Disclaimer: This article is for educational purposes only and is not legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
When a person dies in Tennessee leaving multiple heirs, the personal representative (formerly executor) must gather, value, and distribute estate assets under Tennessee law. Below is a step-by-step overview:
1. Appointment of Personal Representative
The court issues Letters of Administration or Testamentary to authorize the personal representative to act. The representative must qualify by filing an oath and bond as required by the probate court.
2. Inventory and Appraisal
Within 90 days of qualification, the personal representative must file an inventory of all probate assets with the probate clerk. This inventory includes real property, bank accounts, investments, personal property, and business interests. Under T.C.A. § 30-2-306 (Inventory and Appraisement), the inventory must list each asset and its fair market value as of the date of death.
3. Notice to Creditors and Payment of Debts
After filing the inventory, the representative publishes notice to creditors and mails direct notice when required. Creditors then have a limited time to file claims. The representative reviews, approves, or rejects claims. State and federal taxes, funeral expenses, and administrative costs take priority and must be paid before distributing assets.
4. Final Accounting
Once debts and expenses are settled, the representative prepares a final accounting showing all receipts and disbursements. This accounting must be approved by the probate court before distribution.
5. Distribution to Heirs
Distribution follows the decedent’s will. If there is no valid will, intestate succession rules apply under T.C.A. § 31-1-101 (Intestate Succession). The personal representative transfers property to heirs proportionally. For example, if three heirs inherit equal shares of a $90,000 estate, each heir receives $30,000 after liquidation of assets or in-kind distribution with equal value.
Helpful Hints
- Keep detailed records of asset valuations and receipts for court review.
- Order a certified copy of the death certificate early to handle bank and title transfers.
- Communicate regularly with heirs to set expectations and avoid disputes.
- Consider hiring qualified appraisers for unique assets like artwork or collectibles.
- Consult an attorney if complex issues arise, such as creditor challenges or contested will provisions.