Home Moving How to Manage a Deceased Estate

How to Manage a Deceased Estate

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By Stephanie Hyland, Storage.com

Losing a loved one is difficult, but settling their estate doesn’t have to be. If you have recently become an executor or personal representative of a loved one’s estate, the process may seem daunting and may have you overwhelmed if you don’t know where to start. By staying organized and knowing what steps need to be taken, managing property, filing a tax return, and understanding all of the legal documents that correlate with this process can help put you at ease.

Here is a list of 10 things every executor will need to know when it comes to settling a loved one’s estate.

1. Locate Important Documents and Appraisals

people looking at documents

Since you have already been notified that you are the personal representative for your loved one’s estate, chances are you have located their will. However, other important documents that you need to have in your possession include a copy of their death certificate, trust information, proof of their insurance, investment account information, bank account information, real estate property documentation and past employment documentation. If your loved one was receiving social security, it is also important to notify the agency as soon as possible of the death. This is important to remember so you can avoid having to go through the process of returning a social security check. If your loved one was an art lover or collector, and you cannot find values of certain objects, an appraiser will be able to give you a documented appraisal for any items you may have questions about.

2. Apply For Probate

judge signing a paper

Every state is different when it comes to applying for probate. Review your state laws to see if the estate you are handling must go through probate court. If the answer is yes, the probate court will legally recognize you as the executor with letters testamentary, also known as surrogate certificates. These types of certified documents are proof that you have been recognized as the legal authority to act on behalf of your deceased loved one’s estate. Acquire these documents in order to get the ball rolling with paying their current and incoming bills, filing a tax return, managing and distributing assets, communicating with the beneficiaries, and accessing bank accounts.

3. Contact Individuals Mentioned in the Will

Will and testament with glasses

When it comes to notifying beneficiaries who were named in the will, it is important to let them know that none of the assets, no matter how big or small, can be distributed until the probate process has been completed and all creditors have been paid in full or prioritized by the state.

4. Consider Hiring an Attorney

shaking hands

When it comes to filing court documents to settle an estate, leave it to a professional, especially if arguments arise between beneficiaries. An attorney who specializes in this area will know the correct paperwork that is needed for specific steps of this process and will be able to answer any questions your family may have. Hiring an attorney can help assure that your family and the assets noted by your loved one are not tied up in a courtroom any longer than necessary.

5. Stay Organized

Notebooks and calculator

With so many documents, checks, and other important paperwork on your desk, it is important to stay organized to ensure all records are being kept up-to-date. Creating a designated filing system for all of your loved one’s paperwork will help keep everything in order and easy to find. When it comes to settling an estate, it’s always a good idea to make duplicate copies of paperwork that you send to creditors and other outside parties just in case any questions are asked later. When you get toward the final stages of this process, you will need to compile a final accounting that will need to be approved by all beneficiaries involved. Staying organized will help you stay stress free from start to finish.

6. Pay Off Valid Creditors

check

As the executor, it is your responsibility to ensure that any outstanding debt that your loved one had gets paid. If the debt is more than the worth of their assets, inheritors are not liable for settling the difference. Before paying off any debt, as the executor, you are responsible for ensuring that the estate’s assets can cover the entire cost of any outstanding debt. If that won’t happen, creditors will be prioritized by the state. If your loved one did not keep an organized budget for you to review, some of the first places to look for outstanding debts are in their incoming mail, their checkbook, their email accounts, and their past tax returns.

7. Manage Any and All Property

Man signing paper

When it comes to managing the property your loved one owned, the main concern is protecting the area(s) from damage. If you do not know how much the real estate is worth, it is important that you hire a property appraiser to give you a quote. If your loved one was a business owner, you may need to take steps to ensure that the business is kept running until any further decisions are made about its’ future.

8. File Tax Return for Deceased Party

File tax return note

When it comes to filing a tax return on your loved one’s behalf, consider using a tax professional who can help make that stack of paperwork a stress-free experience. A professional can help solve any issues involving inherited assets such as a residence, investments, stocks, or retirement accounts. They can also give you a run down of all of the important information you will need to bring with you to an appointment to make sure that the tax return is filled out correctly and both the income and estate taxes are covered.

9. Distribute to Beneficiaries

money

After all debts have been paid, it is your job as the executor to make sure that every beneficiary receives what they were promised in your loved one’s will or in accordance with the law. During this distribution process, trusts may need to be established if noted in the will.

10. Finalize Estate in Court

house for sale

After the creditors, beneficiaries, and other financial decisions have been made or fulfilled, the final accounting that you complete will be reviewed by the court. The final accounting must include any distributions, expenses, and any type of income earned by your loved one’s estate since their death. Once all of the accounting has been approved by the beneficiaries and the court, the court will issue a final report and close the estate.

Home Moving Using Self Storage to Manage a Deceased Estate

Using Self Storage to Manage a Deceased Estate

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Losing a loved one is a difficult situation to deal with, and handling their estate can sometimes be overwhelming, both physically and emotionally. Many people are left with a lot of belongings to take care of when a loved one passes away, but may desire some additional time for mourning before going through all of it. In times like these, when all you want is time to collect your thoughts, self storage can be a helpful aid.

Biding Time With Storage

Real estate markets and foreclosures can force you to deal with a loved one’s estate before you are emotionally ready, which puts you in a very difficult situation. If you need just a little more time to get your mind clear, self storage can give you the flexibility to store all of their belongings and still take all of the time you need. Even if it’s just for a short period of time, the ability to delay the task of going through the estate can make a big difference.

Storing Extra Keepsakes

Sometimes a loved one leaves you with so many valuables that you and your family don’t even have enough room to store it all. If there is a large amount of belongings left behind that you don’t have room for, but are too valuable to throw away, a storage unit can be an affordable and easy solution. Family heirlooms and other sentimental belongings can be kept safe until they can be handed down to children at the right time or until you find a proper use for them.

Losing a loved one can be a troublesome experience. Don’t let the stress of handling their estate pile onto your already elevated emotions. If you need time to clear your mind, or if you simply need more space, self storage is a worthwhile solution.

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Stephanie Hyland often writes blog posts about how storage units can not only benefit those who are moving to a new city, but also those of us who are traveling, going to college, or just looking for a way to alleviate some of the clutter within our home. When she is not writing for Storage.com, she likes spending time with her husband and playing with their two dogs.