The basic process of administering the estates of dead people is fairly straightforward.Someone needs to collect assets, pay debts and taxes, and then transfer the rest of the property to the rightful owners.
Step 1: Understand it.
The property of the deceased can be legally transferred to their beneficiaries and heirs.The estate's debts and taxes are paid during the process.It can happen with or without a will.In order to transfer title to property, you must follow your state's laws.For this reason, it is not optional.You need to go through the legal process to settle the estate.
Step 2: The estate's size should be estimated.
It can take many months for formal probate to happen.You can avoid court altogether with alternate ways of administering an estate.Smaller estates can often be settled with alternate ways.You need to estimate the size of the estate to see if it qualifies.Go through the financial records, tax returns, and other papers of the dead person to find out what they owned.You will be looking for bank accounts, brokerage accounts or other investments, life insurance or annuity policies, retirement plans, deeds to real estate, automobile titles, and any other evidence of value.Common non-probate assets include life insurance, pensions, property held in joint tenancy, and most property in a trust.Estimate the value of the assets.This estimate is used to determine if you can use a simple administration or other non-probate method of administration.
Step 3: The administration should be simple.
Non-probate administration varies by state.No administration is one of the more common ones.Most states allow the property to be distributed without going through the courts if the estate is small.There are different size requirements.If the assets are exempt from creditor claims or are sufficient to only cover funeral expenses, you can avoid probate in Florida.If the estate is valued at no more than $150,000 or the property is less than $50,000, you can avoid the need for a court order.Property may be claimed by affidavit.It's either simple or summary.There is an informal procedure called "summary administration" that most states offer.The estate must be less than a certain amount to be eligible.An estate can't be worth more than $150,000 in California.The maximum in Florida is $75,000.
Step 4: Understand the duties of someone else.
The personal representative is responsible for collecting and safekeeping estate property, paying debts and taxes, and then distributing it to the beneficiaries and heirs.The estate's fees are paid from other professionals, such as lawyer and accountants.
Step 5: If you're eligible, check.
Sometimes no one is named in wills.Individuals will apply to become the executor.States have different rules about who can be appointed as the administrator of an estate.Most states require that the executor be able to handle his or her own affairs and be at least 18 years old.Some states may require you to be a citizen.Felons can't act as executors in most states.
Step 6: Request an appointment
You can request a form from the clerk of court if you are eligible.The court's website has forms posted online.It is important that you fill out your state's form.If you want to decline the position, you can file a petition with the court.The court clerk can give you the form.
Step 7: The form should be completed.
Follow the instructions on the form and use either a typewriter or a pen with blue and black ink.Notating the full name of the deceased is a common mistake.
Step 8: A copy of the application should be given to the court.
The correct number of copies should be made.Take the application to the clerk.No appointment is necessary.It is likely that you will have to pay a filing fee.Call ahead of time to inquire about the fee and payment methods.
Step 9: Inform others of other beneficiaries.
Inform the other beneficiaries that you are applying to be the executor.The notice of application form should be available from the court clerk.
Step 10: A surety bond is needed.
A surety bond is required by some states.A surety bond protects against wrongdoing.The beneficiaries will be compensated if the executor makes a mistake.Estate assets can often be used to pay the bond.If the will states that the executor does not need a bond, then the bond can be waived.Search online for a surety bond company in your area.You can check with the court clerk.The clerk might have a list of companies.The bond company may want to run a background check on you.
Step 11: You should attend the appointment hearing.
Interested parties will have a chance to object to the appointment.The hearing is usually a formality and no one objects to the appointment.The court will hold a hearing if someone challenges your appointment.Each side will argue their case at the hearing.You should contact an attorney if you are being challenged.If all interested parties sign waivers, the hearing can be stopped in some states.
Step 12: The letters of administration can be obtained.
The person who gets a letter of administration is the one who will act on behalf of the estate.You should file a petition with the court if you no longer want to be the executor.A successor will be named if the court finds that you have good cause.The successor executor is usually in the will.The court will consider other family members if not.
Step 13: You have to find the will.
If the person had a will, try to find it.Wills can be found in filing cabinets, desk drawers, and safety deposit boxes.The lawyer of the will may have kept it.You will have to use your state's intestacy laws if you can't find the will.The default rules for how the estate should be distributed are provided by intestacy laws.Discuss this with an attorney.The person who has the will must take it to the court within 30 days of the death.The custodian could be sued for damages if they don't do this.
Step 14: A death certificate can be ordered.
To prove the death, you will need a number of official death certificates.Some certified death certificates are usually arranged for by the mortuary that handles the funeral arrangements.You should ask for at least 10.There is more information on how to acquire a death certificate.
Step 15: You should hire an lawyer.
It's important to hire an attorney.Florida requires an attorney to go through regular probate.In some states, you are encouraged to have a lawyer who can help you navigate the process and keep you from making mistakes.If you want a referral service, contact your state bar association.Consider location when choosing an attorney.It's a good idea to choose an attorney who practices in the state where the person died.This person is familiar with the relevant estate laws.Expertise.Choose an attorney who has experience in this area.If the estate is large, you should choose an attorney who has experience with that type of estate.If you are dealing with complex trust instruments, you may need to hire a trust expert.You can get referrals by contacting your state bar association.There is a personality.You will be in constant contact with the attorney.You should choose someone you like and trust.
Step 16: An accountant will be hired.
The funds are handled correctly if you hire an accountant to manage them.Paying debts can be made easy by an accountant.An accountant calculates and files the tax bills for the estate.Consider hiring a certified public accountant.A CPA has more experience than a regular accountant.The rates for accountants should be compared.Compare the rates offered by other CPAs in the area by getting an estimate from an accountant.
Step 17: Hire a financial adviser.
Financial planners can help you deal with the accounts of the dead.Financial planners can tell you how to close down accounts, cash them out, transfer them, or invest them.You need to gather recommendations if you want to use the title "financial planner."If you hire an attorney first, you can find a good financial planner.
Step 18: Show that the will is valid.
You have to prove that the will is valid.All you need to prove the validity of a will is a statement from one or more of the witnesses who signed it.A self-proving affidavit is one of the types of statements that courts allow.A sworn statement is signed by a witness.The witness made a statement.
Step 19: Other evidence of the will's validity is presented.
Other evidence may be needed to prove that the will is valid if witnesses are no longer alive.The court will accept certain types of evidence.In order to try and verify a will, courts will scrutinize the signature on the will and accept testimony from people familiar with it.
Step 20: The property should be collected.
Estate property can be in the hands of other people.You have a duty to keep the property safe.
Step 21: The estate needs to be raised.
You have to figure out the value of the assets.This could require you to hire an expert.Search online to find an appraiser.You can type your city or county into a web browser.You can search the Yellow Pages.
Step 22: You can create an inventory of the estate property.
The property and values of the dead person will be listed.This is an example of an inventory.There is an inventory of non-probate assets.If you are trying to divide up assets evenly, you will want to know the value of the non-probate assets.
Step 23: Which beneficiaries will get assets?
Specific assets, money, or a percentage of the estate are what each beneficiary will receive under the will.In terms of how detailed they are in allocating property, wills vary greatly.This can be a source of conflict.You have to proceed with great care.Communication lines should be kept open.Talk to your family members to find out who is interested in the property.A typical will doesn't name a beneficiary for each piece of personal property.You will have to decide who gets what.If you have more than one person interested in the same piece of property, you can hold a family auction.People pick a piece of property.The value of each object is taken from what the estate would give them.
Step 24: An estate bank account is a good place to start.
All debts should be paid from the estate checking account.It can be opened in the name of the estate.It is easier to track money coming in and going out with one account.You need a taxpayer ID.You need an ID number to open a bank account.You can apply online.You must also complete the IRS form.You can get a tax ID number by calling the IRS.If you do this, you will fill out a form and mail it in.Make sure the debts are paid into the account.Don't mix personal and estate funds.Personal expenses should not be covered by the estate account.Only use it for the estate's expenses.
Step 25: Contact the people who were in the will.
Chances are that the person had some sort of debt before they died.Mortgages, personal loans, and credit card debt are common debts.The estate will be claimed for payment.In order to notify them, you need to personally contact the bank or credit card company that made the loans.Notices must be published so that any unknown creditor can make a claim on the estate.Your attorney can help you post this notice.The estate cannot be charged for the debt if the creditor does not step forward within the specified time.
Step 26: People who owe money should be contacted.
The deceased may have given money to other people.You will need to collect on the debts to help settle the estate.Inform those who owe money that they need to make a payment to the estate.You must send a letter to this effect and keep copies on file.To find out how long it will take a debtor to pay their debts, check with your attorney.This information should be included in the letter you send.
Step 27: Inform the SSA if you know something.
Government agencies and private companies are allowed to know that the deceased has passed.If the person was receiving Social Security payments, you should let the SSA know of their passing.Pension providers, veteran's benefits affairs, and life insurance companies are some of the organizations you should contact.
Step 28: Financial accounts to be closed.
You should contact the banks and brokers that had accounts with the dead person.You will have to close the accounts and transfer assets to the bank.The funds in these accounts are owned by the estate.You should inform credit card companies of the death.The accounts will be closed by the credit card companies.The credit cards should be destroyed after the accounts have been closed.The credit card companies will make a claim on the estate.Before distribution of assets to beneficiaries, you should pay off all of the estate's debts.
Step 29: Don't pay no taxes.
You are responsible for paying taxes.Income tax and estate tax are the most common taxes.Information about how to file can be found in IRS Publication 559.If you owned property in any of the states that impose an inheritance or estate tax, you will need to file tax returns.
Step 30: Pay bills.
Estate debts need to be paid out of the estate's assets.Paying the debts should be easy if there was a lot of cash in the estate.You need to sell assets to pay debts.The funeral expenses should be paid by the executor.The order in which you disburse estate assets will be designated by your state statute.The order outlined in the statute is what you must follow.You might be presented with a claim against the estate that you don't think is legit.It's up to you to decide whether to pay the claim or not.The estate can be sued by the creditor if you don't.You should speak with your attorney about how to proceed if you think some claims are not legitimate.
Step 31: Specific assets will be given to which beneficiaries.
Specific assets, money, or a percentage of the estate are what each beneficiary will receive under the will.In terms of how detailed they are in allocating property, wills vary greatly.This can be a source of conflict.You have to proceed with great care.Communication lines should be kept open.Talk to your family members to find out who is interested in the property.A typical will doesn't name a beneficiary for each piece of personal property.You will have to decide who gets what.If you have more than one person interested in the same piece of property, you can hold a family auction.People pick a piece of property.The value of each object is taken from what the estate would give them.
Step 32: The remaining estate property should be Liquidated.
If property is not specifically given to a beneficiary and no one wants the actual item, then you will need to liquidate the property and distribute the proceeds to the beneficiaries.You need to speak to a real estate agent.A real estate agent can help you sell your property.Inform beneficiaries of the sale price and listen to any recommendations they make.Do you know where you can sell personal property?Furniture, books, mementos, etc. are personal assets.Where is the best place to sell them?If there are art or antiques, ask the person who appraises them.You can probably hold a yard sale for cookware and clothes.Keep track of how much money the sale brings in.
Step 33: Property will be delivered to beneficiaries.
When and how to collect specific pieces of property should be given to beneficiaries.If you need to deliver the property, you should work with the beneficiary on how to pay for it.You distribute the rest of the estate after you distribute specific property.The money will be distributed once the estate has been wound down.You should work with the beneficiaries to agree on when and how the money will be distributed.
Step 34: If you want to get paid, you need to.
You can decline to be compensated for your services, but you are probably entitled to do so.State statute sets the amount of your compensation.In Oregon, an additional 4% of any amount over $1,000 but less than $10,000 is added to the estate's value.The executor is entitled to 1% of non-probate property.
Step 35: The estate should be shut down.
The estate can be closed once assets are distributed and bills are paid.The estate is not closed until you receive the final order from the court.It is important to involve the estate's attorney in this process because you will probably have to file a petition with the court.When you receive the final disposition of the estate, make sure to keep a copy along with any other relevant paperwork.It is a good idea to consult with your estate's attorney and accountant as to how long you need to keep the paperwork.If you opened a bank account in the estate's name, be sure to close it.