The very last thing on your mind after losing a loved one is paperwork and tough decisions, but taking the steps to settle an estate can come with a lot of helpful closure.
That doesn’t mean it’s easy. From navigating legal requirements to managing personal grief, settling an estate can be overwhelming.
We’re here to help make that process as accessible as possible. Let’s break down definitions, the necessary steps involved in settling an estate, and practical tips to help you manage this difficult period with greater efficiency and less stress.
What Does It Mean to Settle an Estate?
“Setting an estate” can seem like a wide-ranging, comprehensive, and overwhelming term.
Let’s demystify it a little.
Here’s exactly what it means to settle an estate: Settling an estate is the legal process of distributing a deceased person's assets according to their will (or according to state laws if no will exists). Although a lot goes into this process, a clear, organized approach can ensure that the decedent's wishes are honored while minimizing unhelpful, stressful disputes and delays.
Follow These Steps to Settle an Estate Successfully
Clearly, that’s easier said than done.
Here’s a process we recommend following.
Step 1: Gather the necessary information.
To begin settling an estate, you must first gather essential documents, which may include:
- The decedent’s will, which should outline their wishes for asset distribution.
- The decedent’s death certificate, which you’ll need to produce for several legal processes associated with settling the estate.
- The decedent’s social security number, which will be used to notify government agencies of your loss.
- A list of the decedent’s assets and debts, which will help with inventorying the estate and determining the best steps forward.
Step 2: Open the estate.
Your loved one’s estate must be officially “opened” before you can change it or manage it. This is simply a step that establishes what’s happening and creates a history of estate management actions. It’s a bit involved, but worth it to keep your loved one’s assets organized.
To open the estate, you’ll need to submit a petition to the probate court along with the necessary documents we listed above. The court will then issue letters of administration. These officially allow you to manage the estate’s affairs.
Once the estate is open, use the letters of administration to notify everyone you’ll need to work with to settle the estate. This includes both beneficiaries and creditors. In some cases, you may need to publish a “notice of probate,” which helps put the information out there for people you don’t specifically know to inform.
Step 3: Validate the will.
“Probate” might sound scary, but it just refers to the legal process of validating, authenticating, and allowing the distribution of assets according to your loved one’s documented wishes.
Going through probate is a proactive step to resolve disputes before they happen because you’ll take things very slowly, thoughtfully, and legally. It’s likely worth hiring a probate lawyer to ensure this part goes as smoothly as possible. (Your probate lawyer can also help with letters of administration, notices of probate, and other vital parts of settling your estate.)
Step 4: Manage the estate.
Now that the estate is open, you’ve informed everyone, and you’ve established that you have the right to move forward, it’s time to get the estate’s affairs in order. This may include:
- Taking a thorough inventory of the deceased’s assets, including real estate, bank accounts, personal property, and investments.
- Obtaining professional appraisals for valuable items to determine their fair market value.
- Identifying all outstanding debts and taxes owed by the estate.
- Using the estate’s assets to settle any obligations.
- Taking meticulous notes of all of these management steps.
Your attorney and other professionals in your community, such as your local banking team, can help you with these steps. Once you’ve completed these items, you’ve taken a significant step toward ensuring all legal and financial obligations are met while honoring the deceased’s wishes.
Step 5: Distribute the estate.
Now that you’ve managed the estate’s various obligations, you should be able to distribute any remaining assets according to the instructions in the will. This step may involve transferring property titles, distributing funds, or allocating personal belongings.
Again, your banking and legal professionals can and will help—but our main recommendation is this: Prioritize clear, fair communication during this stage. This can help you avoid misunderstandings and ensure everyone is aware of their inheritance, making a potentially fraught experience much easier.
Once all assets have been distributed, finalize any remaining administrative tasks. This includes completing final tax returns and accounting for the estate. Finally, file a petition for discharge with the probate court to formally close the estate, officially ending your duties as executor.
Ready to Get Started? Here’s How BNC National Bank Can Help
As your friendly neighborhood community bank, BNC National Bank is ready to help you through this process with a few key services. We can notarize essential documents, assist in opening necessary accounts to manage the deceased's assets, and support you in locating and consolidating various accounts and assets.
We can also provide emotional support during this difficult time, offering a comforting presence as you navigate the estate settlement process. If you’re curious about your next steps, please reach out—we’re here to help.
