Dealing with the tragic death of a loved one is never a pleasant experience for anybody. However, one of the realities of this event is the need to ensure that a person’s estate is closed smoothly, all debts are secured and any profits are forwarded to individuals listed as dependents of the deceased. Many people undertake the closing of an estate with trepidation, however, there are a few easy steps that when followed, allows an estate to close with as little trouble as possible.
Step #1 – Clearly identify the executor of the Estate
The first thing which needs to be clearly understood by all parties involved in any estate closure is who the executor of the estate is from the beginning. This identifies this responsible party to all ensure the process is handled from start to finish. 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 This should only be completed with funds being deposited and withdrawn through a single estate checking account.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 and debtors and close 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 arrive with the closure of these accounts.
Step #4 – Begin the liquidation of assets
One of the most stressful parts of closing an estate is 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. It is always suggested that anybody who is getting ready to liquidate assets which are not documented as being directly given to specific parties makes a list of all assets and whether or not there are debts outstanding on this property.
One of the biggest areas where this is applicable is a home property owned by the deceased. And this is usually the biggest hassle and struggle that any executor of the estate must deal with.
When you’re getting ready to sell a property, there are a few things you need to be cautious about.
- Make sure that any estate fees – including taxes, legal fees and other costs are always covered by the sale of this property prior to distributing any profits. This is usually where many executors get into financial trouble.
- Ensure that you come up with an effective plan for selling this property quickly. When you’re closing an estate, the last thing you need to worry about is a troubled home sales market.
If you are in this situation, a great way to reduce the stress of selling the property through traditional methods and ensure the estate is closed as quickly as possible is to work with a company like Big State Home Buyers. They have the experience in helping people who are in the same situation you are currently facing. Contact the team at Big State today by calling to learn how they can make the estate closure process much smoother for you and all parties involved.