Losing a loved one is tough, and the last thing you want to deal with is the legal and practical steps that follow. But, these steps are crucial and understanding them can make things a bit easier.
This process, known as settling an estate, can vary from state to state. So, if you have specific questions, it’s best to consult with an experienced estate or probate attorney. They can be particularly helpful when you start the probate process (which involves the courts) or when you’re dealing with an emergency or unexpected death.
When a family member passes away, there are some immediate steps to take. First, inform the closest family members and friends. Then, reach out to anyone who might have important information, like their employer, doctor, lawyer, or accountant. If it’s too much for you, don’t hesitate to ask others for help.
If the deceased was the sole caretaker for any pets, children, or adults with disabilities, make sure they’re taken care of. If there’s an estate plan, it should outline what happens to these dependents. If not, you’ll need to act quickly. In urgent situations, you may need to ask a court for emergency orders to ensure their protection.
Next, arrange to transfer the body to a funeral home or mortuary. Healthcare facilities can usually assist with this. The deceased’s estate plan might include the name of the chosen funeral home.
You’ll also need to obtain a pronouncement of death, which is a form completed by a medical professional stating when and where the person died. The specifics of who can provide this vary based on where the person died and the circumstances of their death.
Following this, you’ll need to get copies of the death certificate. This is a legal document that includes the time, location, and cause of death. You’ll need these to notify interested parties, like banks or creditors.
After transferring the body, start preparing for a funeral, cremation, or burial ceremony. If the deceased left instructions, follow them. If not, make the plans yourself or with other family members and loved ones.
Once the immediate needs are addressed, you can start managing and settling the estate. This involves dealing with the deceased’s assets, debts, and other issues. Only those chosen by the deceased or granted permission by a court can settle the estate.
The estate settlement process can be complex and lengthy, so it’s advisable to contact an estate planning and probate attorney, especially for valuable estates. The cost of hiring an attorney varies based on your location and the size of the estate.
The estate is responsible for any debts that arise after the death and throughout the estate settlement process. If you personally incur expenses, you can bill the estate for compensation. However, you won’t be paid back immediately.
Probate is a legal process that applies after someone dies or becomes incapacitated. There are two main types: small-estate (or summary) probate, and traditional probate. Small-estate probate is a simpler process for estates below a certain value. Traditional probate involves more court supervision and approval and is used for larger estates or those with conflicts or disagreements.
The probate process generally involves locating the will, initiating probate, notifying heirs, beneficiaries, and creditors, managing the estate, performing an inventory, liquidating assets, paying debts, distributing assets, closing the estate, and resolving conflicts.
There are also some special circumstances to consider. Not all assets become part of the probate estate. For example, if the deceased had a transfer-on-death bank account and named a beneficiary, the beneficiary inherits the funds automatically. Trusts, which are independent legal entities, can continue to exist after the death of the person who creates them and can usually skip the probate process.
If the deceased left behind a child under the age of 18 with no surviving parent or guardian, the court must determine who the new guardian is. Any inheritance the child receives will be held in trust until they’re old enough to become the owner.
Finally, it’s important to understand the difference between estate taxes and inheritance taxes. The estate is responsible for any estate taxes owed, but if you receive an inheritance and live in a state with an inheritance tax, it’s your responsibility to determine if the tax applies to you and how much you have to pay.
Dealing with the death of a loved one is hard, and managing an estate can be a difficult task. But with some basic research, patience, and possibly the help of an expert, you can navigate this process.
