In “How to Settle an Estate (part 1), we took a closer look at six of the necessary steps in the process of settling an estate. If you’d like to check it out again, or in case you missed it the first time, you can find part 1 (here). When you’re ready, come back here and check out part 2 below, where we’ll cover the last six steps in the process.

If you’re ready, let’s continue!

Communicate With Beneficiaries

If the estate goes through probate, you’re going to have to send some very specific notices to some very specific people—beneficiaries. The court, or your lawyer, can help you in this regard. And regardless of whether or not any court proceedings take place, it’s not a bad idea to be in consistent communication with any and all beneficiaries.

It’s important that they be kept apprised of goings-on, as they can tend to grow suspicious and unhappy if they don’t hear anything for long periods of time. Even if nothing is really happening, let them know that you’re still working, things are still moving forward, and they’re still going to get their inheritance. If you aren’t open or honest with them, they can go to court and try to have you kicked out!

Take Care of Any Assets

This is one of the most important jobs of the executor. You want to make sure that the estate is well-maintained, small valuables are looked after and secure, and bigger items remain insured. Remember that your only goal here is to not lose money; it isn’t to reap any huge benefits.

Collect any Money Owed to The Estate

This step will probably take a lot of time and a lot of paperwork, but it’s generally pretty easy. You can also place any money you collect into the estate’s bank account.

Pay Any Bills Owed

As long as there’s money in the estate to pay them, it’s your responsibility to make sure that any and all legitimate bills get paid on time. Rest assured that you don’t have to pay anything out of your own money. If you don’t think there’s going to be enough, get some help from the court or an attorney on what should take priority!

Deal With any Taxes

If the person who has died has a tax preparer, they can be a tremendous asset here, as you’ll need to file taxes not only for the deceased but also possibly the estate as well (but only if the estate was over $5 million). Smaller estates may owe a separate tax, but that all depends on where the person lived or owned property.

Distribute Assets

When all debts and taxes are paid and probate is finally closed, your final job is to distribute the assets among beneficiaries. Then you can breathe a sigh of relief because your job is finally done!

So ends our closer look at how to settle an estate! Should you need any assistance, contact Scott Counsel today and speak with our Estate Planning Attorneys.

In this article, our New Jersey estate planning attorney will explain how to settle an estate. Please note, however, that this article will only cover the first six items. So, without further ado, let’s jump in and get started!

Find the Will

A will is an important thing to have, but you cannot do your job as executor until you find it. Sometimes that’s an easy task, and for others, it’s not. It’s a very important document, and chances are good that the person will have kept it somewhere safe. Look everywhere you can to find it.

File The Will in Probate Court

So, you found the will, now what? You’ll want to file it with the local probate court, but make sure to give them the original while still retaining a copy for yourself. Even if you don’t think you’ll need to deal with probate hearings, you must still file the will with the court.

Notify Agencies and Businesses of the Death

This includes:

• The post office
• Utility companies
• Credit card companies
• Banks, and
• Other businesses the deceased may have had an account with.

You’ll also want to notify any agency through which the deceased was receiving any benefits (like the Social Security Administration). The faster you do, the faster any payments can be stopped and you don’t have to worry about giving money back that the estate isn’t entitled to. And less hassle is always good.

Inventory Assets and Get Appraisals

If you’re going to go through probate, you’ll need a comprehensive list of all the stuff the deceased person owned. Also, it can help you to better keep track of valuables and decide how you’re going to transfer the different items, divide property among beneficiaries who get equal shares, and determine whether or not the estate will owe any state or federal estate taxes.

Determine Whether or Not You Need Probate

In order to do this, you’ll need to figure out the value of all the property that is subject to the probate process, determine how title is held, and learn the rules on what estates can qualify for simpler procedures. It would also be wise to hire an attorney to help with any probate paperwork or help to solve any problems between beneficiaries and creditors.

Coordinate with a successor trustee

If the deceased has left both a will and a living trust, and lots of people do, you’ll need a partner who can be in charge of any trust assets (i.e. the successor trustee). As we saw in another article, a will and trust are similar in a lot of ways, but the major difference is that trust property isn’t required to go through the probate process like things that are named in the will. It can go directly to the people who inherit it! To learn more about how to settle an estate, click here to read part 2.