When someone passes away, their estate (all the money and possessions they owned at the time of their death) is meant to be distributed in a certain way. A person’s passing is a time of mourning, which can make asset distribution feel a bit strange since it’s all strictly business.
The probate process must be completed before the assets can be distributed (unless measures to avoid probate were taken beforehand).
Submission of the Will
Assuming the deceased left a will behind (not everyone does), the will must be submitted to the probate court. This helps make sure that everything gets distributed the way it is meant to be.
Once the will has been submitted to the probate court, the judge will issue an order that authorizes the executor named in the will to carry out the responsibilities that the position entails. If no executor was named, the judge will appoint one.
Pay Off Debt
Debts don’t just vanish when someone passes away–they still have to be paid off. The executor is tasked with settling all outstanding debts that were left behind. Fortunately for the executor, they aren’t required to settle any outstanding debts using their own resources.
Perhaps less fortunately for any beneficiaries or heirs, the debts are paid off using as much of the estate as is necessary. That may impact what assets remain for distribution.
Inventory the Assets
An inventory of all assets belonging to the deceased at their time of death must also be created. This should be done before the debt is paid off since it will make doing so much simpler. It also makes it possible to distribute any remaining estate assets correctly. The inventory should include things like personal property, assets with titles, investments, bank accounts, and any other financial holdings. If the deceased owned a business that must still be managed, a trust may be established. Any properties in other states will require that the probate process be pursued through the state where the properties are located as well.
These aren’t the only steps that must be taken before estate assets can be distributed. Any outstanding taxes must be paid first as well. Each step that must be done before estate assets can be distributed has multiple steps within. Even the asset distribution itself can be rather involved. As frustrating as all the waiting can be, try to be patient. The process should take as long as it needs for everything to be done in the proper order.
Did you enjoy reading this article? Here’s more to read. How to Get Ready for a Lengthy Inheritance Battle
