Instructions For Personal Representative {1821}

Code: 1821 IN THE SECOND JUDICIAL DISTRICT COURT OF THE STATE OF NEVADA IN AND FOR THE COUNTY OF WASHOE In the Matter of the Estate ) of ) Case No. PR , ) Dept. PR Deceased. ) / INSTRUCTIONS FOR PERSONAL REPRESENTATIVE A Personal Representative (sometimes referred to as Executor or Administrator) has certain responsibilities and obligations. By signing these Instructions as provided below, you acknowledge these responsibilities and obligations, and agree to abide by these Instructions and the applicable law in all circumstances, unless the Court, by written order, informs you otherwise. Under Nevada law you may be subject to sanctions or removal if you fail to fulfill your responsibility and abide by the law governing estates. Please read these Instructions carefully, initial each page and sign below where indicated, acknowledging receipt. 1. GENERAL DUTIES AS PERSONAL REPRESENTATIVE As set forth in more detail below, your duties as Personal Representative involve the collection, management, preservation and investm of the Estate assetsent , payment of the proper creditor claims, and distribution of the Estate those b to eneficiaries as designated by the Will or as required by law. Further, it is a fundamental rule of law that a Personal Representative acts in a fiduciary capacity. This means you must be faithful to the Estate. You must keep accurate books and records. You must collect all of the assets of the Estate and you must value those assets. You should review all of the decedents documents to determine the extent of the assets. You cannot commingle Estate assets with yours or others. You are required to preserve the assets of the Estate which includes among other things securing and insuring the assets. You cannot engage in any transactions which will result in a conflict of interest between you and the Estate. You are required to make sure that the decedents debts are paid. With prior Court approval, you may also be required to sell assets if there are insufficient liquid assets to pay the debts and expenses of the Estate. Also, certain assets or items will require special attention. Examples of these assets include without limitation, closely-held business interests, real estate, oil and gas interests, 11/18/03 INSTRUCTIONS FOR PERSONAL REPRESENTATIVE Page 1 of 6 Page s<<<<<<<<<********>>>>>>>>>>>>> 2 ongoing litigation, ongoing court proceedings, vlatile assets or perishable assets. o Finally, your administrative powers are governed by the terms of the Will (if there is one) and state law. It is impossible to foresee evsituaery tion which may arise in the administration of an estate, so you should ask your attorney if you have any questions about your authority to do anything. 2. COURT SUPERVISION Many of the activities of a Personal Representative require Court approval or filings. Examples of these activities, include but are not limited to, the sale of securities, the sale of real property, the sale of personal property, the annual accounting, the inventory of assets, and the distribution to beneficiaries. You should consult with your attorney if you have any questions as to whether you are required to seek Court approval prior to taking a specific action. 3. COMMUNICATIONS It is a good practice to communicate on a regular basis with the beneficiaries as to the status of the Estate proceedings, the Estate accotings andun any investments decisions. If there is a co-fiduciary, you should have regular mengs with them and neither of you should act eti alone. 4. FIDUCIARY NOTICE You should obtain IRS Form 56. The Form 56 should be filed with the Internal Revenue Service. This form will tell the IRS where to send tax information regarding the Estate. 5. TAX IDENTIFICATION NUMBER You must obtain an IRS Form SS-4 Application for Employer Identification Number and file it with the Internal Revenue Servictoe obtain a tax identification number (TIN) for the Estate. The TIN should be given to banks, title companies, brokerage houses and others from which the Estate will receive income. Banks will require a TIN in order to open an estate bank account. 6. ESTATE BANK ACCOUNT You should open a checking account as soon as you receive the Estates TIN. You should deposit all income and you should pay all debts of the Estate, generally after Court approval, from this account. Whenever the checking accoconunt tains a substantial amount (usually more than $20,000.00), you should invest the proceeds in interest-bearing accounts. If liquid assets are substantial, you should consult with a professional investment advisor regarding investments on behalf of the Estate. The Will and state law will determine what investment you are authorized to make as Personal Representative on behalf of the Estate. 7/29/03 INSTRUCTIONS FOR PERSONAL REPRESENTATIVE Page 2 of 6 Pages <<<<<<<<<********>>>>>>>>>>>>> 3Code: 1821 7. ESTATE TAX RETURN Unless the gross Estate is less than the exempt amount ($1,500,000 as of January 1, 2004), a U.S. Estate Tax Return (Form 706) must be filed within nine (9) months of the date of death. All federal estate taxes owing, if any, must be paid within nine (9) months. You may want to engage the services of an accountant or tax attorney to file the U.S. Estate Tax Return with the IRS and with the State of Nevada, if necessary. In addition, if the decedent owned real property in another state, you need to check with the authorities in that state to determine if a return is required. If a return is required and you do not timely file the U.S. Estate Tax Return, penalties and interest will be imposed by the Internal Revenue Service. 8. INDIVIDUAL INCOME TAX RETURN OF DECEDENT You may need to prepare and file the final years income tax return for the decedent if the income of the decedent for the year up until thete of his or her de da ath exceeds the applicable income threshold. You will also need to invtigaeste whether all income tax returns for prior years have been filed and taxes paid. You can make a request of the IRS, at your local IRS office, for a report on the decedents filing status. If required returns have not been filed, you must have them prepared and file them with the IRS. 9. ESTATE INCOME TAX RETURN The Estate will be treated as a separatex taable entity for all income received after the date of death, which may require that you prepare and file an estate income tax return if the income of the Estate exceeds the applicable income threshold. You need to keep a