Settling an estate after a loved one's passing: A step-by-step guide.

Settling an estate is not just for the rich.

If a loved one passes away, it will be someone's responsibility to handle their debts and distribute their assets. If the deceased owned property or had financial accounts without designated beneficiaries, that person will need to handle the paperwork to transfer ownership.

Meredith Hill, an estate planning attorney and owner of The Hill Law Group in Bethesda, Maryland, stated that the word "estate" may be confusing for some.

While you might associate the term 'estate' with a wealthy individual residing in a grand mansion, owning a yacht, and frequently vacationing in the south of France, that's not entirely accurate. In reality, everyone possesses an estate.

After his father's death in 2019, Arya Akmal, a physics professor, had to settle an estate.

Although I was naive, I thought I'd give it a try. However, it turned out to be much more challenging than anticipated.

Akmal was named executor of his father's will, which was written 30 years before his death and never updated. Despite having a cousin named executor and a friend as a backup, neither was capable of carrying out the task when the time came.

Being recognized as executor

He was acknowledged as executor by the court and took stock of his father's assets.

Akmal stated that the process was intricate and not straightforward, and it was further complicated by the court closures due to the Covid-19 pandemic.

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A straightforward estate with limited assets may be settled in six months, but a complex financial scenario may require several years to resolve.

Family members who act as executors should recognize that fulfilling their loved one's wishes can be a significant responsibility, experts suggest. Julie Swerbinsky, an attorney with the Geller Law Group in Fairfax, Virginia, advises that executors should take a moment to understand their roles and responsibilities before jumping in. Swerbinsky recommends taking a deep breath and reaching out to someone for support before making any decisions.

Finding financial helpers

Contact advisors who may have worked with the deceased to gather more information about their assets.

Valerie Galinskaya, head of Merrill's Center for Family Wealth, stated that typically, a financial advisor, attorney, accountant, or insurance specialist would have some of the necessary information. If a family member has been proactive, the individual carrying out the responsibility will likely know this information. However, if they do not, those individuals can provide valuable insight.

Learning an executor’s responsibilities

Obtaining multiple copies of the death certificate, typically from a funeral home, is advised by experts to simplify the process of settling an estate, although it can still be challenging even with a plan in place.

Gather account documents and locate the will, as life insurance and financial accounts with named beneficiaries take precedence over a will.

The task of notifying and staying in touch with beneficiaries and interested parties, paying bills, closing accounts, and taking inventory of assets is time-consuming. Utilizing a checklist and maintaining detailed records can be beneficial.

Hill stated that the biggest mistake people make is underestimating the time required for the process and not comprehending its full length.

The executor must decide if any estate assets not covered by the will require probate. The executor should not distribute assets to beneficiaries until all debts and taxes have been settled.

Proper planning now can be a tremendous gift to your family and friends, saving them both financially and emotionally in the long run, as Hill stated.

"If you're unsure of what to do, it's best to wait until you're certain before taking any action," Akmal advised.

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