• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Potter Law Firm

North Carolina and Kentucky Estate Planning Attorneys

phone iconNC (704) 944-3245
KY (606) 324-5516
Attend A Free Seminar - KY Attend A Free Webinar - NC/SC THIS IS AN ADVERTISEMENT

  • Home
  • About Us
    • About Our Firm
    • Attorney and Staff Profiles
  • Practice Areas
    • Asset Protection & Business Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Family-Owned Businesses & Farms
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Guardianship & Conservatorship
    • Hospice Care
    • Medicaid Planning
    • Nursing Home Planning
    • Veterans Benefits
  • Communities We Serve
    • Kentucky
      • Boyd County
        • Ashland
        • Florence
      • Kenton County
        • Covington
        • Fort Mitchell
        • Independence
    • North Carolina
      • Mecklenburg County
        • Charlotte
        • Davidson
        • Huntersville
  • Resources
    • Definitions
    • DocuBank
    • Elder Law
      • Elder Law Links
      • Elder Law Reports
      • Local Elder Law Resources
        • Ashland Elder Resources
        • Covington Senior Resources
        • Huntersville Elder Law Resources
        • Independence Senior Resources
    • Elder Law Reports
    • Emergency Legal Documents
    • Free Estate Planning Seminars
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate Planning
      • Frequently Asked Questions for Families Without an Estate Plan
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Trust Administration & Probate
    • Is Your Estate Plan Outdated?
    • Kentucky Probate Resources
      • Ashland, Kentucky Probate Resources
    • Newsletters
    • North Carolina Probate Resources
      • Huntersville, NC Probate Resources
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Elder Law Reports
      • Estate Planning for Niches
      • Trust Administration
  • Contact Us
  • BLOG
Home » Estate Planning » How Is an Estate Settled During Probate?

How Is an Estate Settled During Probate?

June 2, 2021 by John Potter

probateIf you are named as the executor of an estate, there are specific things that must be done after the passing of the decedent during the administration process. This would also apply to a family member that has to sort out an uncertain situation after the death of a relative.

In this post, we will provide a basic overview of the steps you would take if you are in this position.

Ground Zero

Assuming you are an executor, at the beginning of the process, you start to assemble the documents that you will need to go forward. Obviously, the will itself will be the most important one, and should know exactly where to find it if you have discussed things with the decedent.

Open the Estate With the Court

The first order of business is to formally open the estate with the probate court. You present the will, and the court will typically hold a brief hearing during which you will be empowered to administer the estate.

If there is no will at all, someone representing the decedent would apply to the court to open the estate, and the court would appoint a personal representative to act as the administrator. This can be the petitioner, but the court will typically empower the closest relative.

Conduct an Asset Inventory

The executor will inventory the assets that comprise the estate and compile all of the ownership documents.

A well-constructed estate plan may include a letter of last instructions. This would be a letter from the testator to the executor to give them the information that they need to administer the estate. The inventory process is simplified if there is a roadmap of sorts to follow.

Valuate the Assets

You have to place a value on the assets that will comprise the estate. This can involve professional appraisals to place a number on collectibles, jewelry, etc.

Take Care of Tax Responsibilities

When you are administering the estate, you have to get a tax identification number from the IRS and establish a bank account for the estate. This is formally called an “employer identification number.”

For most estates, income taxes will be the only taxes that must be paid. However, there is a federal estate tax that is applicable on transfers that exceed the exclusion. At the time of this writing in 2021, the exclusion is $11.7 million.

Pay Other Bills and Estate Expenses

Other final debts will be paid during the probate process. These would include debts that were incurred by the decedent while they were living, and the estate will also have expenses to pay, such as legal fees, appraisal costs, and accounting charges.

Distribute Inheritances

When all the administrative tasks are completed, the executor will be able to distribute the assets to the inheritors in accordance with the stated wishes of the decedent.

Probate Isn’t Always Necessary

We should point out that some types of asset transfers are not subject to probate. Individual retirement accounts are transferred outside of probate if they have named beneficiaries, and the transfer of assets to the beneficiary of a payable on death account would be probate-free.

The probate court would not be involved when a surviving joint tenant inherits property that is held in joint tenancy. Living trust distributions are transferred outside of probate as well.

We Are Here to Help!

There are many different ways to facilitate transfers to your heirs after you pass away. The ideal course of action will depend on the circumstances, and this is why legal counsel is invaluable.

We can gain an understanding of your situation and help you develop a plan that ideally suits your needs. If you are ready to get started, you can reach our Ashland, Kentucky estate planning office at 606-324-5516 and our Florence, Kentucky office at 859-372-6655.

The number in Charlotte, North Carolina or Huntersville, North Carolina is 704-944-3245, and you can use our contact form if you would rather send us a message.

 

  • Author
  • Recent Posts
John Potter
Latest posts by John Potter (see all)
  • What You Need to Know about the Medicaid Look-Back Rule - January 3, 2023
  • How to Pass Down Your Legacy in Your Estate Plan - October 3, 2022
  • Practical Steps to Take after Receiving a Terminal Diagnosis - September 30, 2022

Filed Under: Estate Planning Tagged With: Estate Administration, executor's role, Probate

Other Articles You May Find Useful

How to Gift to Your Grandchildren in Your Estate Plan
pour-over will
What Happens If I Leave Property Out of My Living Trust?
estate tax
2022 Estate Tax Exclusion Has Been Set
QTIP trust
How Can You Protect Your Children’s Inheritances If You Get Remarried?
probate
Are There Any Probate Shortcuts in North Carolina?
life estate
What Is the Purpose of a Life Estate?

Free Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
Texting Permission

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

Subscribe to Our Blog

  • This field is for validation purposes and should be left unchanged.

Testimonials

default image

Overall The Potter Firm was very professional. They took what could of been a very complicated process and were able to break it down so it was a lot easier to understand. We are confident we now have made the right decisions in our estate planning. Good firm to work with.

DKS & KMS Client Review August 28, 2020

default image

John Potter has been a real pleasure to work with. He is very knowledgeable and explains things in a very simplistic manner so the average person can understand how/why the laws are written. He is very attentive and asks questions in such a way that not only helps him understand your goals, but also helps you think about what type of goals and expectations you should be considering. Exemplary client service.

David J. Client Review August 28, 2020

default image

My husband and I selected Ms. Potter to assist with our small business. She responsive and attentive every time I have a question or need assistance, and is extremely knowledgeable and able to answer any legal question I have had. I know I can count on Ms. Potter for all of my business legal needs and I would highly recommend her to anyone needing legal assistance with such.

Jillian Client Review August 28, 2020

<< Prev
Next >>

Where We Are

Ashland

ASHLAND
1620 Carter Avenue
Ashland, KY 41101-7631
Phone: (606) 324-5516
Fax: (606) 324-4766

Charlotte

CHARLOTTE
15720 Brixham Hill Avenue
Suite 300,
Charlotte, NC 28277
Phone: (704) 944-3245

Huntersville

HUNTERSVILLE
11330 Vanstory Drive
Huntersville, NC 28078
Phone: (704) 944-3245

Northern Kentucky

NORTHERN KENTUCKY
7310 Turfway Road
Suite 550,
Florence, KY 41042
Phone: (859) 372-6655

Office Hours

Monday8:30 AM - 4:30 PM
Tuesday8:30 AM - 4:30 PM
Wednesday8:30 AM - 4:30 PM
Thursday8:30 AM - 4:30 PM
Friday8:30 AM - 3:00 PM

Map/Location

potter_sidbr_map
potter law logo
  • Facebook
  • Instagram
  • LinkedIn
  • RSS
  • Twitter
  • YouTube

The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. The information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

Privacy Policy | Terms of Service | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2023 American Academy of Estate Planning Attorneys, Inc. THIS IS AN ADVERTISEMENT