Being an executor charged with closing the Estate of a loved one can be daunting. But don't worry, it is possible. Several tasks are involved in settling deceased estates, most of which you can complete independently without legal assistance.
Here's a complete guide on how to settle estates.
Organize Important Information
To settle an estate, organize your expenses and time spent on it. Gather a Will, death certificate, financial institutions, and important documentation like tax returns and birth certificates.
Then, Secure your property and take a detailed inventory of the deceased's belongings. Open a checking account in the Estate's name for final bills, court costs, and potential lawyer fees.
So, make a master list of contacts, including business associates, colleagues, neighbors, friends, and relatives.
Determine the Need for Probate or Attorney Help
Depending on the type of estate, estate planning may require legal assistance, but it can be costly. Some choose to hire an attorney for coaching during the process. So, Trust & Will can help determine if a lawyer is necessary. Moreover, Probate is a court proceeding that validates a Will, but not all estates need it. Trusts and small estates may avoid Probate altogether.
Find the Will, If Any
If there is one, finding a will is the first step in the estate settlement process. Finding the will might be simple or difficult at different times.
Examine filing cabinets and desks (at home and work), fireproof boxes, and any other location where the departed individual might have hidden vital records.
If there's a safe deposit box, you can open it to look for the will, even without a key. Property will transfer through intestate succession in the absence of a will.
Take Inventory & Appraise Assets
Make a list of every asset to determine what has to be distributed. To find out if the Estate will have to pay taxes, you might want to have any high-value items assessed.
So, Remember that it is your duty as executor to care for the assets (especially the valuable ones) until they are allocated as intended.
Set Up a Bank Account
You should open a bank account after receiving the so-called Letters of Administration. Collect any money that might be owed to the deceased using this account (i.e., any final salary or insurance benefits).
This money can (and should) be used to settle any debts you may have and any associated funeral or other obligations.
Pay Off Any Debts
Despite the individual's inability to live, most or all of their debts will still need to be paid off. Fortunately, the Estate will settle the bills, not you personally, so your only concern will be determining which companies must be paid first.
Distribute Assets Accordingly
You can divide assets by the last desires of the deceased party once debts and taxes have been settled and, if necessary, the probate process has been finished.
Close the Estate
You can eventually ask the court to legally close the Estate by filing a petition for the discharge of executor responsibilities after completing all the formalities above.
