Settling an estate after someone dies means taking on a defined sequence of legal and financial tasks: gather documents, notify the right agencies, figure out which assets go through probate and which do not, open a court case if one is required, inventory what the person owned, pay valid debts in the correct order, file the necessary tax returns, and distribute what remains to the people entitled to receive it. The person doing this work is called the personal representative or executor. Some estates wrap up in six to nine months; others take years.
What to Do in the First Weeks
Start by ordering certified copies of the death certificate. Banks, insurance companies, retirement plan administrators, the Social Security Administration, and the probate court will each want their own. Ordering 8 to 12 copies from the vital records office or funeral director is a reasonable starting point, and estates with many accounts or policies may need more.
Report the death to the Social Security Administration promptly. The funeral director can do this for you if you provide the deceased person’s Social Security number. Otherwise, call SSA at 1-800-772-1213 or visit a local office. SSA does not accept death reports online or by email.1USAGov. Report the Death of a Social Security or Medicare Beneficiary
One detail catches many families off guard. Social Security cannot pay benefits for the month someone dies. If the person died in July, the payment that arrives in August (covering July) has to be returned. If it came in by direct deposit, contact the bank quickly and ask them to send it back.1USAGov. Report the Death of a Social Security or Medicare Beneficiary
Figure Out What Actually Has to Go Through Probate
Before filing anything with a court, work out what the deceased person owned and how each asset is titled. Several common asset types pass directly to a beneficiary or co-owner and never touch the probate court:
- Life insurance policies, 401(k)s, IRAs, and similar accounts pay out to whoever is named as beneficiary on the paperwork.
- Bank accounts with a payable-on-death designation and brokerage accounts with a transfer-on-death designation go directly to the named person.
- Real estate, bank accounts, and vehicles held as joint tenants with right of survivorship belong to the surviving co-owner automatically.
- Property placed into a revocable living trust during the person’s lifetime is distributed by the trustee under the trust’s terms, outside of court.
These assets still require paperwork. Beneficiaries typically submit a death certificate and claim forms to the institution holding the asset. The probate court has no authority over them. An estate made up mostly of beneficiary-designated accounts and joint property may have very little left that needs probate at all.
Small Estate Shortcuts
Every state offers some form of simplified procedure for estates below a certain value, and using one saves months of time and significant legal fees. Two options are common.
A small estate affidavit lets heirs collect assets by presenting a sworn statement directly to the institution holding them, with no court case at all. The heir submits the affidavit with a death certificate, and the bank or brokerage releases the funds. Dollar limits vary widely by state. Some cap this at $15,000, while others allow affidavits for personal property up to $100,000 or even $200,000.2Justia. Small Estates Laws and Procedures: 50-State Survey
Summary administration is a streamlined court process that skips time-consuming steps like appointing a formal personal representative or publishing extended creditor notices. Eligibility depends on the estate’s value and sometimes on how long ago the person died.
A few limits apply to both routes. Most states require a waiting period, often 30 days after death, before you can use a small estate affidavit. Real estate usually cannot be transferred through an affidavit alone. If the heirs disagree about who gets what, neither shortcut works well.
Opening the Probate Case
If the estate does not qualify for a small estate procedure, formal administration begins with a petition filed in the probate court where the deceased person lived. The petition goes in with the original will, if one exists, and a certified death certificate.3Justia. Probate Administration and the Legal Process
The court reviews the will to confirm it was properly signed and witnessed under state rules. If it is valid, the court issues “letters testamentary,” which give the personal representative authority to act for the estate. When there is no will, the court issues “letters of administration” and appoints someone (usually a surviving spouse or close family member) to serve.3Justia. Probate Administration and the Legal Process
Filing fees for opening probate generally run a few hundred dollars. A simple, uncontested estate might close in six to nine months. Contested estates or those with complicated tax issues can run for years.
What the Personal Representative Is Responsible For
If the will names you and the court appoints you, you take an oath to carry out the duties faithfully. Most states also require a surety bond, an insurance policy that protects beneficiaries if the representative mismanages estate funds. Wills often waive the bond, and courts frequently skip it when the representative is also a beneficiary. When a bond is required, the estate pays the premium.
Once appointed, you owe a fiduciary duty to the beneficiaries. That means acting in their interest rather than your own, keeping personal funds completely separate from estate funds, and keeping detailed records of every transaction. Playing favorites among beneficiaries, making reckless investments with estate assets, or failing to account for spending can get a representative removed and held personally liable for the losses.
Your practical job includes gathering and protecting assets, getting property appraised, paying valid debts and taxes, keeping beneficiaries informed, and eventually distributing what remains under the will or under state intestacy law. Attorney and accountant fees for larger or more complex estates are legitimate expenses paid from estate funds, not out of your own pocket.
Building the Asset Inventory
One of your first tasks is putting together a complete inventory. Go through financial records, mail, tax returns, and safe deposit boxes to find every account, property, and valuable possession. The inventory typically covers:
- Checking and savings accounts, CDs, brokerage accounts, and cryptocurrency holdings.
- The family home, rental properties, vacation homes, and vacant land.
- Retirement accounts and life insurance, which may bypass probate but still need to be identified so beneficiaries can file their claims.
- Vehicles, jewelry, art, collectibles, and household furnishings of meaningful value.
- Ownership stakes in companies, partnerships, or LLCs.
Each asset needs a value as of the date of death, because that figure matters for both taxes and fair distribution. Bank balances are straightforward. Real estate, business interests, and collectibles usually need a professional appraisal. You file the inventory with the probate court, and in most states the beneficiaries are entitled to see it.
Notifying Creditors and Paying Debts in the Right Order
You have a legal obligation to notify the deceased person’s creditors that the estate is in probate. This means mailing direct notices to known creditors and publishing a notice in a local newspaper for anyone you might not know about.4Justia. Sending Notices of Death and Related Probate Laws and Procedures
The published notice names the deceased person, the case number, the representative, a deadline for submitting claims, and the court’s contact information. Most states require the notice to run for two or three consecutive weeks. Once the claims deadline passes (typically 30 to 90 days depending on the state), creditors who missed the window generally lose the right to collect.
You review each claim as it comes in. Legitimate debts get paid from estate funds. Questionable claims can be rejected, and the creditor can then take it to the court. When the estate does not have enough to cover every debt, you must follow a priority order set by state law. The general pattern across most states puts estate administration costs first, then funeral expenses, then federal and state taxes, then medical bills from the final illness, and finally general unsecured debts like credit cards. Paying out of order can expose you personally, so this is an area where professional guidance is worth the cost.
One point that relieves many family members: heirs are almost never personally responsible for the deceased person’s debts. If the estate cannot pay everyone, creditors simply do not get paid in full. The exception is any debt you co-signed or jointly held.
Handling Taxes
Tax compliance is the technical heart of estate administration, and it is where mistakes cost the most. You are personally on the hook if you distribute assets to beneficiaries before paying taxes owed. There are several distinct filings.
The Deceased Person’s Final Income Tax Return
File a final Form 1040 covering January 1 through the date of death. It reports wages, investment income, and retirement distributions the person received while alive. It is due on the normal April 15 deadline for the year of death. A refund becomes an estate asset; a balance owed becomes an estate debt.
Estate Income Tax
The estate itself is a taxpayer. If estate assets produce more than $600 in gross income during administration, you file Form 1041, the income tax return for estates and trusts.5Internal Revenue Service. Instructions for Form 1041 and Schedules A, B, G, J, and K-1 Rental income, dividends, interest, and capital gains from selling assets commonly trigger this.6Internal Revenue Service. File an Estate Tax Income Tax Return
To file Form 1041, the estate needs its own Employer Identification Number, which is free from the IRS website.7Internal Revenue Service. Information for Executors Use the EIN to open a dedicated estate bank account, kept entirely separate from personal accounts so the paper trail stays clean.
Federal Estate Tax
The federal estate tax applies only to estates above the basic exclusion amount, which for 2026 is $15,000,000 per individual. That threshold was set by legislation signed on July 4, 2025.8Internal Revenue Service. What’s New – Estate and Gift Tax Estates above the exclusion face graduated rates that top out at 40% on amounts more than $1,000,000 over the exclusion.9Office of the Law Revision Counsel. 26 USC 2001 – Imposition and Rate of Tax
The vast majority of estates fall well below this threshold and owe no federal estate tax. Some states impose their own estate or inheritance taxes with much lower exemptions, so check the rules where the deceased person lived.
Portability for Married Couples
When one spouse dies without using their full estate tax exclusion, the survivor can claim the leftover amount, but only if the deceased spouse’s estate files Form 706 and elects portability. It is not automatic. The return is due within nine months of death, though extensions are available.10Internal Revenue Service. Form 706 – United States Estate (and Generation-Skipping Transfer) Tax Return Missing this filing is one of the most expensive mistakes in estate planning, because the unused exclusion simply disappears. Filing Form 706 solely to preserve portability is often worthwhile even when the estate clearly owes no estate tax.
Date-of-Death Values for the Step-Up in Basis
Inherited assets get a new tax basis equal to their fair market value on the date of death.11Office of the Law Revision Counsel. 26 USC 1014 – Basis of Property Acquired From a Decedent Document those values carefully for every significant asset, because beneficiaries will need them when they eventually sell.12Internal Revenue Service. Gifts and Inheritances
Distributing Assets and Closing the Estate
Once debts are paid, tax returns are filed, and any disputes are resolved, you can distribute what remains. A valid will controls who gets what. If there is no will, state intestacy law dictates the order, typically starting with the surviving spouse and children.
Before handing over assets, get a signed receipt and release from each beneficiary. The document does two things: it confirms the beneficiary received their share, and it releases you from further liability related to the estate. Once every beneficiary has signed, file a final accounting with the probate court showing income received, debts paid, expenses incurred, and distributions made.
The court reviews the accounting and, if everything is in order, formally closes the estate. Your duties and legal exposure end at that point. Representatives who skip the receipt-and-release step sometimes hear from beneficiaries months later claiming they were shortchanged, so the paperwork earns its keep. For a complex estate or one where the beneficiaries do not get along, working with a probate attorney through the final distribution is the most reliable way to avoid trouble at the finish line.