Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
Understanding Estate Administration in Wisconsin
When someone dies in Wisconsin, their estate enters probate under Chapter 851 of the Wisconsin Statutes. A personal representative gathers assets, pays debts, and distributes the remaining property. Estimating the net estate value helps you determine what heirs or beneficiaries will receive.
Step 1: Compile an Inventory of Estate Assets
The personal representative collects all property owned by the decedent at death. Common assets include:
- Real estate (homes, land)
- Bank and brokerage accounts
- Retirement accounts and life insurance proceeds not payable on death
- Personal property (vehicles, jewelry, art)
- Business interests
Under Wis. Stat. § 851.06, the personal representative must file an inventory with the court that lists each asset and its fair market value. (Wis. Stat. § 851.06)
Step 2: Identify and Validate Debts and Expenses
The estate must pay valid creditor claims and administration costs before distributing funds. Typical expenses include:
- Final medical bills and funeral expenses
- State and federal taxes (income, inheritance, estate taxes)
- Attorney and accountant fees
- Court costs for probate
- Outstanding consumer debts (credit cards, loans)
Creditors must file a claim within 4 months after the date of the personal representative’s appointment or within 60 days of receiving notice, whichever is later. (Wis. Stat. § 859.01)
Step 3: Pay Debts and Fees in Priority Order
Wisconsin law establishes a priority list for payment. The court pays expenses in this order:
- Funeral expenses and costs of last illness
- Administration expenses (court and personal representative fees)
- Reasonable attorney and accountant fees
- Secured debts (mortgages, liens)
- Unsecured debts (credit cards, medical bills)
- Taxes due (state and federal)
This priority follows Wis. Stat. § 861.01. (Wis. Stat. § 861.01)
Step 4: Calculate Net Estate Assets
Use a simple formula to determine what remains:
Net Estate Value = Total Asset Value – (Total Debts + Administration Costs)
For example, if assets total $500,000 and debts plus fees equal $150,000, the net estate value is $350,000. That amount remains available for distribution.
Step 5: Distribute Remaining Assets
Once you calculate the net value, the personal representative distributes assets according to:
- The decedent’s valid will
- State intestacy laws if no will exists (see Chapter 852 of the Wisconsin Statutes)
If a beneficiary challenges the distribution, they may petition the court to resolve disputes.
Helpful Hints
- Keep organized records of all financial accounts and valuables.
- Notify creditors promptly to avoid late claims under Wis. Stat. § 859.01.
- Obtain professional valuations for real estate and unique assets.
- Track all expenses related to estate administration.
- Consult a licensed attorney for complex estates or disputes.