Disclaimer: This article provides general information and is not legal advice. Contact a qualified attorney for advice tailored to your situation.
Detailed Answer
When administering an estate in Virginia, you must determine the net assets available after paying all debts, taxes, and fees. Follow these steps:
1. Compile and value estate assets
Identify all assets owned by the decedent at death, including real property, bank accounts, investments, personal property, and digital assets. Obtain appraisals or statements to establish fair market value as of the date of death.
2. File inventory and appraisal
The executor or administrator must file an inventory and appraisal with the probate court under § 64.2-610. This document lists each asset and its value.
3. Identify and pay valid claims
Present all claims against the estate. Creditors have four months from the date of qualification to submit claims under § 64.2-530. Pay in order of priority:
- Funeral expenses and certified costs of administration
- Family allowance and priority claims (e.g., medical expenses, taxes)
- Secured debts (e.g., mortgages)
- Unsecured debts
4. Deduct taxes and fees
Calculate and pay any estate and inheritance taxes owed at the federal and state levels. Also pay court costs and attorney or fiduciary fees approved by the court.
5. Determine remaining assets
Subtract the total of debts, taxes, fees, and expenses from the gross estate value. The resulting amount represents the net estate. This net estate is ready for distribution to beneficiaries according to the will or Virginia’s intestacy laws.
Helpful Hints
- Keep detailed records of appraisals, receipts, and payments.
- Meet all filing deadlines to avoid personal liability.
- Notify known creditors promptly to limit estate exposure.
- Consider hiring a professional appraiser for complex assets.
- Review the will carefully for specific bequests and conditions.