 6.11B and complete Items

2.04 through 2.08B for two people who can testify as to D’s handwriting and signature. If proof is to be bywritten deposition, indicate by the letters “T/D”.

(A) (B)

2.04 Name Sam Jones Mary Smith 2.05 Dear Mr. Jones Mrs. Smith 2.06 Address 123 Elm 321 Pine 2.07 City, State & Zip Houston, TX 77000 Houston, TX 77000 2.08 Phone number 713/555-1212 713/555-4321 6.01 Court Docket Number 22,870 6.02 D’s name to be used in probate proceedings DONALD H. COX 6.03 Name of Court in which filed Probate Court No. 1, Harris County 6.09 General description of the nature of D’s estate House, car, bank account, miscellaneous personal property

6.10 D’s estate has a probable value in excess of $ 5,000.00 6.13 Any children born to or adopted by D after date of Will? Yes No If yes, provide details here

6.14 If D was divorced after date of will, provide details here N/A

6.16 Name of Clerk of Court Beverly B. Kaufman 6.24 Scheduled time and date of hearing 10:00 a.m., February 3, 2004

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WORKSHEET 1 PROPER PROBATE PROCEDURE

Estate of

This Worksheet was formerly the Probate Pathfinder.

Circle the correct answer to the following questions. The instructions under each question will direct you to materials concerning a specific typeof administration which may apply to this estate.

1. Is there an URGENT AND IMMEDIATE need for a personal representative of the estate?

If the answer is YES go immediately to Special Instruction 57 - Temporary Dependent Administration.If the answer is NO go on to the next question.

2. Is there a written will?

If the answer is NO go to Question 6 below.If the answer is YES go on to the next question.

3. Is there a need for administration and are there debts which are not secured by real estate?

If the answer is NO see Special Instruction 73 - Muniment of Title.If the answer is YES go on to the next question.

4. Is there an "INDEPENDENT EXECUTOR WITHOUT BOND" named in the will who is alive, willing, and qualified?

If the answer is YES see Special Instruction 68 - Independent Administration.If the answer is NO see Special Instruction 17 - Testate and Intestate Dependent Administration and then go on to the nextquestion.

5. Is there an Executor named in the will who is alive, willing, and qualified, but who is not designated in the will as "Independent Executorwithout bond"?

If the answer is YES see Special Instruction 65 - Administration with Dependent Executor.If the answer is NO see Special Instruction 67 - Administration with Will Annexed.

6. Are you familiar with Proceedings in Lieu of Administration?

If the answer is YES go on to the next question.If the answer is NO see Special Instruction 29 - Procedures In Lieu of Administration and then go on to the next question.

7. Is the estate equal to or less than $50,000 exclusive of homestead and exempt property and do the nonexempt assets exceed all liabilitiesexclusive of those liabilities secured by homestead and exempt property?

If the answer is YES see Special Instruction 63 - Small Estates.If the answer is NO go on to the next question.

8. Is there a need for administration and are there debts which are not secured by real estate?

If the answer is NO see Special Instruction 60 - Proceedings to Determine Heirship.If the answer is YES see Special Instruction 69 - Regular Dependent Administration.

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SPECIAL INSTRUCTION 68 INDEPENDENT ADMINISTRATION(IA)

THE INDEPENDENT ADMINISTRATIONCOVERED IN THIS SYSTEM RELATES ONLY TOAN INDEPENDENT ADMINISTRATIONAUTHORIZED AND DIRECTED BY DECEDENT'SWILL, AND ALL RELATED MATERIALS ANDREFERENCES ARE LIMITED TO THAT KIND OFAN ADMINISTRATION.

Independent Administration is the administration of anestate without supervision by a court.

In Texas a person's will may provide for an "indepen-dent" administration of the estate if that person namesan independent executor and states that "no other ac-tion shall be had in the county court in relation to thesettlement of his estate than the probating and record-ing of his will, and the return of an inventory,appraisement and list of claims of the estate." ProbateCode, Section 145(b). This provision permits the es-tate to be administered without judicial supervision.

Probate Code, Section 145(c), provides that anindependent administration of an estate may be createdwhere all of the distributees of the decedent agree onthe advisability of an independent administration insituations normally covered by administration withwill annexed or administration with an independentexecutor and even if the decedent did not have a will. Following decedent’s death, the independent executornamed in the will files the will for probate, has it ad-mitted, and takes and files the oath. Upon the filing ofthe oath, the independent executor is qualified and,unless limited by the will, has the power to performany act necessary to settle the estate which might bedone under the authority of a court in an administra-tion where no will existed. In addition to those pow-ers, the independent executor has any additional dis-cretionary authority granted by the will.

Independent administration is far more convenient,efficient, and inexpensive than any other kind ofadministration. There is more flexibility in the man-agement of the estate and there usually will be sub-stantial savings in court costs and attorney's fees.However, if the estate is insolvent or potentially insol-vent, an independent administration might not be thebest procedure.

In order to have an independent administration, it isnecessary for the decedent to have had a will whichprovides for an independent executor or independent

executrix, and that named person must be able to qual-ify and act as such. Only a person named in the will asindependent executor or independent executrix mayqualify and act as such, and even though the will pro-vides for an independent executor, where one does notqualify, no independent administration under ProbateCode, Section 145(b) is possible.

If no executor can qualify and if an administration isnecessary, the proper procedure to use is Administra-tion With Will Annexed. More detailed informationabout these proceedings appears in Special Instruction67 - Administration With Will Annexed.

After a will naming an independent executor has beenprobated and the executor has qualified by taking theoath, the executor must prepare and file an inventory,appraisement, and list of claims, to be approved by thecourt. After such approval, as long as the estate is rep-resented by an independent executor, there is no fur-ther action of any nature to be taken in court exceptwhere the Probate Code specifically provides for someother action. Probate Code, Sections 149 and 149Aare exceptions to that rule.

Most of the general Probate Code provisions for giv-ing notice to creditors and for establishing claimsagainst an estate are applicable to independentadministrations. Probate Code, Section 146. Theseprovisions require an independent executor to observeall provisions of the Probate Code regarding notice tocreditors and classification and priority of claims oncesuch claims have been presented.

Even though the will provides for an independentexecutor, it is not always necessary to subject the es-tate to administration. Where there are no debts orspecial assets to transfer, an alternative procedure is toprobate the will as a muniment of title. When usingthis procedure, you should refer to Special Instruction73 - Muniment of Title.

However, if there is a choice between an independentadministration and a muniment of title proceeding, welean toward the independent administration. If thereare securities to be transferred, the independentadministration is the preferred method. For more in-formation, see “Independent Administration FromStart To Finish” by M. Keith Branyon in the coursematerials from the 2000 Advanced Estate PlanningAnd Probate Course, State Bar of Texas.

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INDEPENDENT ADMINISTRATION (IA)

NA L S DATE INITIALS

19. If independent administration (IA) is not the proper probate proce-dure, mark Items 19 through 21 of this Checkplan as not applicableand go to Item 22 of this Checkplan. If IA is the proper probate pro-cedure, go to Items 22 through 37 of this Checkplan and indicate thatthey are not applicable, and return here to do the following:

a. See Special Instruction 68 - Independent Administration (IA).

b. See Special Instruction 5 - Qualification of and Priority RightsTo Be Appointed Administrator or Executor to determine thatapplicant qualifies to serve as executor.

c. See Special Instruction 15 - Jurisdiction and Venue and prepareApplication for Probate of Will and Issuance of Letters Testa-mentary (Form 5).

d. Prepare Waiver and Renunciation of Right to Letters Testamen-tary (Form 96) for those preferentially entitled to serve as execu-tor who do not wish to serve and arrange for proper signaturebefore a notary.

e. Determine amount of filing fee, issue check for filing fee, andcharge to client’s account.

f. Take D’s original will and codicil(s) and original Application forProbate of Will and Issuance of Letters Testamentary (Form 5)and file with clerk of court. If Waiver and Renunciation of Rightto Letters Testamentary (Form 96) was prepared and has beensigned, file original with clerk of court. Enter date of this filingas Item 6.23 of MIL and complete Items 18 and 19 of SDL.

Note: When Application for Probate of Will and Issuance of Let-ters Testamentary (Form 5) is filed with the clerk of court, it mustbe accompanied by D’s original will and codicil(s), but the willand codicil(s) are left in their own manuscript covers or “bluebacks” and are not put in the same manuscript cover with the Ap-plication for Probate of Will and Issuance of Letters Testamen-tary (Form 5).

g. If a docket number has not been previously assigned to proceed-ings in this estate, obtain court docket number, enter it on ProbateChart, on cover page of MIL, and as Item 6.01 of MIL, and con-form office file copies.

h. Calculate the return date for the citation and enter as Item 20 ofSDL (see Special Instruction 16 - Citation and Hearing Date).


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i. Arrange for time and date of hearing on Application for Probateof Will and Issuance of Letters Testamentary (Form 5) and enteras Item 24 of SDL. Complete Item 25 of SDL and Item 6.24 ofMIL. If proof of proper execution must be made by alternatemethods (see Item 38 of this Checkplan), it will be necessary towait until all required proof has been assembled before the hear-ing can be scheduled.

(1) Prepare Proof of Death and Other Facts (Form 7) and placein file folder entitled “Court Proceedings.”

(2) If witness for Proof of Death and Other Facts (Form 7) isnot the named executor, prepare and send Letter 13 to wit-ness, together with a copy of the Proof of Death and OtherFacts (Form 7), to advise of the date and time of the hearingand of the need for the witness to appear in court.

j. If D’s will is self-proved, skip to Item 19n of this Checkplan.

k. If D’s will is not self-proved or attested, but is holographic, skipto Item 19m of this Checkplan.

l. If D’s will is attested, refer to Item 2.11 of MIL to determine theidentity of the attesting witness who will testify as to the properexecution of the will and determine if that witness will be avail-able to testify in court.

(1) If the witness will be available, do the following:

(a) Prepare Proof by Subscribing Witness (Form 8) andplace in file folder entitled “Court Proceedings.”

(b) Prepare and send Letter 14 to witness, together with acopy of the Proof by Subscribing Witness (Form 8) anda copy of D’s will, to advise of the date of the hearingand of the need for the witness to appear in court.

(2) If the witness will not be available to testify in court, deter-mine an alternate method of proving D’s will. If D’s will isto be proved by written interrogatories, see Item 38 of thisCheckplan and take appropriate action.

(3) Repeat procedures in this Item 19l for each attested codicil.

m. If D’s will is holographic and is neither attested nor self-proved,refer to Item 2.04 of MIL to determine the identity of the twowitnesses who will testify as to D’s handwriting and also deter-mine if each witness will be available to testify in court.

(1) For both of these witnesses who will testify in court, do thefollowing:

(a) Prepare Proof of Decedent’s Handwriting and Signature(Form 14) for each witness and place in file folder enti-tled “Court Proceedings.”


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(b) Prepare and send Letter 17 to each witness, togetherwith a copy of the Proof of Decedent’s Handwriting andSignature (Form 14) for that witness and a copy of D’swill, to advise witness of the date and time of the hear-ing and of the need for the witness to appear in court.

(2) For each witness who will not be available to testify in court,determine an alternate method of proving D’s will. If D’swill is to be proved by written interrogatories, see Item 38 ofthis Checkplan and take appropriate action.

(3) Repeat procedures in this Item 19m for each holographiccodicil.

n. Determine if any proposed executor is a nonresident of Texas.If so, do the following:

(1) Prepare Appointment of Resident Agent (Form 15 for eachnonresident individual executor and Form 16 for each non-resident corporate executor) and place in file folder entitled“Court Proceedings.”

(2) Prepare and send Letter 18 to each nonresident executor, to-gether with the original and one copy of Appointment ofResident Agent (Form 15 or Form 16).

(3) When Appointment of Resident Agent (Form 15 or Form 16)is received, place in file folder entitled “Court Proceedings.”

o. Prepare and send Letter 19 to each named executor, together witha copy of the Application for Probate of Will and Issuance ofLetters Testamentary (Form 5), to advise of the date and time ofhearing.

p. Prepare Order Admitting Will to Probate and Authorizing LettersTestamentary (Form 17) and place in file folder entitled “CourtProceedings.”

q. Review Item 2.58 of MIL, determine whether proposed executorwill sign oath in court or before a notary, prepare Oath (Form 18for each individual executor and Form 19 for each corporateexecutor), and place in file folder entitled “Court Proceedings.”

r. If hearing must be rescheduled, enter rescheduled date as Item6.24 of MIL and Item 26 of SDL, revise Item 25 of SDL, andnotify all executors and other witnesses of new date.

s. One business day before the hearing, call to remind all executorsand all witnesses of the time, date, and place of hearing.

20. For the hearing itself, do the following:

a. Assemble the following documents and take to hearing:

(1) Original copy of Proof of Death and Other Facts (Form 7)for person who will testify as to death, etc.


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(2) Original copy of Proof by Subscribing Witness (Form 8) orProof of Decedent’s Handwriting and Signature (Form 14)for each appropriate witness who will appear in court.

(3) Original copies of Appointment of Resident Agent (Form 15or Form 16).

(4) Original copy of Order Admitting Will to Probate and Au-thorizing Letters Testamentary (Form 17).

(5) Original copies of Oath (Form 18 or Form 19) for eachexecutor who will sign oath in court.

b. Determine if local rules of court require different or additionaldocuments or procedures and, if so, take appropriate action.

c. Attend hearing (see Special Instruction 18 - What To Do atHearing) and enter actual date of hearing as Item 6.25 of MILand Item 27 of SDL.

d. Enter the date the Order Admitting Will to Probate and Autho-rizing Letters Testamentary (Form 17) was signed by judge asItem 6.26 of MIL and Item 28 of SDL. Complete Items 29, 30,32, 34, and 35 of SDL. If appraisers were appointed, completeItems 6.42 through 6.46 of MIL.

e. Have executors who attend hearing sign their Oath (Form 18 orForm 19) before appropriate court official and file with clerk ofcourt. If these are the only executors, complete Items 6.38 and6.39 of MIL and Items 36 and 39 of SDL.

f. Order two letters testamentary from clerk of court and, if youpaid for them, charge to client’s account. If ordering by mail,determine appropriate number of letters and correct charge, issuecheck for payment, charge to client’s account, and prepare andsend Letter 2 to clerk of court. When received, place in filefolder entitled “Letters Testamentary.”

21. Follow-up. Refer to Item 2.58 of MIL. For each Oath (Form 18 orForm 19) that was not signed before a court official, prepare andsend Letter 20 to each executor who did not sign the oath in court,together with the original and one copy of Oath (Form 18 or Form19).

a. When all oaths are signed and returned, prepare and send Letter21 to clerk of court, together with the original Oaths (Form 18 orForm 19).

b. Determine the date on which the last Oath (Form 18 or Form 19)was filed and enter this date as Items 6.38 and 6.39 of MIL andas Item 36 of SDL. Also complete Items 40 through 43, 46, 48,50, and 52 of SDL and Items 6.85, 7.35 and 21.23 of MIL.


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c. If there were governmental and charitable beneficiaries, by thedate shown in Item 30 of SDL (thirty days after will admitted toprobate), do the following:

(1) Prepare and send by registered or certified mail, return re-ceipt requested, Letter 67 to the entity, together with appro-priate enclosures.

(2) Attach mailing receipt to file copy of Letter 67.

(3) When received, attach return receipt to file copy of Letter67.

(4) Prepare and send Letter 21 to clerk of court, along withphotocopy of Letter 67 and of return receipt for each entity.

d. Prepare and send Letter 22 to thank each witness, other thanexecutor(s), who appeared in court.

e. Prepare and send Letter 23 to executor(s) to advise of nature andextent of the duties of office and actions that will follow.

f. Conform file copies of all documents for dates and signatures.

g. Collect all of D’s records, books, title papers, and business pa-pers. If anyone refuses to deliver the same, file a complaint pur-suant to Probate Code, Section 75.

h. Skip to Item 39 of this Checkplan.


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FORM 14 PROOF OF DECEDENT’S HANDWRITING ANDSIGNATURE

NO. 6.01

ESTATE OF )( IN THE 6.03 COURT)(

6.02, )( OF)(

DECEASED )( 6.04 COUNTY, TEXAS

PROOF OF DECEDENT’S HANDWRITING AND SIGNATURE

On this day 2.04A or 2.04B (“Affiant”) personally appeared in open court and, after being duly sworn,stated the following:

I was personally acquainted with 6.02 (“Decedent”) and was well acquainted with the handwriting andsignature of Decedent. The document dated 2.02, now shown to me and which purports to be Decedent’s will,is wholly in the handwriting of Decedent, and Decedent’s signature is subscribed thereto. On that dateDecedent was of sound mind and had attained the age of eighteen years.

SIGNED on .

2.04A or 2.04B, Affiant2.06A or 2.06B2.07A or 2.07B

SUBSCRIBED AND SWORN TO BEFORE ME by 2.04A or 2.04B on .

6.16Clerk of the 6.03 Court of 6.04 County, Texas

By Deputy

Note: Two witnesses must appear in court to furnish this information. This form is to be prepared for each ofthese witnesses.

If D had a handwritten codicil, this form can be adapted by substituting the word “codicil” for the word “will.”


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LETTER 17 WITNESS TO DECEDENT’S HANDWRITING ANDSIGNATURE

Today’s date

2.04 2.06 2.07

Re: Estate of 6.02, Deceased (“Decedent”)

Dear 2.05:

This letter will confirm your willingness to appear as a witness and to testify concerning thehandwriting and signature of the above-named decedent.

Enclosed with this letter is a copy of the document that we believe is Decedent’s [(will)(codicil)] anda copy of your proposed testimony. Please examine the copy of the will to be sure you can identify it, andthen be sure that you can make the statements contemplated in the Proof of Decedent’s Handwriting andSignature.

I have arranged for a hearing at *(time) on *(day of the week), *(date) in the courtroom of the 6.03Court of 6.04 County, Texas. This courtroom is located on the 6.05 floor of the (name of building, e.g.,County Courthouse). The proceedings will not take long, and your testimony will be limited to the matterscontained in the enclosed document.

A member of my staff will call you the day before the hearing to remind you of it. Please do not hesitateto call if you have any questions. Thank you very much for your help.

Yours very truly,

Attorney’s name

EnclosuresCopy of [(will)(codicil)]Copy of Proof of Decedent’s Handwriting and Signature

*Obtain time and date for hearing from Significant Date List (SDL) or from Item 6.24 of MIL.

Enclose a copy of the will or codicil and a copy of the Proof of Decedent’s Handwriting and Signature (Form14) that was prepared for the particular witness. Make and send a copy of this letter and of the proof to eachclient, applicant, executor, administrator, heir, and beneficiary.


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14

NO. 22,870

ESTATE OF )( IN PROBATE COURT)(

DONALD H. COX, )( NUMBER ONE OF)(

DECEASED )( HARRIS COUNTY, TEXASPROOF OF DECEDENT'S HANDWRITING AND SIGNATURE

On this day SAM JONES ("Affiant") personally appeared in Open Court, and after being dulysworn, stated the following:

I was personally acquainted with DONALD H. COX, ("Decedent") and was well acquaintedwith the handwriting and signature of Decedent. The document dated May 29, 2000, now shown tome and which purports to be Decedent's Will, is wholly in the handwriting of Decedent and Dece-dent's signature is subscribed thereto. On that date Decedent was of sound mind and had attainedthe age of eighteen years.

SIGNED this day of February, 2004.

SAM JONES, Affiant123 ElmHouston, Texas 77000

SUBSCRIBED AND SWORN TO BEFORE ME BY SAM JONES this day of Feb-ruary, 2004, to certify which witness my hand and seal of office.

BEVERLY B. KAUFMANClerk of Probate Court Number One of Harris County,Texas

By Deputy

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January 16, 2004

Mr. Sam Jones123 ElmHouston, TX 77000

Re: Estate of Donald H. Cox, Deceased

Dear Mr. Jones:

This letter will confirm your willingness to appear as a witness and to testify concerning the hand-writing and signature of the above named Decedent.

Enclosed with this letter is a copy of the document which we believe is Decedent's Will and a copyof your proposed testimony. Please examine the copy of the Will to be sure you can identify it andthen be sure that you can make the statements contemplated in the Proof of Decedent's Handwrit-ing and Signature.

I have arranged for a hearing at 10:00 a.m. on Tuesday, February 3, 2004, in the courtroom of Pro-bate Court Number One of Harris County, Texas. This courtroom is located on the 5th floor of theFamily Law Center (1115 Congress) at the corner of San Jacinto and Franklin in Houston, Texas.The proceedings will not take long and your testimony will be limited to the matters contained in theenclosed document.

A member of my staff will call you the day before the hearing to remind you of it. Please do nothesitate to call if you have any questions. Thank you very much for your help.

Sincerely yours,

James E. Brill

JEB/dtdEnclosures Copy of Will Copy of Proof of Decedent's Handwriting and Signature

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EXTRACT FROM SIGNIFICANT DATE LIST (SDL)

Determination of Date of Document, Event, or Action

1. Date of Will–as shown on Will itself (Item 2.02 of MIL).NOTE: ITEM 1 IS NOT APPLICABLE TO RDA OR

PDH

3. Date of Death–as shown on death certificate (Item 1.07 ofMIL).

6. Date five days (actually 120 hours) after date of D’sdeath–This is the date to which D’s heirs and beneficiaries(including life insurance beneficiaries) must have survivedor they will be deemed to have predeceased D unless D’sWill directs otherwise.

9. Date nine months after date of D’s death–Enter this date asItems 26.19 and 26.28 of MIL. This is the date for:a. Filing a disclaimer or renunciation of bequest or inher-

itance and receipt of copy by each Executor or Admin-istrator.

b. Filing the United States Estate (and Generation-Skip-ping Transfer) Tax Return (FF20) and paying the taxesunless an extension is granted.(1) First extended date (Item 26.29 of MIL)

c. Filing D’s final gift tax return unless due on an earlierdate (Refer to Items 59 and 60 of this SDL).

d. Filing the Texas Inheritance Return - Federal EstateTax Credit (FF 12) and paying the taxes unless an ex-tension is granted.(1) First extended date (Item 26.20 of MIL)

18. Date of filing Application (IA, MT, PDH, ADE, AWA, orRDA) or small estate affidavit and order (SE)–as shown onreceipt issued by clerk of court (Item 6.23 of MIL).NOTE: For SE, this date must be after the date shownin Item 7 of this SDL.

20. Return date for Citation by Posting–First Monday followingexpiration of ten days’ notice by posting.

24. Date scheduled for hearing on application–as scheduled byclerk of the court (Item 6.24 of MIL).

25. One business day before scheduled date for hearing on ap-plication–Call witnesses on this date.

Actual Date

May 30, 2002

December 8, 2003

December 13, 2003

September 8, 2004

January 21, 2004

February 2, 2004

February 3, 2004

February 2, 2004

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HOW TO USE THIS SYSTEM

THIS VOLUME IS NOT A FORM BOOK!

Throughout this System we have tried to guide you to the procedure requiring the leastamount of activity to conclude the administration process. This effort on our part is not to be takenas criticism of any of the procedures provided by the Probate Code but is specifically designed topermit you to close the estate and get the assets to the family as rapidly and as inexpensively aspossible. Regardless of the particular procedure you follow, you should make every effort toconclude the process as soon as is practicable.

This 2003 Texas Probate System (“System”) supersedes all earlier versions of the System.

This System is divided into the following sections:

Introduction

How To Use This System

Special Instructions

Master Information List (MIL)

Forms

Letters

Furnished Forms

Worksheets

Checkplan

Significant Date List

The Introduction provides general information concerning the System.

How To Use This System gives you the basic steps to follow and tells you how to use theSystem. It also contains a copy of the Probate Chart.

The Special Instructions provide detailed information concerning particular probateprocedures. Essentially, these are footnotes. As you proceed in the administration of an estate, youwill be referred to these Special Instructions for additional information or guidance. Since thisSystem is grounded on the establishment of an efficient administrative process, many substantiveand technical questions are not covered in detail, and you are cautioned to refer to other appropriatesources for the answers to your questions.

The Master Information List or MIL is the heart of the System. A separate MIL is used foreach estate and is kept in the file for that estate. In some offices the MIL is kept in a notebook forthat estate. The MIL is an interview guide that contains a list of questions to ask to obtain requiredfactual information and provides a systematic means for recording that information. It also containsnumbered and lettered spaces for the systematic recording of information concerning a decedent,the decedent’s family, assets, taxes, debts, probate proceedings, and other affairs. Each fact has itsunique number, and these numbers appear throughout this System. Its proper use will let you record


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all information in one place rather than on the numerous scraps of paper you now use. Its use willalso ensure that no essential information will be overlooked or be recorded in a haphazard fashion.Since most of this information is factual in nature, much of it can be obtained and recorded by alegal assistant or secretary. For the System to function at its maximum potential, most of the MILshould be completed before any documents are prepared. Upon the conclusion of the administration,the MIL should be preserved in the client’s file as a record of the facts that were considered to formthe basis for the decisions that were made.

Documents you will need to prepare for court proceedings are called Forms. The purposeof each form is printed at the top, and the instructions for preparing the form are printed at thebottom. These forms also contain bold-faced numbers, which are cross-referenced to the numbersin the Master Information List (MIL) where the necessary data is to be recorded. If that portion ofthe MIL has been completed, the form can be prepared. All the forms are to be prepared with thevariable information inserted at the proper points. (To avoid the necessity of retyping, word-processing files of the forms are included in the CD-ROM that accompanies the printed System.)

Before preparing a form, always review the instructions, and never copy the descriptions,numbers, notes, or instructions when preparing that form. Bold-faced material provides a highlightto alternative language or is instructional or descriptive in nature. One or more asterisks (* or **)appearing on the form refer you to a footnote for a possible addition or deletion. Brackets “[ ]” areused to indicate the beginning of the alternate words or phrases to be considered with an appropriateone to be selected. The various alternatives are then enclosed in parentheses “( )” within thebrackets. An example appears in paragraph 10 on the second page of Form 5. When one of thesealternatives has been selected, the brackets, parentheses, and other alternative materials are to bedeleted and only the desired word or phrase is to be included in the finished document.

Letters of a standard, routine, and repetitive nature are contained in that section. The purposeof each letter is printed at the top, and the instructions for preparing the letter are printed at thebottom. These letters also contain bold-faced numbers that are cross-referenced to the MIL. Onceagain, if that portion of the MIL has been completed, the letter can be prepared. Brackets,parentheses, and asterisks are also used in the letters, which are prepared in the same manner as theforms. (Word-processing files of the letters are also included in the CD-ROM.)

Furnished Forms (FF) are printed forms furnished by governmental agencies or outsidesources. The purpose of each form is printed at the top, and the instructions for preparing the formhave been printed at the bottom. The blanks within these furnished forms also contain numbers thatare cross-referenced to the numbers in the MIL. To prepare a furnished form, it will be necessaryfor you to obtain the form from the appropriate agency or other source. In some instances, there isan on-line version of the furnished form that can be completed and printed.

Worksheets are designed to guide you through proper decisions, to make calculations, or tomaintain a single summary record of multiple related transactions (such as the status of transfers ofdifferent securities).

To assist you in calculating and recording important dates for all proceedings, there is aSignificant Date List (SDL) that is used for each estate. While this SDL reminds you of the criticaldates and deadlines, you must dovetail the calculated dates into your regular office reminder system.You should never put your file away until you have entered the next activity in that calendar. As youdetermine the date for a future activity, you should record it in your office calendar, reminder, ortickler system. This is particularly important as to those dates marked with an asterisk (*). The SDLfor the estate is also kept in the file (or notebook) for that estate.

In addition to the SDL and your office reminder system, the Probate Chart can be used toprovide a compact summary of all probate matters handled by your office. In a highly sophisticatedpractice involving numerous estates, a calendar can be incorporated into a probate board. An


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illustrated discussion of this method appeared in 5 Legal Economics No. 5, Page 44, published bythe American Bar Association.

A sample chart follows this material. To use it, simply complete the necessary informationconcerning the estates represented by your office. As you calculate dates for an estate on the SDL,you will post those dates to your reminder system and to this chart. No attempt has been made foroverall chronological arrangement, since this is intended to be only a status chart. It should be postedin a conspicuous place in your office (but not where it is readily seen by clients).

There is a single Checkplan containing a comprehensive checklist of all activities to beconsidered and, if applicable, to be performed in handling a decedent’s estate. Through its properuse and coordination with the other parts of the System, the gathering of information, the transferof assets, and the preparation of forms and letters can be virtually self-administering. The Checkplanis precisely coordinated with the numbering system of the MIL, with the Significant Date List, andwith the Letters, Forms, Furnished Forms, and Special Instructions. It is a reminder of the commonproblems to be considered and tells you the routine action to take in most of these situations.

You will be well advised to carefully review the entire Checkplan before beginning action.If an item does not apply to that estate, mark the “NA” column and move on to the next item. If thenext item applies to that estate, determine whether it will be performed by you or by a member ofyour staff and so indicate in the appropriate blank by entering the initials of the person to performthe task. When you follow this procedure, the Checkplan becomes a planning tool. As an activityhas been considered and the proper action has been taken, the person taking that action should initialthe proper blank and indicate the date that the action was taken. This Checkplan should bemaintained in the client’s file (or notebook). When the administration is concluded, the Checkplanshould be preserved in the client’s file as a record of the activities considered, the actions taken, thedates they were taken, and the identities of the persons who performed the services.

Every office needs at least one complete Texas Probate System for use in all estates, andeach estate needs a Checkplan, a Significant Date List, a Master Information List (MIL), and aProbate Information List (Form 1). These items are included in the System and also are contained,as PDF files, on the CD-ROM that accompanies the printed System. The CD-ROM also includesthe Texas Lawyer’s Creed. You may print out these items from the CD-ROM for each estate youhandle, or you may print them out once from the CD-ROM and keep those copies as a photocopymaster. The CD-ROM also contains a PDF file of Special Instruction 80 (the checkplan for handlingthe federal estate tax, which will be needed in some estates) and of the Probate Chart. The forms andletters in the System are contained as Word files and WordPerfect files on the CD-ROM, as well.The material behind the tab entitled “Disk Documentation” explains how to use all these files.

Additional copies of this System may be ordered from the State Bar of Texas, Post OfficeBox 12487, Capitol Station, Austin, Texas 78711.

How to Begin

To access these materials through the use of the systems approach, begin with the Checkplan.

Our MIL, numbering system, checkplan, forms, and letters are precisely and delicatelycoordinated, but none of the content is sacred or to be regarded as Holy Writ. You should feel freeto write your own letters and forms or to change ours to adapt to your own practice. If you do so,you must be careful not to destroy the numbering of your blanks, and you must remember tocoordinate your blanks with the MIL. If you come up with suggestions for improvements for ourSystem or for additions to it, please let us hear from you.

James E. Brill


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SPECIAL INSTRUCTIONS

ACCOUNTS

55 Annual Account56 Final Account

ADMINISTRATOR

5 Qualification of and Priority Rights To BeAppointed an Administrator or an Executor

ANNUITIES

62 Annuities

ASSETS

7 Insurance on D's Life10 Social Security Benefits11 Railroad Retirement Benefits12 Veterans (VA) Benefits13 Employee Benefit Plans14 Individual Retirement Arrangements (IRA)20 Cash Items26 Real Estate28 Stocks, Bonds, and Other Securities30 Insurance Owned by D on Life of Another31 Notes and Accounts Receivable32 Motor Vehicles33 U. S. Government Savings Bonds34 Personal Property35 Valuing and Describing Other Assets41 Jointly Owned Property62 Annuities70 Subchapter S Corporations

ATTORNEY'S FEES

2 Ethics and Attorney's Fees

BANK ACCOUNTS

20 Cash Items

BIRTH RECORDS

8 Death, Birth, Marriage, and Divorce Re-cords

BOND

46 Bond

BUSINESSES

75 Family Owned Businesses

CASH

20 Cash Items

CITATION

16 Citation and Hearing Date

CLIENT

1 Probate Information List2 Ethics and Attorney's Fees6 Handling Funds Received from Client

CLAIMS

54 Claims of Creditors72 Spousal Liability

COURT PROCEEDINGS


15 Jurisdiction and Venue16 Citation and Hearing Date17 Testate and Intestate Dependent Adminis-

tration18 What To Do at Hearing


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23 Inventory, Appraisement, and List ofClaims

29 Procedures in Lieu of Administration45 When To Terminate the Administration of

an Estate46 Bond47 Sale of Real Property During Administra-

tion48 Sale of Personal Property During Adminis-

tration50 Sale of Personal Property Likely To Per-

ish, Waste, Etc.51 Family Allowance52 Exempt Property, Setting Aside Exempt

Property, and Allowance in Lieu ofExempt Property

53 Mineral Leases54 Claims of Creditors55 Annual Account56 Final Account57 Temporary Dependent Administration

(TDA)59 Determining the Identity of D's Heirs60 Proceedings To Determine Heirship (PDH)63 Small Estates (SE)65 Administration with Dependent Executor

(ADE)67 Administration with Will Annexed (AWA)68 Independent Administration (IA)69 Regular Dependent Administration (RDA)73 Muniment of Title (MT)

CREDITORS

54 Claims of Creditors72 Spousal Liability

DEATH RECORDS


DISCLAIMERS

25 Disclaimers

DIVORCE RECORDS


ECONOMIC CONTRIBUTION ANDREIMBURSEMENT

76 Economic Contribution

EMPLOYEE BENEFITS AND RETIREMENTPLANS

13 Employee Benefit Plans14 Individual Retirement Arrangements (IRA)

ESTATE TAX MATTERS

See Tax, Estate

ETHICS


EXECUTOR


EXEMPT PROPERTY

52 Exempt Property, Setting Aside ExemptProperty, and Allowance in Lieu ofExempt Property

FAMILY ALLOWANCE

51 Family Allowance

FAMILY BUSINESSES

75 Family Owned Businesses


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FISCAL YEARS

19 Fiscal Years

FUNDS FROM CLIENT

6 Handling Funds Received from Client

GOVERNMENT BENEFITS

10 Social Security Benefits11 Railroad Retirement Benefits12 Veterans (VA) Benefits

INCOME TAX MATTERS

See Tax, Income

INDEPENDENT ADMINISTRATION

68 Independent Administration (IA)

I N D I V I D U A L R E T I R E M E N TARRANGEMENTS

14 Individual Retirement Arrangements (IRA)

INITIAL INTERVIEW


INSURANCE

7 Insurance on D's Life30 Insurance Owned by D on Life of Another

INTESTATE SUCCESSION

58 Who Inherits When There Is No Will

INVENTORY


JOINTLY OWNED PROPERTY

41 Jointly Owned Property

JURISDICTION

15 Jurisdiction and Venue

LAWYERS

78 Death Of A Lawyer

LEASES, MINERAL

53 Mineral Leases

MARITAL DEDUCTION

42 The Marital Deduction

MARITAL PROPERTY RIGHTS

49 Marital Property Rights72 Spousal Liability77 Economic Contribution

MARRIAGE RECORDS


MINERAL LEASES

53 Mineral Leases

MUNIMENT OF TITLE

73 Muniment of Title (MT)


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23

NOTES AND ACCOUNTS

31 Notes and Accounts Receivable

OTHER ASSETS

35 Valuing and Describing Other Assets

PERSONAL PROPERTY

34 Personal Property48 Sale of Personal Property During Adminis-

tration50 Sale of Personal Property Likely To Per-

ish, Waste, Etc.

POWERS OF APPOINTMENT

61 Powers of Appointment

PROBATE INFORMATION LIST

1 Probate Information List

PROCEDURES IN LIEU OF ADMINISTRA-TION

29 Procedures in Lieu of Administration

PROPERTY RIGHTS

49 Marital Property Rights 58 Who Inherits When There Is No Will

PUBLICATIONS

21 Helpful Publications Relating to FederalTax Matters

QUALIFICATION


RAILROAD RETIREMENT

11 Railroad Retirement Benefits

REAL ESTATE

26 Real Estate27 Special Use Valuation For Certain Real

Estate47 Sale of Real Property During Administra-

tion

RECORDS OF BIRTH, DEATH, DIVORCE


SAFE DEPOSIT BOX

4 Safe Deposit Boxes

SECURITIES

28 Stocks, Bonds, and Other Securities33 U.S. Government Savings Bonds

SMALL ESTATES

63 Small Estates (SE)

SUBCHAPTER S CORPORATION

70 Subchapter S Corporations

TAX, ESTATE

9 Surviving Spouse's Federal Income TaxElections

21 Helpful Publications Relating to FederalTax Matters

22 Federal Tax Elections and Deductions25 Disclaimers27 Special Use Valuation For Certain Real

Estate


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36 How To Assemble Federal Estate Tax Re-turn

37 Common Problems and Mistakes in Pre-paring Estate Tax Return

38 Elections To Pay Estate Tax in Install-ments - Closely Held Business

39 Request for Extension of Time To Pay Es-tate Taxes

40 Section 303 Redemption42 The Marital Deduction43 Credit for Tax on Prior Transfers64 Taxable Transfers66 Election To Pay Estate Tax in Installments

- Reversionary and Remainder Interests71 Apportionment of Taxes75 Family Owned Businesses80 Federal Estate Tax and accompanying

Checkplan

TAX, INCOME

3 Income Tax Returns Can Lead You to As-sets and Liabilities

9 Surviving Spouse's Federal Income TaxElections

19 Fiscal Years21 Helpful Publications Relating to Federal

Tax Matters22 Federal Tax Elections and Deductions74 Income Taxation of the Estate

TAX, INHERITANCE

44 Texas Inheritance Tax

U. S. GOVERNMENT SAVINGS BONDS

33 U. S. Government Savings Bonds

VALUATION

24 General Rules for Valuation of Assets27 Special Use Valuation35 Valuing and Describing Other Assets

VEHICLES

32 Motor Vehicles

VENUE

15 Jurisdiction and Venue

VETERANS BENEFITS

12 Veterans (VA) Benefits


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TEXAS PROBATE SYSTEMMASTER INFORMATION LIST (MIL)

CLIENT ESTATE OF DATE OF DEATH COURT DOCKET NUMBER COURT OF COUNTY

TYPE OF PROCEEDINGS:

TestateINDEPENDENT ADMINISTRATIONMUNIMENT OF TITLEADMINISTRATION WITH WILL ANNEXEDADMINISTRATION WITH DEPENDENTEXECUTOR

IntestateSMALL ESTATEPROCEEDINGS TO DECLARE HEIRSHIPTEMPORARY DEPENDENTADMINISTRATIONREGULAR DEPENDENT ADMINISTRATION

PERSONS TO RECEIVE COPIES OFDOCUMENTS:(1) Name

Address City, state, zip E-mail Phone no. Fax no.

(2) Name Address City, state, zip E-mail Phone no. Fax no.



Check box when section is completed. Cross throughthose that do not apply.

Decedent (D) . . . . . . . . . . . . . . . . . . . . . . . . . 1.0

D’s Will, Estate, and Personal Representatives . . . . . . . . . . . . . . . . . . . . . . . 2.0

D’s Family and Devisees . . . . . . . . . . . . . . . . 3.0

Safe Deposit Box . . . . . . . . . . . . . . . . . . . . . . 4.0

D’s Professional Advisors . . . . . . . . . . . . . . 5.0

Court Proceedings . . . . . . . . . . . . . . . . . . . . 6.0

Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.0

U.S. Government Savings Bonds . . . . . . . . . 8.0

Marketable Securities . . . . . . . . . . . . . . . . . . 9.0

Closely Held Corporations . . . . . . . . . . . . . . 10.0

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.0

Judgments, Notes, Accounts Receivable, andSales under Contract for Deed . . . . . . . . . . 12.0

Insurance on D’s Life . . . . . . . . . . . . . . . . . . 13.0

Insurance on Life of Others . . . . . . . . . . . . . 14.0

Other Insurance . . . . . . . . . . . . . . . . . . . . . . 15.0

Unincorporated Business Interests . . . . . . . 16.0

Transportation Equipment . . . . . . . . . . . . . 17.0

Personal, Household, and Miscellaneous Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.0

Employee and Government Benefits andAnnuities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.0

Taxable but Unusual Items . . . . . . . . . . . . . 20.0

Debts and Claims . . . . . . . . . . . . . . . . . . . . . 21.0

Funeral Expenses . . . . . . . . . . . . . . . . . . . . . 22.0

Expenses of Last Illness . . . . . . . . . . . . . . . . 23.0

Previously Taxed Property . . . . . . . . . . . . . 24.0

Expenses of Administration . . . . . . . . . . . . . 25.0

Taxes for D and for D’s Estate . . . . . . . . . . 26.0

This Master Information List (MIL) has spaces to recordall information necessary to prepare all documents to befiled in court, various tax forms including the Texasinheritance tax return, and a simple federal estate taxreturn; to transfer assets to ultimate beneficiaries; and toprepare related correspondence.


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INDEX TO FORMS

ACCOUNT

62 Annual account of Executor or Administra-tor

63 Verification of funds on deposit64 Confirmation of safekeeping65 Account for final settlement66 Order approving account for final settle-

ment and authorizing distribution of estate92 Final account of temporary administrator93 Order approving final account of tempo-

rary administrator94 Application to close temporary administra-

tion95 Order closing temporary administration

ADMINISTRATION WITH DEPENDENTEXECUTOR

8 Proof by subscribing witness9 Interrogatories to subscribing witness

10 Answers to interrogatories14 Proof of decedent's handwriting and signa-

ture18 Oath of individual (IA, ADE, or AWA)20 Newspaper notice to creditors22 Inventory, Appraisement, and List of

Claims28 Application to probate will (ADE)29 Proof of death and other facts (ADE)33 Order admitting will to probate (ADE)34 Bond of Executor or Administrator with

two personal sureties35 Bond of Executor or Administrator with

corporate surety96 Waiver and renunciation of right to letters

testamentary

ADMINISTRATION WITH WILL ANNEXED

8 Proof by subscribing witness9 Interrogatories to subscribing witness


ture18 Oath of individual (IA, ADE, or AWA)20 Newspaper notice to creditors


34 Bond of Executor or Administrator withtwo personal sureties

35 Bond of Executor or Administrator withcorporate surety

69 Application for probate of will (AWA)70 Waiver and renunciation of right to letters

(AWA)71 Proof of death and other facts (AWA)72 Order admitting will to probate (AWA)

AFFIDAVIT

26 Affidavit as to D's domicile37 Affidavit of Executor, Administrator, or

client regarding debts and taxes38 Affidavit of attorney regarding debts and

taxes

ATTORNEY AD LITEM

78 Motion to appoint attorney ad litem79 Answer of attorney ad litem

ATTORNEY'S FEES

61 Application to pay attorney's fees

AUTHORIZATION

2 Authorize third parties to furnish informa-tion

BOND

34 Bond of Executor or Administrator withtwo personal sureties

35 Bond of Executor or Administrator withcorporate surety

BOND POWERS

25 Irrevocable bond power


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CLOSE ESTATE

67 Application to close estate and to dischargepersonal representative

68 Order closing estate and discharging per-sonal representative

CREDITORS

20 Newspaper notice to creditors21 Proof of mailing notice to lien creditors58 Authenticated unsecured claim

CREED, TEXAS LAWYER’S

99 Texas Lawyer’s CreedDEALING WITH CLIENT

1 Probate Information List2 Authorize third parties to furnish informa-

tion3 Receipt for documents

DEATH TAXES

37 Affidavit of Executor, Administrator, orclient regarding debts and taxes

38 Affidavit of attorney regarding debts andtaxes

DISCLAIMER

23 Disclaim full interest in estate

DOMICILE

26 Affidavit as to D's domicile

EXEMPT PROPERTY

54 Application to set aside exempt property55 Application for allowances in lieu of ex-

empt property

EXPENDITURE OF FUNDS

59 Application to expend funds

FAMILY ALLOWANCE

53 Application for family allowance

FUNDS

59 Application to expend funds63 Verification of funds on deposit

H E I R S H I P , P R O C E E D I N G S T ODETERMINE

77 Application to determine heirship78 Motion to appoint attorney ad litem79 Answer of attorney ad litem80 Statement of facts (PDH and RDA)81 Judgment declaring heirship

INDEPENDENT ADMINISTRATION

5 Application for probate of will (IA)7 Proof of death and other facts (IA)8 Proof by subscribing witness9 Interrogatories to subscribing witness


ture17 Order admitting will to probate (IA)18 Oath of individual (IA, ADE, or AWA)20 Newspaper notice to creditors22 Inventory, Appraisement, and List of

Claims

INTERROGATORIES

9 Interrogatories to subscribing witness10 Answers to interrogatories

INVENTORY


27 Extension of time for filing inventory36 Supplemental inventory


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LAWYER’S CREED

99 Texas Lawyer’s Creed

LEASES, MINERAL

56 Application to enter into mineral lease atprivate sale

57 Order authorizing mineral lease at privatesale

MINERAL LEASES (see Leases, Mineral)

MUNIMENT OF TITLE

6 Application to probate will (MT)8 Proof by subscribing witness9 Interrogatories to subscribing witness


ture22 Inventory, Appraisement, and List of

Claims31 Proof of death and other facts (MT)32 Order admitting will to probate (MT)97 Affidavit regarding fulfillment of will ad-

mitted to probate as a muniment of title

NEWSPAPER

20 Newspaper notice to creditors

OATH

18 Oath of individual (IA or AWA)19 Oath of corporate Executor (IA or ADE)

PERSONAL PROPERTY

47 Application for court approved sale ofpersonal property

48 Order permitting sale of personal property49 Report of sale of personal property50 Decree confirming sale of personal prop-

erty

51 Application for court approved dispositionof personal effects

52 Application for sale of personal propertywhich is likely to perish or waste or deteri-orate in value

98 Order setting hearing on application forsale of personal property

POWERS

24 Irrevocable stock power25 Irrevocable bond power

PROBATE INFORMATION LIST

1 Probate Information List

P R O C E E D I N G S T O D E T E R M I N EHEIRSHIP (see Heirship, Proceedings To Deter-mine)

PROOF OF WILL - WITNESS NOT INCOURT

9 Interrogatories to subscribing witness10 Answers to interrogatories11 Motion to withdraw purported will 12 Receipt for purported will 13 Notice for commission for interrogatories

PUBLICATION

20 Newspaper notice to creditors

REAL ESTATE

39 Application for court approved sale of realproperty

40 Verified exhibit to be attached to applica-tion for court approved sale of real prop-erty

41 Order setting hearing on application forsale of real property

42 Order permitting sale of real property43 Report to court of sale of real property44 Decree confirming sale of real property


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45 Deed for sale of real property followingcourt approval of sale

46 Application and order to set aside decreeconfirming sale of real property

RECEIPT

3 Receipt for documents12 Receipt for purported will30 Receipt and release

R E G U L A R D E P E N D E N TADMINISTRATION

73 Application for Letters of Administrationwhere there is no will (RDA)

74 Waiver and renunciation of right to Lettersof Administration (RDA or TDA)

75 Proof of death and other facts (RDA)76 Order granting Letters of Administration

(RDA)77 Application to determine heirship78 Motion to appoint attorney ad litem79 Answer of attorney ad litem80 Statement of facts (PDH and RDA)81 Judgment declaring heirship86 Oath of administrator (RDA)

REIMBURSEMENT

60 Application to reimburse Executor or Ad-ministrator

RESIDENT AGENT

15 Appointment of resident agent - individualExecutor

16 Appointment of resident agent - corporateExecutor

SAFE DEPOSIT BOX

4 Request court authority to enter a safe de-posit box

SAFEKEEPING

64 Confirmation of safekeeping

SECURITIES

24 Irrevocable stock power25 Irrevocable bond power

SETTLEMENT

63 Verification of funds on deposit64 Confirmation of safekeeping65 Account for final settlement66 Order approving account for final settle-

ment and authorizing distribution of estate

SMALL ESTATE

82 Small estate affidavit and order

STOCK POWERS

24 Irrevocable stock power

T E M P O R A R Y D E P E N D E N TADMINISTRATION

83 Application for temporary administration84 Proof of death and other facts (TDA)85 Order appointing temporary administrator87 Oath of temporary administrator88 Letters of Temporary Administration when

not prepared by clerk89 Application for enlargement of powers of

temporary administrator90 Order granting additional powers to tem-

porary administrator91 Order making temporary administration

permanent92 Final account of temporary administrator

WAIVER OF RIGHT TO BE APPOINTED

70 Waiver and renunciation of right to letters(AWA)

74 Waiver and renunciation of right to Lettersof Administration (RDA or TDA)


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96 Waiver and renunciation of right to LettersTestamentary


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INDEX TO LETTERSBy Addressee

ADMINISTRATOR

19 Forward copy of application and advise ofhearing (IA) (ADE) (AWA) (PDH) (RDA)

20 Forward oath to be signed before a notary24 Forward document for signature35 Forward copy of disclaimer42 Forward documents required for transfer of

securities48 Forward document for signature before a

notary59 Confirm representation and fee and outline

anticipated services (ADE) (AWA)70 Forward bond for signature (RDA)73 Advise of nature and extent of duties of of-

fice (ADE) (AWA)83 Confirm representation and fee and outline

anticipated services (RDA)93 Forward copy of account for final settlement94 Advise of nature and extent of duties of of-

fice (RDA)100 Advise not to pay claim

APPLICANT


65 Forward copy of application and advise ofhearing (MT)

APPRAISER

49 Forward inventory for signature

ATTORNEY AD LITEM

57 Forward documents and advise of time anddate of hearing

B A N K O R O T H E R C O R P O R A T EFIDUCIARY

28 Inquire about account of married D29 Inquire about account of unmarried D30 Determine if an account or safe deposit box

exists

76 Verify balance in account for annual/finalaccounting

77 Confirm safekeeping of funds, securities,and other items

BENEFICIARY, HEIR, OR TRANSFEREE

8 Forward life insurance proceeds34 Forward disclaimer for signature42 Forward documents required for transfer of

securities44 Forward new certificates for securities48 Forward document for signature before a

notary90 Advise of income tax basis93 Forward copy of account for final settlement

101 Advise beneficiary of representation of exec-utor or administrator

CENTRAL APPRAISAL DISTRICT

37 Change address

CHARITY

67 Forward copy of will, application and orderand to advise named in will

CLIENT

1 Forward copy of Probate Information List3 Confirm representation and fee and outline

anticipated services (IA)24 Forward document for signature48 Forward document for signature before a


anticipated services (ADE) (AWA)63 Return all items64 Confirm representation and fee and outline

anticipated services (MT)66 Explain muniment of title procedure and ac-

tions to follow74 Confirm representation and fee and outline

anticipated services (TDA)


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83 Confirm representation and fee and outlineanticipated services (RDA)

85 Confirm representation and fee and outlineanticipated services (PDH)

87 Confirm representation and fee and outlineanticipated services (SE)

93 Forward copy of account for final settlement

COMPTROLLER OF PUBLIC ACCOUNTS

54 Forward copy of IRS closing letter56 Forward Texas inheritance tax return81 Forward copy of approved extension of time

to file return and/or pay estate tax82 Forward notice to creditors96 Application for extension of time to file re-

turn and/or pay inheritance tax

CORPORATE FIDUCIARY


exists76 Verify balance in account for annual/final

accounting77 Confirm safekeeping of funds, securities,

and other items

COUNTY CLERK

61 Record proceedings in deed records ofcounty other than county of probate

CREDIT UNION

28 Inquire about account of married D29 Inquire about account of unmarried D76 Verify balance in account for annual/final


and other items

CREDITOR

33 Notice to secured creditors75 Forward claim form99 Permissive notice to file claim

C U S T O D I A N O F D I V I D E N DREINVESTMENT PROGRAM

58 Determine number of unissued shares andrequirements for transfer

DEBTOR

46 Notify of place to make future payments

DEPARTMENT OF HEALTH

6 Order death certificates

DEPOSITORY

77 Confirm safekeeping of funds, securities,and other items

EMPLOYER

12 Request information as to death benefits

EXECUTOR

18 Forward appointment of registered agent tononresident Executor


20 Forward oath to be signed before a notary23 Advise of nature and extent of duties of of-

fice (IA)24 Forward document for signature35 Forward copy of disclaimer42 Forward documents required for transfer of



anticipated services (ADE) (AWA)70 Forward bond for signature (ADE)73 Advise of nature and extent of duties of of-

fice (ADE) (AWA)93 Forward copy of account for final settlement

100 Advise not to pay claim


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GOVERNMENTAL AGENCY

67 Forward copy of will, application and orderand to advise named in will

HEIR

34 Forward disclaimer for signature42 Forward documents required for transfer of


notary90 Advise of income tax basis93 Forward copy of account for final settlement

INSURANCE COMPANY

4 Request IRS Form 712 for policy alreadysent for collection

5 Request claim forms7 Collect benefits9 Request information when seeking to ex-

clude insurance policy from D's gross estate45 Request IRS Form 712 for policy on life of

another

INTERNAL REVENUE SERVICE

25 Request employer identification number 26 Notify of fiduciary relationship 31 Change of address41 Fiduciary estimated tax payment50 File estate tax return51 File application for extension of time to file

estate tax return and/or pay estate tax52 Request prompt assessment of estate taxes53 Forward additional estate taxes55 Request unconditional release of federal es-

tate tax lien and/or release of personal liabil-ity

62 Notice of termination of fiduciary relation-ship

80 Forward fiduciary income tax return95 Request copy of tax returns

MERCHANT

27 Cancel credit card or charge account

NEWSPAPER

32 Forward notice to creditors84 Forward citation

PROBATE CLERK

2 Order Letters Testamentary or Letters ofAdministration

21 Forward document to be filed47 Forward document to be signed by the judge60 Order certified copies (IA) (ADE) (AWA)69 Order certified copies (MT)86 Order certified copies (PDH)89 Order certified copies (SE)91 Order certified copies (RDA)

SAVINGS ASSOCIATION


exists76 Verify balance in account for annual/final


and other items

SOCIAL SECURITY ADMINISTRATION

10 Return check

STOCKBROKER

38 Terminate brokerage accounts39 Obtain valuation of securities


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SURETY

71 Forward bond to individual surety72 Forward bond to corporate surety78 Forward copy of annual account or account

for final settlement79 Advise of discharge from bond

TAX ASSESSOR

37 Change address

TENANT

36 Notify of place and method of making pay-ment

TRANSFER AGENT

40 Change address for payment of dividends orinterest

43 Forward securities for transfer (IA) (ADE)(AWA) (RDA) (PDH)

68 Forward securities for transfer (MT)88 Forward securities for transfer (SE)

VETERANS ADMINISTRATION

11 Return check

WITNESS

13 Forward copy of testimony and advise ofhearing

14 Forward copy of D's Will to subscribing wit-ness who will testify in court

15 Forward copy of D's Will and interrogatoriesto subscribing witness who will not testify incourt (initial letter)

16 Forward interrogatories to subscribing wit-ness who will not testify in court (follow-upletter)

17 Forward copy of D's Will to subscribing wit-ness who will testify as to D's handwritingand signature

22 Thank for appearing in court

92 Forward small estate affidavit for signaturebefore a notary


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FURNISHED FORMS (FF)

No. Description1 IRS Form 4506, Request for Copy or Transcript of Tax Form

2 IRS Form 712, Life Insurance Statement

3 Deposition Envelope (Sample)

4 Deposition Envelope (Instruction Sample)

5 Reserved

6 IRS Form SS-4, Application for Employer Identification Number

7 IRS Form 56, Notice Concerning Fiduciary Relationship

8 IRS Form SWR AUD-554, Computation of Income Tax Deduction on Estate Tax Returns

9 IRS Form 8821, Tax Information Authorization

10 IRS Form 2848, Power of Attorney and Declaration of Representative

11 IRS Form 4768, Application for Extension of Time to File a Return and/or Pay U.S. Estate (andGeneration-Skipping Transfer) Taxes

12 Comptroller Form 17-106, Inheritance Tax Return - Federal Estate Tax Credit

13 IRS Form 8822, Change of Address

14 Reserved

15 IRS Form W-9, Request for Taxpayer Identification Number and Certification

16 Reserved

17 Reserved

18 Reserved

19 Reserved

20 IRS Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return


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WORKSHEETS

No. Description

1 Proper probate procedure

2 Insurance on D’s life

3 Checking and savings accounts and certificates of deposit

4 Reconcile D’s checking account to balance furnished by bank

5 Securities transfer record

6 Requirements for filing Federal Estate (and Generation-Skipping Transfer) Tax Return (IRSForm 706)

7 Valuing producing mineral and royalty interests

8 Eligibility for special use valuation under IRC, Section 2032A

9 Schedule Q - credit for tax on prior transfers

10 Cash requirements and cash available

11 Eligibility for stock redemption under IRC, Section 303

12 Eligibility for estate tax deferral under IRC, Section 6166

13 Claims against estate

14 Marital deduction under transitional rule

15 Economic contribution


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CHECKPLANTABLE OF CONTENTS

PageInitial Contact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Initial Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Determining Proper Probate Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11After Initial Interview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Safe Deposit Box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16Insurance on D’s Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Employee and Government Benefits, Annuities, and IRA’s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Temporary Dependent Administration (TDA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Independent Administration (IA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Muniment of Title (MT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Proceedings To Declare Heirship (PDH) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42Small Estate (SE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Administration with Dependent Executor (ADE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Administration with Will Annexed (AWA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Regular Dependent Administration (RDA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Alternate Method of Proving D’s Will . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Notices to Creditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Estate Bank Account and Accounting System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69Residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72Other Leased Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74Credit Cards and Charge Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75Claims against D’s Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Other Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83Subchapter S Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85D’s Lifetime Tax Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Income Tax Returns for Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93Valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95Disclaimers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103Insurance on Life of Another . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112Judgments, Notes, Accounts Receivable, and Contracts for Deed . . . . . . . . . . . . . . . . . . . . . . . . . 113Transportation Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114Disposition or Transfer of Personal Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115Other Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123Family Allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125Setting Aside Exempt Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126Federal Estate Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128Texas Inheritance Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129Texas Real Estate Not in County of Probate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132Court Authorization To Spend Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134Annual Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138Determining Heirship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140Final Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143Distributing the Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145Closing the Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146Winding Up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147


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PRO

BA

TE

CH

AR

T F

OR

AL

L A

CT

IVE

EST

AT

ES

RE

PRE

SEN

TE

D B

Y T

HIS

FIR

M

Nam

e of

Dec

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tD

ocke

t Num

ber

& C

ourt

Typ

e

(1)

L/S (2)

DO

D

(3)

Hea

ring

(4)

Qua

l.

(5)

Inv.

(6)

AV

D

(7)

Dis

clai

m

(8)

Inh.

Tax (9)

Est

.T

ax (9)

D's

Tax

(10)

FYE

(11)

Fid.

Tax

(12)

Pend

ing

Item

s

(1)

IA =

Inde

pend

ent A

dmin

istra

tion;

MT

= M

unim

ent o

f Titl

e; A

DE

= A

dmin

istra

tion

with

Dep

ende

nt E

xecu

tor;

AW

A =

Adm

inis

tratio

n w

ith W

ill A

nnex

ed; P

DH

= P

roce

edin

g To

Det

erm

ine

Hei

rshi

p; S

E =

Smal

l Est

ate;

TD

A =

Tem

pora

ry D

epen

dent

Adm

inis

tratio

n(2

)In

itial

s of r

espo

nsib

le la

wye

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f mem

bers

(3)

DO

D =

Dat

e of

dea

th(4

)H

earin

g =

Dat

e of

hea

ring,

or i

f no

hear

ing,

dat

e ju

dge

sign

s ord

er(5

)Q

ual.

= Q

ualif

icat

ion

date

for e

xecu

tor o

r adm

inis

trato

r(6

)In

v. =

Due

dat

e fo

r inv

ento

ry

(7)

AV

D =

Alte

rnat

e va

luat

ion

date

—6

mon

ths a

fter d

eath

(8)

Dis

clai

m =

Dis

clai

mer

—9

mon

ths a

fter d

eath

(9)

Inh.

Tax

= In

herit

ance

tax

retu

rn; E

st. T

ax =

Fed

eral

est

ate

tax

retu

rn—

9 m

onth

s af

ter

deat

h or

as e

xten

ded

(10)

D's

Tax

= D

's in

com

e ta

x re

turn

—A

pril

15th

of a

pplic

able

yea

r(s)

or a

s ext

ende

d(1

1)FY

E =

Fisc

al y

ear e

nd o

f est

ate

(12)

Fid.

Tax

= F

iduc

iary

inco

me t

ax re

turn

—15

th d

ay o

f 4th

mon

th fo

llow

ing

fisca

l yea

r end

(Apr

il 15

if fi

scal

yea

r is c

alen

dar y

ear)

or a

s ext

ende

d

Eff

icie

nt A

dmin

istr

atio

n of

An

Est

ate:

An

Intr

oduc

tion

To

The

Tex

as P

roba

te S

yste

m

38

Cha

pter

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EFFICIENT ADMINISTRATION OF AN ESTATE AN INTRODUCTION TO THE TEXAS PROBATE SYSTEM · 2013-10-17 ·...

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Transcript of EFFICIENT ADMINISTRATION OF AN ESTATE AN INTRODUCTION TO THE TEXAS PROBATE SYSTEM · 2013-10-17 ·...