“This expert guide presents 11 proven methods to handle estate settlement properly with support from professional advice and tested practices.”
Being named as an executor is an honor and a large undertaking. An article from msn offers a guideline: “Executor’s Checklist: 11 Essential Steps to Smoothly Settle an Estate.”
Obtain death certificates. Secure multiple original death certificates from the funeral home. You’ll need them to start insurance claims, close Social Security and many other future transactions.
Find the will and other estate planning documents. An estate planning attorney can help you file the will with the probate court. This is necessary for the executor appointment to be approved and the will to be validated. Once these two events occur, you can begin to settle the estate. If there is no will, an estate planning attorney should be contacted to guide the process through the courts.
Notify beneficiaries. You’ll also need to notify family members to avoid misunderstandings, even if they are not mentioned in the will. The attorney will tell you if you need to publish a legal notice in a local newspaper or other outlet. Social Security, Medicare and any other government agencies must be notified. Being transparent and thorough will prevent legal problems from occurring later on.
Secure and inventory assets. If the decedent hasn’t done so, create an inventory of all assets, including real estate, investment accounts, cars, boats and personal belongings. A thorough inventory would minimize the chances of lost assets and conflicts with heirs.
Establish an estate bank account. You’ll need to apply for an EIN number first, then you’ll be able to open an estate bank account to consolidate the deceased’s accounts. The executor uses the funds in the estate account to pay bills, debts, taxes and any estate-related expenses. A clear record will help in reporting to beneficiaries.
Manage ongoing expenses and settle debts. Utilities, mortgage payments and insurance premiums still need to be paid. By keeping them up to date, you maintain the estate's value and prevent disruptions to essential services. If there is no money in the estate, the executor may need to sell assets to pay bills. Document everything to protect yourself from any future conflicts.
File tax returns. The executor is responsible for the decedent’s final income tax return and any estate tax returns. If the decedent lived in a state with an inheritance tax, the inheritance tax is the responsibility of the heirs, not the executor. Consult with a local estate planning attorney to be sure that the required tax payments are being made.
Have assets evaluated by a professional. An expert should value businesses, jewelry, art, collectibles and real estate. You should not do the real estate valuation, even if you are a realtor. A certified appraiser should value high-ticket items. Your estate planning attorney will have a network of experts to offer.
Pay estate taxes. If the estate is higher than the federal estate tax exemption limit, the estate will need to pay taxes within the applicable time limit. If you fail to meet the deadline, the penalties are strict and could result in substantial fines. While the current federal estate tax exemption is at an all-time high of $13.99 million per person, this may change in the future.
Distribute assets. Assets should not be distributed to heirs until all debts and other costs have been paid. Make sure to get receipts or signed agreements from beneficiaries to have proof of compliance.
Close the estate. Don’t overlook this final step. The court must be presented with a final financial summary of all financial dealings, including asset prices and debt repayment. Once the approval has been obtained, estate bank accounts can be closed and you can hang up your executor hat.
As you can see from these 11 steps, being an executor is a large responsibility. If it’s too much, speak with an estate planning attorney who can take on all or some tasks or provide guidance.
Reference: MSN (April 14, 2025) “Executor’s Checklist: 11 Essential Steps to Smoothly Settle an Estate”