settling an estate

[ez]

I have a few questions regarding the settlement of an estate. How long does it usually take to settle a modest estate if there is no real estate to sell? In this case it has been over 13 months since the person was deceased, so just wondering. My relatives got their letters last january and they were told it took 7 months from the time they got their letters, so its been almost a year. Also, if stocks have been sold, and their were gains since the person died, I understand that is taxable...but my question is, it is all being cashed out before its dispersed so will they take that tax out before they disperse? Thanks I have no experience with this stuff whatsoever. Also my kids are getting trust funds and their uncle is incharge of them according to the will, but he wants no part of that, how does that get switched over and how expensive/time consuming will that be. Thanks!!!!!!!!!

 

[barkley]

even absent real estate it can take allot of time to settle a modest estate.

dh will likely have to settle one in the coming months and i suspect his family members will think it will be fairly quick to wrap up but i/we suspect otherwise.

one of the issues with an estate is settling all the debts, and i KNOW the issue with the one we will deal with is medical bills. the person has dual insurance which is almost identical to my own. with that issue alone it can take a YEAR or more to get each provider to figure out what their portion is, what they can get written off due to their individual contracts with providers and get the correct amount that needs to be paid. then, there's the issue with taxes, and if the person who passed did'nt keep good records that are organized and accessable it's a detective game on gathering information.

if there are trusts involved it can be more time consuming, depending on weather the trusts were established before the death (as in a living will) or if the instructions are to take whatever dollar amount or percentage of the final estate the minors would receive and create trusts.

the letters you received should give a contact number (law group or executor), someone might give a call and find out what the status is (with some wills they will issue a portion of the proceeds and then just hold back what is anticipated as needed to settle it, with others they wait until everything is settled so there's just one final accounting).

 

[LBAK]

My dad just passed away in October without a will and I am his only heir. I just received the Certificate of Administration and I started closing his acct.'s and putting stock in my name. I have to keep an estate acct. open for about 9 months until all debts have been settled. I do have to admit the lawyer told me it was probably this easy because my mom predeceased him and I am the only child. I also think it depends how backed up the system gets.Good luck with everything.

 

[BuzznBelle'smom]

It can go quicker or slower, it's tough to say. When you mentioned trusts, though--I suspect that would be a delaying factor. If there are assets that need to be sold, that can add time. As PP said, the estate has to settle all outstanding bills before all is distributed. The process taking a couple years is not unusual.

When my mom died, there wasn't a will (we thought there was, but couldn't find it). My sister went through a ton of effort to find all accounts and creditors. She was able to disperse some cash before settlement, if this is an issue for some, you could ask about this. In our case, she gave each sibling $2000 to cover their travel and funeral expenses (one brother came from Germany, for example, and needed short-notice plane tickets).

You really should be talking to an estate or trust attorney about the trust funds. I know I was the trustee for my nieces for a few years, then my MIL changed it to their paretns being trustees--I didn't have to do a thing. However, she set the trusts up, and was still alive, obviously, so it's a different circumstance. If your uncle isn't interested in being trustee, he can talk to the lawyer about getting it changed. The trustee doesn't have to "do" anything until it's time to disperse the trusts.

Sorry, that was all probably clear as mud. Really, you're best off talking to a lawyer involved. Even if it seems pricey, it'll save you in the long run.