The Client Letters section of the Post-Appointment Package allows you to generate guidance letters for the Personal Representative (PR). These letters help the PR understand their responsibilities and provide practical instructions for handling the early stages of estate administration.
Some letters provide general guidance about probate administration, while others address specific issues, such as taxes, creditor notice decisions, asset valuation, and closing the decedent’s accounts.
You may select any combination of letters depending on the circumstances of the estate and the level of guidance needed by the PR.
Letter to Client Discussing an Overview of Estate Administration
This letter provides the Personal Representative with a comprehensive overview of the probate administration process and the PR’s responsibilities. Topics covered include:
Introduction to the PR’s Role
Explains the PR’s fiduciary responsibilities and the duty to administer the estate in accordance with Washington law.
Initial Steps After Probate Opens
Describes what happens once probate is opened, including giving required notices and establishing estate accounts.
Asset Inventory and Management
Explains the PR’s obligation to identify and inventory estate assets and to properly safeguard and manage them.
Creditor Issues
Discusses the process for identifying estate debts and satisfying valid creditor claims.
Tax Responsibilities
Provides a general overview of the tax returns that may be required, including:
Final individual income tax return
Estate fiduciary income tax returns
Federal or Washington estate tax returns (if applicable)
It also explains that the PR may be personally liable for unpaid taxes if estate funds are distributed before tax obligations are satisfied.
Communication with Beneficiaries
Encourages maintaining clear communication with heirs and beneficiaries and highlights issues such as disclaimers and non-probate assets.
Estimated Administration Timeline
Provides an overview of typical timeframes for estate administration, depending on factors such as creditor claims and tax filings.
The letter reassures the PR that the firm will provide additional guidance throughout the administration process.
Letter to Client Discussing Initial Tasks After Probate Opened
This letter informs the PR that probate has officially been opened and provides guidance on the first practical steps required to take control of the estate.
The letter typically encloses:
Certified copies of Letters Testamentary or Letters of Administration
Copies of filed pleadings opening probate
Copies of Notices of Appointment and Pendency of Probate sent to probate parties
Notice of appointment to state agencies (DSHS and DOR)
Formal notice of appointment to the PR if the PR is also a party entitled to notice
The letter also summarizes initial tasks for administering the estate. These tasks are included through selectable options and may vary depending on the decedent’s circumstances. Possible topics include:
Opening Estate Accounts
Directions to establish estate bank or brokerage accounts using the estate’s EIN. The letter includes an example of how the estate account should be titled and assumes that an EIN has already been obtained for the estate.
Notifying Credit Reporting Agencies
Instructions to notify the three major credit reporting agencies of the decedent’s death. The letter references an enclosed client letter that the PR can send to the agencies requesting a copy of the decedent’s credit report and placing a death notice or credit freeze on the decedent’s credit file. (This credit agency notification letter is included in the Post-Appointment section of Agile EP’s probate forms.)
Social Security Notification
Guidance on confirming the decedent’s death with the Social Security Administration. If the decedent was over age 62 at death, the letter reminds the PR to confirm that any Social Security payments have stopped. If the decedent was married or had minor children, the letter also notes the possibility of survivor benefits.
Retirement Account Required Minimum Distributions
A reminder to review retirement accounts for required minimum distributions (RMDs). This section is typically relevant if the decedent was age 72 or older at death. For traditional IRAs, SEP IRAs, SIMPLE IRAs, and qualified plans such as 401(k)s, the letter explains that the first RMD must generally be taken by the Required Beginning Date, which is April 1 of the year after the account owner reaches age 73 (age 72 if the owner reached 72 before 2023).
Bookkeeping
A recommendation that the PR establish a reliable bookkeeping system to track estate receipts, expenses, and distributions. Maintaining organized records will help support the estate accounting and simplify reporting to beneficiaries and tax professionals.
Securing Real Estate
Instructions to secure and properly insure any real property owned by the decedent. The letter also highlights additional precautions if property will be vacant, such as confirming appropriate insurance coverage and monitoring the property.
Securing Personal Property
Guidance on safeguarding valuable or potentially dangerous personal property, including items such as firearms, jewelry, collectibles, or vehicles. The PR is encouraged to inventory and protect these assets early in the administration process.
PR Compensation and Reimbursement
An explanation that the PR may be entitled to reasonable compensation for their services and reimbursement for personal expenses incurred on behalf of the estate. The letter emphasizes the importance of maintaining contemporaneous records of time spent and expenses in case compensation is later requested or approved.
Letter to Client Discussing Alternate Valuation
This letter introduces the concept of the alternate valuation date for federal estate tax purposes.
The letter explains:
What the alternate valuation date is
When it may be used
How it affects estate asset values and tax calculations
It helps the PR understand that valuation decisions may affect estate tax reporting and that tax professionals may assist with this analysis.
Letter to Client Discussing Tax Issues
This letter provides the PR (and any acting Trustee) with an overview of tax responsibilities during estate and trust administration. Topics covered include:
Responsibility and Liability
Explains that the PR must ensure all required tax returns are filed correctly and on time.
Role of Tax Professionals
Encourages working with accountants experienced in estate and fiduciary tax returns.
Individual Income Tax Returns (Form 1040)
Explains that the decedent’s final income tax return must be filed and addresses joint return issues for married decedents.
Estate or Trust Income Tax Returns (Form 1041)
Explains when fiduciary income tax returns must be filed and how estates and trusts may be treated as separate taxpayers.
Estate Tax Returns
Discusses when federal and Washington estate tax returns may be required and outlines filing deadlines.
Gift Tax Issues
Addresses prior lifetime gifts that may affect federal estate tax reporting.
Letter to Client Discussing Creditor Issues When No Notice is Given
This letter explains how creditor claims work when the estate has not published a Notice to Creditors.
The letter discusses:
The longer claim period that applies when notice is not published
How creditors may still submit claims
The PR’s responsibility to review and evaluate claims before paying them
It helps the PR understand the implications of choosing not to publish creditor notice.
Letter to Client Discussing Creditor Issues When Notice is Given
This letter explains the creditor claim process when the estate has published a Notice to Creditors.
Topics covered include:
The shortened creditor claim period
The importance of documenting creditor claims
The PR’s duty to evaluate claims and pay valid debts
This letter helps the PR understand how publishing creditor notice affects the administration timeline.
Letter to Client Discussing Closing the Decedent’s Accounts
This letter provides detailed guidance to the PR on how to identify, close, and consolidate the decedent’s financial accounts. Key topics include:
Pre-Closing Steps
Before closing accounts, the PR should:
Open an estate checking or brokerage account
Redirect automatic deposits and recurring payments
Obtain statements covering the period around the decedent’s date of death
Handling Accounts Based on Ownership
The letter explains how to treat different account types:
Sole accounts — transferred to the estate account
Tenancy-in-common accounts — decedent’s share transferred to the estate
Joint tenancy accounts (JTWROS) — pass automatically to the surviving owner
POD/TOD accounts — transfer directly to named beneficiaries
Brokerage Accounts
The letter also explains how brokerage accounts follow the same ownership rules and provides guidance on transferring securities and managing investments during administration.
Letter to Client Discussing Locating and Safeguarding Digital Assets
This letter explains how the PR should identify and secure the decedent’s digital assets, such as:
Email accounts
Online financial accounts
Cloud storage
Social media accounts
Cryptocurrency or digital wallets
The letter emphasizes the importance of securing digital information to prevent unauthorized access or identity theft.
Letter from Client to Credit Reporting Agencies
This letter is used by the Personal Representative to notify a credit reporting agency of the decedent’s death. It includes the decedent’s identifying information (full name, SSN, date of birth, date of death, and last address) and encloses copies of the death certificate and Letters of Appointment.
The letter requests:
- A current copy of the decedent’s credit report.
- Confirmation that a notice of death and a credit freeze will be placed on the decedent’s credit file.
- Placement of an additional instruction requiring notice to the Personal Representative and the estate’s attorney if any new credit application is submitted.
The letter also provides the contact information for both the Personal Representative and the attorney for the estate.
This letter is optionally referenced as an enclosure in the Letter to Client Discussing Initial Tasks After Probate Opened.
Authorization for Firm Access to Decedent’s Information
This document is signed by the client as an omnibus authorization for the firm to access information about the Decedent, the Decedent’s accounts and the Decedent’s tax information.