Whether your spouse has just passed away or you have lost your mom or dad, the emotional trauma of losing a loved one often comes with a bewildering array of financial and legal issues demanding attention. It can be difficult enough for family members to handle the emotional trauma of a death, let alone taking the steps necessary to get these matters in order.
If you are the executor or representative of the will, you first should secure the tangible personal property, meaning anything you can touch such as silverware, dishes, furniture or artwork. Then, take your time while bills need to be paid. They can wait a week or two without any real repercussions. It is more important that you and your family have time to grieve.
When you are ready, you should meet with an attorney to review the steps necessary to administer the will. While the exact rules of estate planning differ from state to state, the key actions include:
- File the will and petition in probate court in order to be appointed executor.
- Collect the assets. This means that you need to find out about everything the deceased owned and file a list of inventory with the court.
- Pay the bills and taxes. If an estate tax return is due, generally, it must be filed within nine months of the date of death with some opportunity for an extension.
- Distribute property to the beneficiaries. Generally, executors do not pay out all of the estate assets until the period for satisfying claims of creditors has passed, which can be as long as a year.
- Finally, though an independent executor may not generally have to file a final accounting of the estate, it is best practices to maintain an account of all estate assets, expenses and estate distributions.
While some of these steps can be avoided through trusts or joint ownership arrangements, whoever is left in charge still has to pay all debts, file tax returns and distribute the property to the rightful heirs.
For more information about an executor's duties, feel free to contact us to learn more.