Estate Administration

Estate administration is the process of settling a person's financial affairs after death — paying debts, filing taxes, and distributing assets to heirs. It can take months. It doesn't have to be overwhelming if you understand how it works.

What probate is

Probate is the court-supervised process of validating a will and authorizing the executor to act on the estate's behalf. Not every estate needs to go through probate — but when it does, it provides legal clarity and protection for everyone involved.

Probate is handled in the county where the deceased lived at time of death. If they owned real estate in another state, a separate probate proceeding (called ancillary probate) may be required in that state as well.

What goes through probate — and what doesn't

Only assets owned solely in the deceased's name, without a beneficiary designation, go through probate. These pass outside of probate entirely:

• Assets with named beneficiaries (life insurance, retirement accounts, TOD accounts)
• Assets held in a living trust
• Jointly owned property with right of survivorship
• Bank accounts with a payable-on-death (POD) designation

For many people, especially those who planned ahead, the probate estate is small or nonexistent. For others — particularly if no estate planning was done — probate may be required for significant assets.

Small estate alternatives

Most states offer a simplified process for small estates that avoids full probate. Thresholds vary significantly by state — from $5,000 to $200,000 in gross estate value. These simplified processes include:

• Small estate affidavit — a sworn statement signed by the heir, presented to financial institutions to transfer assets without court involvement
• Summary administration — a streamlined court process for estates below the threshold

See the State Guide for your state's probate threshold and simplified procedures.

What the executor does

The executor (named in the will) or administrator (appointed by the court if there's no will) is responsible for:

1. Filing the will with the probate court and petitioning to open the estate
2. Notifying creditors (most states require published notice in a local newspaper)
3. Inventorying and appraising estate assets
4. Paying valid debts, expenses, and taxes from estate funds
5. Filing the deceased's final income tax return and, if required, an estate tax return
6. Distributing remaining assets to heirs according to the will (or state law if no will)
7. Closing the estate with the court

The executor has a fiduciary duty to the estate — they must act in the interests of the heirs, not themselves. Executors are typically entitled to reasonable compensation from the estate.

If there's no will

When someone dies without a will, they die "intestate." The court appoints an administrator and the estate is distributed according to the state's intestacy laws — typically a formula that prioritizes spouse, then children, then parents, then siblings, and so on.

Intestacy laws do not consider relationships, intentions, or circumstances. A long-term partner who was never legally married may receive nothing. A child from a prior relationship may receive an equal share. This is one of the strongest arguments for having even a basic will.

How long it takes

A straightforward probate typically takes 6–12 months. Complex estates — those with disputes, real estate in multiple states, business interests, or significant tax obligations — can take 2–3 years or more.

Factors that extend the timeline: creditor claim periods (typically 3–6 months from notice), disputes among heirs, real estate sales, and IRS processing of estate tax returns.

When you need an estate attorney

You may be able to administer a small, simple estate without an attorney. You likely need one if:

• The estate includes real estate
• The estate is large enough to owe estate taxes (federal threshold is $13.6 million in 2024; some states have lower thresholds)
• There are disputes among heirs or creditors
• The will is being contested
• There is no will and the estate is not straightforward
• The deceased had business interests
• You feel out of your depth — which is a perfectly reasonable position

Estate attorneys typically charge either a flat fee, an hourly rate, or a percentage of the estate value. Ask for a clear fee structure before engaging anyone.