Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
Under Delaware law, calculating the net assets of an estate requires three main steps: inventory and appraisal, claims allowance, and distribution of the residue.
1. Inventory and Appraisal
The personal representative must identify and value all probate assets, including real estate, bank accounts, investments, personal property and business interests. Under Delaware Code 12 Del. C. § 3914, the representative must file a detailed inventory with the Register of Wills. Assets not passing through probate—such as jointly held property with rights of survivorship or assets with designated beneficiaries—are excluded from the probate estate.
2. Allowance and Payment of Claims
Next, the representative must notify creditors and pay valid claims in priority order. Delaware Code 12 Del. C. § 2701 specifies this order:
- Costs of administration (filing fees, appraisal fees, publication costs)
- Funeral expenses
- Debts and taxes
- Judgments
Creditors generally have three months from the date of first publication of notice to file claims. The representative reviews each and either allows or objects to them under Delaware Code 12 Del. C. § 3904. Valid claims are paid from the estate’s liquid assets.
3. Calculating the Residue
After paying claims, taxes and the personal representative’s commission—set by statute at a reasonable percentage under 12 Del. C. § 3913—the remaining property constitutes the residue. The residue passes to the beneficiaries under the will or, if there is no will, under Delaware’s intestacy rules (12 Del. C. § 1033).
Helpful Hints
- Begin with a comprehensive asset list: real estate deeds, account statements and titles.
- Obtain professional appraisals for real property and collectibles.
- Publish a notice to creditors in a local newspaper to limit unknown claims.
- Keep detailed records of all payments and filings with the Register of Wills.
- Consult probate fee schedules at the Delaware Courts website to estimate costs.
- Review beneficiary designations early—some assets avoid probate entirely.