Settling an estate in the USA involves a series of essential steps, from obtaining initial documentation to distributing assets to beneficiaries. The process can be complex, as laws and requirements vary by state. This guide covers the general steps to settle an estate and provides a state-specific table to clarify requirements across jurisdictions.
Gather Initial Documentation
The first step in estate settlement is obtaining essential documentation, starting with the death certificate. Typically issued by the state’s vital records office, the death certificate is necessary for many actions, including transferring assets and closing accounts.
If there is a will, locate it promptly. The will often names an executor who is responsible for overseeing the estate settlement. In cases where there is no will, the court will appoint an administrator based on state intestacy laws, which determine how assets are distributed.
Identify the Executor or Estate Administrator
If a will is in place, it usually names an executor who will manage the estate according to the deceased’s wishes. If no executor is named or if there’s no will, the court will appoint an administrator. The requirements for executor eligibility vary by state, with many states requiring the executor to be a U.S. resident without a criminal record.
Secure and Assess Estate Assets
The executor’s next step is to identify and secure estate assets, which may include real estate, financial accounts, vehicles, and valuables. Each type of asset requires specific documentation to prove ownership, such as titles, deeds, or account statements. This step ensures that all assets are accounted for before distribution.
Apply for Probate or Administration of the Estate
Probate is often required to validate the will and authorize the executor to act on behalf of the estate. This legal process varies by state, with different fee structures and filing requirements. Some states offer simplified or expedited probate for small estates under a certain value threshold.
Notify Creditors and Settle Debts
Once probate is initiated, the executor should notify any known creditors and settle outstanding debts using estate assets. Many states require a public notice to creditors, providing them with a set period to make claims. The estate is liable for the deceased’s debts, so all claims should be resolved before distributing assets.
File Taxes for the Deceased and the Estate
Executors are responsible for filing a final income tax return for the deceased. They may also need to file an estate tax return, depending on the estate’s value and whether the state has its own estate tax. The IRS provides a federal estate tax exemption, but several states impose their own estate or inheritance taxes.
A clearance certificate from the IRS is recommended before distributing assets, confirming that all federal tax obligations are met and protecting the executor from future liability.
Distribute the Estate to Beneficiaries
After settling debts and taxes, the executor can distribute the remaining assets to beneficiaries as specified in the will or according to state intestacy laws if there is no will. The distribution may include transferring real estate, liquidating accounts, or distributing items of personal or sentimental value.
Close the Estate
To close the estate, the executor must file final reports and obtain any necessary court approvals. This often includes a final accounting to beneficiaries and the court to verify that all distributions were made in accordance with the law.
State-Specific Considerations
Estate laws vary widely across the United States, with each state having specific probate fees, executor requirements, and simplified probate options. Below is a table summarizing key state-specific requirements to help executors navigate their responsibilities efficiently.
This information is provided as a guideline, however it is recommended you check accuracy with a legal advisor in your state.
| State | Probate Fees | Executor Eligibility | Small Estate Threshold |
|---|---|---|---|
| Alabama | 2-5% of estate value | Must be 18+, no felony convictions | $30,000 for small estate affidavits |
| Alaska | Reasonable compensation, approved by court | Must be 18+, resident preferred | $100,000 for summary probate |
| Arizona | $25–$300 filing fees | Must be 18+ and competent | $75,000 personal; $100,000 real property |
| Arkansas | Reasonable fees | No state residency required | $100,000 small estate affidavit limit |
| California | Sliding scale (4% first $100K, etc.) | 18+, not legally incapacitated | $184,500 personal property |
| Colorado | Reasonable fees | 18+, Colorado resident preferred | $70,000 for personal property |
| Connecticut | $150+ based on estate value | 18+, Connecticut resident preferred | $40,000 for small estate affidavits |
| Delaware | 1.75% filing fee, probate attorney advised | 18+, no specific requirements | $30,000 small estate threshold |
| Florida | 3% of estate value | 18+, no felony conviction | $75,000 threshold for summary probate |
| Georgia | Sliding scale, filing fees vary | 18+, competent individual | $10,000 small estate threshold |
| Hawaii | Flat fees, plus 0.5% court fee on estate | 18+, resident preferred | $100,000 personal property |
| Idaho | Reasonable fees | 18+, Idaho resident preferred | $100,000 or 60-day wait period |
| Illinois | Reasonable fees, capped at 6% | 18+, no restrictions | $100,000 for small estate affidavit |
| Indiana | Court-determined reasonable fees | 18+, Indiana resident preferred | $50,000 for small estate affidavits |
| Iowa | Capped at 6% for first $1,000; then 2-4% | 18+, no restrictions | $25,000 for small estate |
| Kansas | Reasonable fees | 18+, Kansas resident preferred | $40,000 small estate threshold |
| Kentucky | 5% maximum, court approved | 18+, no felony conviction | $15,000 for simplified estate process |
| Louisiana | 2.5% standard, reasonable if not stated | Must be 18+, no specific requirements | Varies, simplified affidavits allowed |
| Maine | Reasonable compensation | 18+, state resident preferred | $40,000 small estate affidavit |
| Maryland | 9% on first $20,000, then 3.6% | 18+, no restrictions | $50,000 or $100,000 with spouse |
| Massachusetts | Reasonable compensation | Must be 18+ | $25,000 + vehicle for small estate |
| Michigan | Reasonable, court-validated fees | 18+, Michigan resident preferred | $25,000 personal property |
| Minnesota | Fees vary, approved by court | 18+, no restrictions | $75,000 small estate threshold |
| Mississippi | Reasonable compensation | 18+, resident preferred | $75,000 for affidavits |
| Missouri | Reasonable fees | 18+, resident preferred | $40,000 simplified probate |
| Montana | Sliding scale starting at 3% of estate value | 18+, no restrictions | $50,000 for simplified probate |
| Nebraska | Reasonable compensation | 18+, resident preferred | $50,000 threshold for small estates |
| Nevada | Sliding scale (4% on first $15K, etc.) | 18+, resident preferred | $100,000 for personal property |
| New Hampshire | Reasonable, based on complexity | 18+, no restrictions | $10,000 small estate threshold |
| New Jersey | 5% on first $200,000, sliding after | 18+, no restrictions | $20,000 small estate threshold |
| New Mexico | Reasonable compensation | 18+, resident preferred | $50,000 small estate limit |
| New York | 5% on first $100,000, scales down | 18+, resident preferred | $50,000 for small estate affidavits |
| North Carolina | Reasonable compensation | 18+, no felony conviction | $20,000 personal property |
| North Dakota | Reasonable fees | 18+, resident preferred | $50,000 simplified probate |
| Ohio | 4% on first $100K, scales down | 18+, no restrictions | $35,000 or $100,000 with spouse |
| Oklahoma | Sliding scale starting at 5% on first $1K | 18+, resident preferred | $50,000 small estate threshold |
| Oregon | 7% on first $1K, scales down | 18+, no restrictions | $75,000 personal; $200,000 real property |
| Pennsylvania | Reasonable compensation | 18+, resident preferred | $25,000 for personal property |
| Rhode Island | Reasonable compensation | 18+, resident preferred | $15,000 for simplified probate |
| South Carolina | Reasonable fees | 18+, no restrictions | $25,000 for small estate affidavits |
| South Dakota | Reasonable compensation | 18+, resident preferred | $50,000 for small estates |
| Tennessee | Reasonable fees | 18+, resident preferred | $50,000 threshold |
| Texas | 5% of money handled | 18+, no restrictions | $75,000 for small estate affidavits |
| Utah | Reasonable fees, court-approved | 18+, no felony record | $100,000 for simplified affidavits |
| Vermont | Reasonable, court-validated fees | 18+, resident preferred | $25,000 small estate threshold |
| Virginia | Reasonable fees | 18+, no restrictions | $50,000 simplified probate |
| Washington | Court-determined reasonable fees | 18+, Washington resident preferred | $100,000 simplified probate |
| West Virginia | Sliding scale, 5% on first $100K, etc. | 18+, resident preferred | $100,000 small estate threshold |
| Wisconsin | 2% flat rate | 18+, resident preferred | $50,000 for small estates |
| Wyoming | Sliding scale (10% on first $1K, etc.) | 18+, no restrictions | $200,000 personal property |
Questions?
Do you have questions about this or any other aspect of the funeral industry? Send us a question and our experts will do their best to help you. Click here.
