Disclaimer: This article is for educational purposes only. It does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
1. Identify Probate Estate Assets
Probate estate assets include real property, personal property, bank accounts, stocks, and business interests owned solely by the decedent. Non-probate transfers such as life insurance proceeds, retirement accounts with named beneficiaries, and jointly held property pass outside probate and generally are not included.
2. File Inventory and Appraisal
The personal representative (executor or administrator) must file an inventory and appraisal of probate assets within 90 days of appointment. This inventory lists each asset and its fair market value as of the date of death. See NDCC §30.1-21.1-07 for statutory requirements.
3. Notify Creditors and Settle Debts
North Dakota law requires publishing a notice to creditors and mailing direct notice to known creditors. Creditors then have four months from first publication to file claims. After the deadline, the representative reviews each claim, allowing valid ones and disputing unsupported or inflated claims. See NDCC §30.1-17-02.
4. Pay Debts, Taxes, and Fees
The representative uses estate assets to pay approved creditor claims, funeral expenses, administration costs, and federal and state estate or income taxes. Executor and attorney fees must be reasonable and often require court approval. See NDCC Ch. 30.1-23 for fee guidelines.
5. Calculate Net Estate and Distribute Assets
Subtract total liabilities (debts, taxes, fees) from the gross probate estate value. The remainder is the net estate. The representative distributes these assets according to the will’s terms or, if there is no will, under North Dakota’s intestacy rules. See NDCC Ch. 30.1-22.
Helpful Hints
- Keep detailed records of valuations, creditor claims, and payments to maintain transparency.
- Obtain more than one appraisal for real property to ensure accurate market value.
- Consult accountants or professional fiduciaries for complex financial or business assets.
- Adhere strictly to statutory deadlines to avoid personal liability for missed claims or distributions.
- Use estate accounting software to track receipts, disbursements, and remaining balances in real time.