FAQ: Determining Remaining Assets in a Maine Estate After Paying Debts and Fees
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
1. Identify and Value Estate Assets
Once appointed, a personal representative must list every asset the decedent owned at death. This includes real estate, bank accounts, investments, personal property and business interests. Maine law requires the representative to file an inventory and appraisal within 60 days of appointment. The appraisal establishes each asset’s fair market value.
2. Provide Notice to Creditors and Approve Claims
The representative publishes a notice to creditors in compliance with 18-A M.R.S. §3-803. Creditors then file claims within the time set by the court. You review each claim, approve valid ones and pay them in full or in part. Unapproved or late claims generally lose priority.
3. Pay Administration Fees and Expenses
Next, you cover all estate administration costs. Common expenses include court filing fees, attorney or accountant fees, appraisal costs and personal representative compensation. Maine allows reasonable compensation under 18-A M.R.S. §3-301. You record and pay these expenses before distributing any remaining assets.
4. Calculate the Residual Estate
To find the residual estate, subtract the total of approved debts and administration expenses from the gross estate value. The formula is:
Residual Estate = Total Asset Value − (Allowed Claims + Administration Expenses)
The balance represents what remains for distribution. If the decedent left a valid will, you distribute the residue under its terms. Without a will, you follow Maine’s intestacy rules under 18-A M.R.S. §2-401.
Helpful Hints
- Start asset gathering immediately to avoid missing property.
- Keep detailed records of all expenses and payments.
- Meet all deadlines for inventory and creditor notices.
- Seek court approval before selling real property or large assets.
- Consult a probate attorney if you face complex claims or creditor disputes.