Disclaimer: This article provides general information only and does not constitute legal advice. Always consult a qualified attorney in Virginia for legal guidance.
Detailed Answer
When someone passes away in Virginia, the personal representative (also called executor or administrator) takes charge of the decedent’s assets. Managing estate expenses and ongoing bills is a critical duty. Under Virginia law, the personal representative must use estate funds to pay valid debts, taxes, and administrative costs before distributing assets to heirs and beneficiaries. (See Va. Code § 64.2-607.)
Key steps include:
- Open an estate bank account. Keep all estate funds separate from personal assets.
- Identify and notify creditors. Publish a notice in a local newspaper and send direct notice to known creditors.
- Inventory assets. File a detailed list of estate property with the circuit court clerk.
- Settle ongoing bills. Use estate funds to pay mortgage, utilities, insurance, and other bills to preserve property value.
- Pay funeral and administrative expenses. Virginia law gives priority to these costs over most unsecured claims.
- File tax returns. File the decedent’s final income tax return and any required estate tax returns.
- Handle disputed claims. Allow creditors four months from the date the first published notice appears to file claims.
If estate assets are insufficient to cover all obligations, the personal representative distributes available funds according to the priority established in Virginia Code.
Helpful Hints
- Maintain a detailed ledger. Track every expense and payment related to the estate.
- Communicate with heirs. Provide regular updates on the probate timeline and expense status.
- Hire professionals when needed. Consider engaging an accountant for complex tax filings.
- Meet deadlines. Virginia courts set strict timelines for creditor notices and filings.
- Consider bond requirements. The court may require a surety bond to protect the estate against mismanagement.
- Seek local legal support. Probate procedures can vary slightly by circuit and county.