Q: What is the purpose of the probate procedure?

A: The probate procedure is the court procedure by which a will is proved to be valid or invalid. Creditors of the estate have the opportunity to file claims against the estate and receive payment of those claims. After the administration fees and creditor claims are paid, the assets of the estate are distributed.

Q: What are methods for preserving assets of the probate estate?

A: There are many ways to preserve probate estate assets. In association with an attorney and tax advisor, you can:

• Determine whether administration expenses and casualty losses should be reported on the estate tax return or on the estate's income tax return.
  
  
• Consider whether there are income tax savings opportunities on the decedent's final return (such as whether or not a joint return should be filed with the surviving spouse).
  
  
• Consider whether assets should be valued at the date of the decedent's death or six months later (or, if the assets have been distributed prior to six months after the decedent's death, the date of the disposition of the assets).