Record Keeping
Once the personal representative has been appointed, an estate bank account should be set up. In order to do so, it is necessary to obtain a new tax identification number for the estate from the Internal Revenue Service. This number essentially replaces the decedent’s social security number since, upon the death of the decedent, the estate becomes a distinct taxpayer.
It is important for the personal representative to keep complete records of the sources of all deposits and expenditures. Decisions should be made about when to pay bills and which bills to pay. By law, some categories of bills must be paid before other categories. If there is a possibility that the estate will be insolvent, this becomes an even greater area of concern. It is crucial that accurate records are kept from the beginning of the estate so that the necessary information will be available for the preparation of the final accounting of the probate and various tax returns.
The personal representative also has the responsibility of preserving and protecting the estate assets. For example, insurance on real estate and vehicles must be maintained. Mortgage and utility payments need to be made. Charge cards, memberships, and magazine subscriptions need to be canceled and refunds obtained where appropriate.
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