Detailed Answer
When a person dies in New Hampshire, the appointed personal representative must settle the estate by collecting assets, paying legitimate debts and fees, and distributing what remains to heirs or beneficiaries. This process yields the net or residuary estate. Here’s how to determine what remains:
1. Inventory and Valuation of Estate Assets
Within 30 days of appointment, RSA 551:2 requires the personal representative to inventory all estate assets. This inventory should include:
- Real property (e.g., homes, land) with appraisals or tax assessments;
- Bank accounts, investments, and retirement accounts (statement balances as of the date of death);
- Personal property (vehicles, jewelry, collectibles) with fair market valuations;
- Digital assets or intangible property (domain names, cryptocurrencies).
2. Identifying and Paying Debts and Administrative Expenses
Under RSA 556:1, the representative must publish notice to creditors, giving them up to six months to file claims. Priority debts and expenses include:
- Funeral and burial expenses;
- Administration costs, including court filing fees (RSA 551:4);
- Attorney and accounting fees reasonably incurred;
- Taxes owed at the date of death, including state inheritance tax;
- Unsecured debts (credit cards, medical bills) after priority claims.
3. Calculating the Net Estate
Subtract total debts and expenses from the gross asset value. For example, if assets total $400,000 and debts and fees amount to $50,000, the net estate equals $350,000. This residuary estate passes to beneficiaries under the will or via New Hampshire’s intestacy laws (RSA 551:5).
4. Distribution of Remaining Assets
After debts and fees close, the representative follows the will’s terms or, absent a will, distributes assets per New Hampshire law. The representative then files a final accounting with the court for approval.
Disclaimer: This article provides general information only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.
Helpful Hints
- Keep detailed records and receipts for every transaction.
- Obtain professional valuations for real property and unique assets.
- Review all account statements as of the date of death to capture accurate balances.
- File creditor notices promptly to avoid personal liability for overlooked debts.
- Visit the New Hampshire Judiciary website for probate forms and guides.