Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in Oklahoma for guidance on your specific situation.
Detailed Answer
1. Identify and Value All Estate Assets
Begin by compiling a complete inventory of the decedent’s assets on the date of death. This includes:
- Real property (homes, land)
- Bank and investment accounts
- Retirement accounts and life insurance proceeds
- Personal property (vehicles, jewelry, collectibles)
Obtain formal appraisals where market value is uncertain. The total of these figures equals the gross estate value.
2. Calculate and Pay Administrative Costs and Debts
Under Oklahoma law, the personal representative must pay administrative expenses first, including probate court fees, funeral costs and attorney fees. Next, valid creditor claims are satisfied in priority order. See 58 O.S. § 339 (payment of expenses and claims) (link).
Key categories of debts and costs:
- Probate filing and service fees
- Attorney and accountant fees
- Funeral and burial expenses
- Outstanding mortgages, loans, credit card balances
- Final income, estate and property taxes
3. Determine the Residuary Estate
After paying all approved expenses and debts, the remaining pool of assets is called the residuary estate. Oklahoma law directs distribution of this balance to beneficiaries named in the will, or under the laws of intestacy if there is no valid will. See 58 O.S. § 341 (distribution of residuary estate) (link).
4. Perform the Final Reconciliation
- Start with gross estate value.
- Subtract total administrative and creditor payments.
- The result equals the assets remaining for distribution.
Document every transaction and maintain receipts. This accounting ensures transparency and compliance with probate court requirements.
Helpful Hints
- Maintain a centralized folder (digital or physical) with asset valuations and payment records.
- Obtain deadlines for filing creditor claims under 58 O.S. § 331 to avoid unexpected obligations.
- Consider bonding or insurance for the personal representative to protect against liability.
- Use probate accounting software or work with a probate clerk to track disbursements accurately.
- Review beneficiary designations on retirement and life insurance policies separately—they often pass outside of probate.