Disclaimer: This article is for general informational purposes only and does not constitute legal advice. For guidance on your specific situation, consult a qualified Indiana probate attorney.
Detailed Answer
1. Inventory and Appraisal of Estate Assets
First, gather all assets owned by the decedent at death. This includes real estate, bank accounts, investments, personal property, and digital assets. File an Inventory and Appraisal with the probate court within 60 days of appointment as executor or administrator. See Indiana Code § 29-1-5 (IC 29-1-5).
2. Identify and Classify Debts and Fees
List valid debts and administrative expenses. Debts can include funeral costs, medical bills, taxes, creditor claims, and court costs. Administrative fees cover executor commission, attorney fees, appraisal costs, and court filing fees.
3. Apply Indiana’s Statutory Order of Priority
Indiana law dictates the sequence for paying claims. Follow the priority rules in Indiana Code § 29-1-14 (IC 29-1-14):
- Funeral expenses and last illness medical expenses
- Administration expenses (court costs, executor commissions, attorney fees)
- Family allowance and homestead allowance
- Child support and spousal support arrearages
- Claims for debts and taxes
- All other claims
4. Pay Claims in Priority Order
After collecting assets and validating claims, pay each category in sequence. If estate assets are insufficient to cover all claims, pay each class pro rata. Maintain detailed records of all distributions.
5. Determine the Residual Estate
Once debts and fees are paid, the remaining property forms the residuary estate. Distribute these assets according to the will’s residuary clause. If there is no will, follow Indiana’s intestacy statutes at IC 29-1-2 et seq. (see IC 29-1-6).
6. Final Accounting and Court Approval
Prepare a final accounting summarizing all receipts, disbursements, and distributions. File this report with the court. Once approved, you may distribute the residuary estate.
Helpful Hints
- Keep meticulous records of all transactions and communications.
- Get creditor claims in writing and verify balances close to payment date.
- Obtain court approval before major disbursements to avoid personal liability.
- Consider professional appraisals for real estate and high-value personal property.
- Consult with a probate attorney early to clarify deadlines and filing requirements.