When someone close to you passes away, managing their estate can feel like a heavy task since it involves many steps and decisions that you may not have expected. Estate administration is the process of gathering what the person owned, paying any remaining debts and giving the rest to the right people.
If you are named to handle the estate or take on that role yourself, knowing what to expect can make things easier.
Find the will and get appointed
Your first step is to look for a will. If one exists, it may name you as the person to manage the estate, and you will need to ask the court to officially approve you. If there is no will, you can still ask to be appointed if you are a close family member.
Inform family and file documents
Once the process starts, you will file the necessary paperwork with the court. This may include the will, a death certificate and a list of what the estate is worth. You will also need to notify the family and anyone named in the will that the estate is being opened.
Make an inventory of the estate
Next, you will need to list all the property and money that belonged to the person. This includes things like houses, bank accounts, cars, retirement savings and personal belongings. You must also keep track of any debts they left behind, such as loans, taxes or credit card bills.
Pay debts and final bills
You are responsible for paying off debts using the estate’s funds. If there is not enough money, you may need to sell some property. You must follow a set order when paying bills, starting with costs of administration and final expenses.
Share what is left
After all debts are paid, you will share what remains with the rightful heirs or those named in the will. If there is no will, you must follow the rules for estates without one. Make sure to document everything clearly.