Settling the Estate
Unfortunately, while you are still mourning a great loss in your life, you will be asked to start taking care of business. Within weeks of the funeral, you will no doubt find yourself meeting with attorneys, accountants, insurance agents and others who will press you to start moving on the processing of your spouse's estate.
Here are a few suggested steps to take to help you become better prepared for your meetings, more informed about your options and in a stronger position to safeguard your family's future.
1. Gather necessary documents
The person managing the decedent's affairs bears the ultimate responsibility of gathering and retaining the decedent's key documents. See The Survivor Assistance Handboo for a detailed list.
2. Establish critical records
Keep an organized list of all property, income, debts and expenses of the estate. This documentation will prove useful when closing the estate.
3. Submit the to
To begin, contact the clerk of the Probate or Surrogate's Court, Register or Registry of Wills in your county. You may want to hire an attorney to assist you.
4. Establish an Estate Account
Open a dedicated checking account. If your attorney recommends, apply for a Taxpayer Identification Number (TIN) for the estate using IRS Form SS-4.
5. Submit address change to post office
This officially informs the public that the personal representative now acts for the decedent.
6. Advertise
If required in your state, place an ad stating that the personal representative has been granted letters of testamentary so that creditors can start processing outstanding claims.
7. Inventory the Assets
Make a list of the assets of the estate, including all real and personal property and place the titles or deeds of each in a secure location.
8. Evaluate the Assets
Arrange for these assets to be appraised at the date of decedent's death. You might also try to project the value of such assets in the future; say six to twelve months from that date. For the more valuable or unique possessions, you may consider hiring an appraiser to valuate the item for public sale or donation to a museum.
9. Manage Assets
Check with your state to obtain a list of investments that are deemed to be reasonable and meet with a professional investment advisor to align the portfolio accordingly.
10. Contact Heirs and
Notify all persons who are named in the Will and likely to receive assets from the estate. Retain a list of their names, addresses, birth dates, social security numbers and telephone numbers for paperwork and such.
11. Pay debts and expenses
Before assets are distributed to beneficiaries the funeral expenses and final bills of the decedent need to be paid.
12. File a Federal Estate Tax Return
A federal estate tax return must be filed within nine months after decedent's death-if the estate exceeds the "applicable credit" amount that otherwise excludes the estate from federal taxes. Consult an attorney for the most current guidelines.
13. Process the Living Trust (if applicable)
If the deceased had a living trust, the estate settlement will be different from that of someone who had a traditional Will or no Will at all. Upon the death of the grantor or the person who funded the trust, the terms of the trust determine who is to get the benefit of the trust.
14. Finalize the numbers
Before distributing assets to beneficiaries a formal accounting of the remaining assets and a history of the transactions that occurred must be provided to the court. Within 90 days, the court will issue a letter formally approving your asset distribution plan.
15. Distribute Assets
Generally, executors do not pay out all of the estate assets until after a period of up to one year when creditors can no longer make claims. As another option, the executor can also decide to distribute most of the assets, while still retaining an appropriate reserve for unpaid claims and the costs of closing out the estate.
For more details refer to The Survivor Assistance Handbook: A Guide for Financial Transition |
