Do you need to know how to process an estate closure? Dealing with the tragic death of a loved one is never a pleasant experience for anybody.
However, one of the realities of this event involves ensuring:
- A person’s estate closes smoothly
- All debts become secured, and
- The forwarding of any profits for individuals listed as dependents of the deceased.
Many people undertake the closing of an estate with some worry. However, following a few steps allows for the smooth closing of an estate.
Step #1: Clearly Identify the Executor
The first step involves clearly identifying the executor of the estate. Ensure all parties understand this from the beginning.
Identifying the executor early on ensures a smoother estate-closing process from beginning until the end. This is also critical for other parties to realize that this individual was selected for a good reason by the deceased. It is important for all parties involved in an estate to allow the executor to complete this task with as little impact as possible.
Step #2: Open or Identify Estate Checking Accounts
Any estate closure needs to be documented with accurate records with receipts of income and debts paid. This should only be completed with funds being deposited and withdrawn through a single estate checking account. Traditionally when somebody sets up a Will, they also open this account and list the executor as an authorized power of attorney to act on behalf of the deceased.
Step #3: Notify All Creditors
The third step involves notifying all creditors and debtors of the need for closing all accounts.
After the estate has begun to close, it is vital to notify all creditors and debtors of the death of the individual involved in the estate. All debts that are owed need to be paid off as soon as possible. It is also critical to document all conversations with debtors and creditors to ensure no issues arise with the closure of these accounts.
Step #4: Begin The Liquidation Of Assets
One of the most stressful parts of closing an estate involves the liquidation of assets owned by the deceased. However, there are many steps to this individual process which need to follow precise instructions documented in the will.
When preparing for the liquidation of assets, list any items not directly documented for a specific person. Before distributing these items, make sure all outstanding debts for the property are paid first, then distribute the remaining assets.
This often occurs when the estate closing involves a home of someone deceased. Assessing outstanding debts and documenting unclaimed assets involves a huge hassle on the executor.
When preparing for the sale of the property, remain cautious of the following items.
- Pay all outstanding estate fees. Proceeds from an estate sale must pay all legal fees and costs associated with the estate closing before distributing profits. This is usually where many executors can get into financial trouble.
- Create a plan for selling the property quickly. When you’re closing an estate, the last thing you need to worry about is a troubled home sales market.
A popular way for reducing the stress of selling a property through the closing of an estate involves working with a company like Peak Real Estate Solutions. We have experience helping people in this situation.
Contact us today by calling and learning how we can help make estate closings easier for families and executors.