Detailed Answer
When an individual passes away in Alaska, their estate must first settle outstanding debts and administration costs before any assets pass to beneficiaries. Under Alaska’s probate laws, the “estate” generally includes assets titled solely in the decedent’s name, such as real property, bank accounts, personal belongings and investments. Non-probate assets—like life insurance proceeds with a named beneficiary or a joint tenancy home—pass outside probate and aren’t counted in this calculation.
1. Identify and Gather Estate Assets
The personal representative (formerly “executor”) must locate all probate assets. Typical assets include:
- Real estate held in the decedent’s name
- Bank and brokerage accounts solely in the decedent’s name
- Personal property (vehicles, jewelry, furniture)
- Stock certificates or investment accounts
- Digital assets (cryptocurrency, online accounts)
2. Value Assets as of Date of Death
Alaska Statute § 13.16.200 requires the personal representative to file an inventory and appraisal within four months of appointment. Valuations use fair market value at the decedent’s date of death: a real estate appraisal, bank statements, and dealer valuations for personal property.
3. Identify and Pay Debts, Taxes & Fees
Creditors have four months after public notice to file claims. The estate pays valid claims in this order (Alaska Stat. § 13.16.070):
- Administrative expenses (court and filing fees)
- Funeral and last illness expenses
- Taxes (estate, income, property)
- Other debts (credit cards, mortgages, loans)
4. Calculate the Net Estate
Subtract total debts and fees from the gross value of probate assets. The remainder is the net estate available for distribution under the will or Alaska’s intestacy rules. For example:
- House: $200,000
- Bank accounts: $50,000
- Personal property: $10,000
- Total gross estate: $260,000
- Mortgage balance: –$100,000
- Funeral expenses: –$5,000
- Attorney and court fees: –$2,000
- Net estate: $153,000
Helpful Hints
- Start the creditor notice process immediately to limit claims.
- Keep detailed records of all payments and valuations.
- Check for homestead or spousal allowances that may protect certain assets (Alaska Stat. § 13.16.142).
- Review beneficiary designations to identify non-probate assets.
- Consult a probate attorney for complex estates or contested claims.
Disclaimer: This article provides general information under Alaska law and is not legal advice. You should consult a qualified attorney to discuss your specific situation.