Forming an entity for an Estate? - Posted by IB (NJ)

Real Estate Investing
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Posted by IB (NJ) on February 09, 2006 at 23:01:24:

Thanks Rick. So I guess you;re saying (and I know you’re not an attorney) that the estate as an entity was already established when she probated the estate. She only has to call the IRS for a tax id number.

Thanks again.

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Forming an entity for an Estate? - Posted by IB (NJ)

Posted by IB (NJ) on February 09, 2006 at 12:09:45:

Does anyone know what type of entity an estate would be formed as?

A seller who I just purchased a piece of property from needs to form the entity ‘The Estate of Mary Allen’ in the state of GA. The check is written in that name and the seller is the Administrator. Would that be an LLC, Corporation, etc?

Thanks in advance.

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Probate estate as entity - Posted by Rick Harmon (CA)

Posted by Rick Harmon (CA) on February 09, 2006 at 17:15:53:

Typically, if a decedent’s estate is to be probated, the personal rep. (Administrator here) would open the estate and either use the decedent’s SS# or apply for a Fed Tax T.I.N. #. In order to deposit the check and not co-mingle the funds with other (i.e. personal) money, the adminstrator normally establishes a separate estate account. That should surfice as the entity your Admin. seeks.

Lastly, after the estate is distributed (cash from sales proceeds included) the seller may wish to form an entity to protect his personal share of the inheritance (if he is taking part as a distributee). This is money that is his to do with as he choses.

Of course, the estate attorney should be the primary advisor for your seller.