Disclaimer: The information in this blog should be considered legal guidance. It is NOT legal or tax advice. We encourage you to work with a competent CPA or tax advisor of your choosing. Our office is more than happy to collaborate with them on your case.
Having a trust doesn’t mean there’s nothing left to do when your spouse dies. Many people think that once the trust is signed, the paperwork ends. But even with a trust, there are a few important steps that still need attention. And while it’s true that trusts help avoid probate, they don’t cancel out every legal or tax rule that kicks in after death.
NOTE: This blog is only about what happens when the first spouse dies. If both spouses are gone and we’re talking about kids or other heirs, that’s a totally different process. For surviving spouses, though, there are things worth doing, and some of them have strict deadlines.
Step One: Schedule a Meeting and Bring Your Notebook
The very first thing we tell our clients to do when their spouse dies is to schedule an appointment and to bring the trust binder we gave you, along with the death certificate. That meeting helps us determine whether anything needs to be filed. Sometimes, nothing needs to happen. Other times, there are small but important actions we can take that make life easier down the line.
One common filing is called a “year’s allowance.” This is a way to scoop up small leftover assets that didn’t get titled into the trust and move them to the surviving spouse without going through probate. You can use this shortcut for up to $60,000 worth of assets like cars, jewelry, sentimental items, or even checks made out to your spouse that arrive after their death. But there’s a catch: this petition must be filed within 12 months of the date of death. If we miss that window, we lose the right to use this shortcut.
If we file it in time, we can even go back and add things later, like if a forgotten asset pops up after the 12-month mark. But the application itself has to be started before that deadline. That’s why it’s so important not to wait.
Tax Deadlines, Online Filings, and Other Important Notes
Aside from local filings, there can also be tax issues. Some tax-related filings are due within 9 months of death. That’s not a lot of time, especially if your CPA needs to value assets and run calculations. The sooner we know about your situation, the better we can help coordinate with the CPA and make sure nothing gets missed.
Also, as of 2024, all filings with the North Carolina Clerk of Court must be submitted online. That’s new for a lot of people, and it can be confusing. Our office can handle those online filings for you so you don’t have to worry about it. Whether it’s assigning value to personal property, filing a year’s allowance, or submitting documents to the Clerk, we’ve got you covered.
If your spouse has passed away and you have a trust, the next step is simple: bring your binder, your death certificate, and a little time. B. Joseph Causey, Jr., Attorney at Law, is here to help you figure out exactly what needs to be done. Reach out today to schedule your appointment.