When someone you love dies, the administrative and legal tasks that follow can feel overwhelming — especially while you're grieving. Handling an estate doesn't require a law degree, but it does require steady, organized action taken in roughly the right order. This guide walks you through what to do with an estate when someone dies, from the first 24 hours through the final distribution of assets.
This article is general information, not legal or financial advice. Estate law varies significantly by state. For anything complex or contested, consult a licensed probate attorney in your state.
First: Understand What an "Estate" Actually Means
A person's estate is everything they owned at the time of death — bank accounts, real estate, investments, personal property, digital accounts, and debts. Settling an estate means collecting those assets, paying what's owed, and distributing what remains to the rightful heirs. The process is governed by the deceased person's will (if they had one) and by state probate law.
The person legally responsible for this work is the executor (named in the will) or an administrator (appointed by the court when there is no will). If you've been named executor or are stepping into that role, our guide on what an executor of an estate does is a good companion to this article.
The First 48–72 Hours: Immediate Priorities
Before anything administrative, take care of the immediate practicalities.
- Secure the death certificate. You will need certified copies — often 10 or more — for banks, insurers, courts, and government agencies. The funeral home typically orders these on your behalf. See our guide on how to get a death certificate for details on timing and cost.
- Locate the will. Check the deceased's home files, a fireproof safe, a safe-deposit box, or with their attorney. If you can't find it, read our guide on how to find a will after someone dies.
- Secure physical property. Lock the home, garage, and vehicles. If the deceased lived alone, change the locks if necessary to prevent unauthorized entry or removal of belongings.
- Notify key parties. Contact the deceased's employer, Social Security Administration, any pension administrators, and the post office to forward or hold mail. Our guide on stopping mail after death covers this in detail.
- Arrange for dependents and pets. If the deceased was caring for minor children, an elderly parent, or pets, arrange for their immediate care.
Opening Probate (When Required)
Probate is the court-supervised process of validating the will and overseeing distribution of assets. Not every estate needs it, but most estates with solely-owned real estate or significant bank accounts do.
How to Open Probate
- File the will (and a death certificate) with the probate court in the county where the deceased lived.
- Petition the court to be appointed executor or administrator. Filing fees typically range from $50 to $400 depending on the state.
- Receive Letters Testamentary (or Letters of Administration) — the official court document giving you legal authority to act on behalf of the estate. Banks and brokerages will require this document before releasing funds. Learn more in our guide on what Letters Testamentary are.
Small Estate Shortcuts
If the estate is modest, many states offer an expedited process. A small estate affidavit lets heirs claim assets without full probate when the total value falls below a threshold — which ranges from $20,000 to $184,500 depending on the state. Ask the probate court clerk whether the estate qualifies.
Taking Inventory of the Estate
Within the first few weeks, create a complete inventory of everything the deceased owned and owed. This is a legal requirement in most probate proceedings and an essential management tool even when probate isn't required.
| Asset Category | What to Look For | Passes Through Probate? |
|---|---|---|
| Bank & brokerage accounts | Statements, online logins, safe-deposit boxes | Only if no POD/TOD designation |
| Real estate | Deeds, mortgage statements, property tax records | Usually yes, unless held in trust or joint tenancy |
| Retirement accounts (IRA, 401k) | Account statements, beneficiary forms | No — transfers directly to named beneficiary |
| Life insurance | Policy documents, employer benefits | No — transfers directly to named beneficiary |
| Vehicles | Titles, registration documents | Usually yes, unless jointly titled |
| Personal property | Jewelry, art, collectibles, furniture | Yes, if not specifically addressed in trust |
| Digital assets | Crypto, online accounts, domain names | Varies — see your state's RUFADAA laws |
Our settling an estate checklist gives you a printable version of this inventory process.
Opening an Estate Bank Account
Open a dedicated estate checking account using your Letters Testamentary. All estate income (rent from inherited property, final paychecks, refunds) and expenses (funeral costs, utility bills, attorney fees) should flow through this account. Never commingle estate funds with your personal money — doing so can expose you to personal liability.
Notifying Creditors and Paying Debts
Most states require the executor to publish a notice to creditors in a local newspaper. This starts a clock — usually 3 to 6 months — during which creditors can file claims against the estate.
- Review all claims carefully. Not every bill submitted is valid or legally enforceable against the estate.
- Pay debts in the priority order your state law requires. Generally: funeral expenses, taxes, and secured debts come first.
- Do not distribute assets to heirs before paying valid debts — as executor, you can be held personally responsible for premature distributions.
For more on what happens to specific obligations, see our guides on what happens to debt when you die and what happens to a mortgage when you die.
Filing Final Tax Returns
The executor is responsible for filing:
- The deceased's final federal income tax return (Form 1040), due April 15 of the year following death.
- An estate income tax return (Form 1041) if the estate earns more than $600 during administration.
- A federal estate tax return (Form 706) only if the estate exceeds the federal exemption — $13.61 million per individual in 2024. Most estates owe no federal estate tax. Some states have lower thresholds; check your state's rules.
Distributing Assets to Heirs
Once debts, taxes, and administrative expenses are paid, you can distribute what remains according to the will — or, if there was no will, according to your state's intestate succession laws.
- Get signed receipts from every beneficiary acknowledging what they received.
- For real estate, you'll need to record a new deed in the county recorder's office to transfer title.
- For inherited retirement accounts, beneficiaries must follow specific IRS rules on withdrawals. Our guide on inherited IRA rules explains the timelines.
Closing the Estate
Once all assets are distributed, file a final accounting with the probate court showing every dollar that came in and went out. The court will review and issue an order officially closing the estate, which releases you from your duties as executor. Keep copies of all estate records for at least 7 years after closing in case of future tax questions or disputes.