Estate Administration Timeline

Administering an estate involves a structured sequence of legal, financial, and administrative tasks. Understanding the timeline helps executors and families prepare for what to expect and ensures compliance with legal deadlines. While specific requirements vary by state, most estates follow a similar progression.

Immediate Steps (Days 1-14)

The period immediately following death requires attention to practical and legal matters.

Days 1-3: Initial Actions

Obtain death certificates: Order at least 10-15 certified copies from the funeral home or vital records office. Banks, insurance companies, and government agencies require original certified copies, not photocopies. Typical cost is $10-25 per copy depending on the state.

Locate the will and trust documents: Check the decedent's files, safe deposit boxes (some states allow limited access before probate for this purpose), and with the estate planning attorney. If no will is found, the estate will be administered under intestacy laws.

Secure the residence and assets: Change locks if necessary, ensure adequate insurance coverage remains in effect, and safeguard valuables. Document the condition of the property with photographs.

Notify immediate contacts: Inform employer, close family members, and any dependents. Contact the post office to forward mail if the decedent lived alone.

Days 4-14: Financial and Administrative Notifications

Notify financial institutions: Contact banks, brokerage firms, and retirement plan administrators. Accounts will typically be restricted pending appointment of a personal representative.

Notify Social Security: Report the death to the Social Security Administration (800-772-1213). Any benefits received after the date of death must be returned.

Notify insurance companies: File claims for life insurance policies. Obtain claim forms and submit death certificates.

Secure digital assets: Identify email accounts, social media profiles, and online financial accounts. Document login credentials if accessible.

Contact the estate planning attorney: Schedule a meeting to review documents and discuss the probate process.

Probate Filing (Days 15-90)

Probate is the court-supervised process of validating a will, appointing a personal representative, and authorizing asset distribution.

Timing Requirements

Most states require probate to be initiated within 30-90 days of death, though this varies:

• California: No specific deadline, but delays can complicate administration
• New York: Must file within 30 days of locating the will
• Texas: No specific deadline, but petition should be filed within 4 years
• Florida: Must file within 10 days of learning of death if in possession of will

Documents Required for Probate Filing

• Original will (if one exists)
• Death certificate (certified copy)
• Petition for probate or administration
• List of heirs and beneficiaries with addresses
• Inventory of assets (preliminary estimate)
• Proposed personal representative's information

Court Proceedings

After filing, the court schedules a hearing (typically 2-4 weeks later) to:

• Validate the will (or confirm intestate status)
• Appoint the personal representative (executor)
• Issue Letters Testamentary or Letters of Administration

These letters grant the executor legal authority to act on behalf of the estate.

Costs

Probate costs vary by state and estate size:

• Court filing fees: $50-400
• Attorney fees: Flat fee, hourly, or percentage of estate (varies by state; California statutory fees range from 4% on first $100,000 to 1% on amounts over $1,000,000)
• Bond: May be required if the will does not waive it (typically 1-2% of estate value annually)

Creditor Notice Period (Months 2-8)

Estates must provide notice to potential creditors before distributing assets to beneficiaries.

Publication Requirements

The personal representative must publish a notice to creditors in a local newspaper, typically for 3-4 consecutive weeks. This publication starts the creditor claim period.

Claim Filing Deadlines

States set specific windows for creditors to file claims:

Known creditors must receive direct written notice in addition to publication. The personal representative should review the decedent's records to identify all potential creditors.

Handling Claims

For each claim filed:

1. Review for validity and accuracy
2. Verify the amount owed
3. Accept valid claims and pay from estate assets
4. Reject invalid or inflated claims in writing
5. Disputed claims may require court resolution

Assets generally cannot be distributed to beneficiaries until the creditor period expires and all valid claims are paid.

Tax Filings and Deadlines

Multiple tax returns may be required, each with specific deadlines.

Final Individual Income Tax Return (Form 1040)

Deadline: April 15 of the year following death (standard filing deadline)

This return covers income earned from January 1 through the date of death. The surviving spouse (if any) may file jointly for the year of death.

Estate Income Tax Return (Form 1041)

Deadline: April 15 of the year following the estate's fiscal year-end, or the 15th day of the 4th month after the fiscal year-end if the estate elects a fiscal year

Any income earned by estate assets after death (interest, dividends, rent) is reported on Form 1041. This return is required if the estate earns more than $600 in gross income.

Federal Estate Tax Return (Form 706)

Deadline: 9 months from the date of death

Extension: 6-month automatic extension available by filing Form 4768

Form 706 is required if the gross estate exceeds the federal exemption amount ($13,610,000 in 2024). Even if no tax is due, Form 706 must be filed to:

• Elect portability of the deceased spouse's unused exemption (DSUE)
• Report generation-skipping transfers
• Make certain tax elections

State Estate or Inheritance Tax Returns

States with estate taxes have their own deadlines, typically aligned with or within 30 days of the federal deadline. Requirements vary by state.

Asset Distribution (Months 9-18)

After debts are paid and tax matters resolved, assets can be distributed to beneficiaries.

Order of Distribution

Assets are distributed in a specific priority:

1. Administrative expenses (executor fees, attorney fees, court costs)
2. Funeral and burial expenses
3. Family allowances and exempt property (state-specific)
4. Federal and state tax obligations
5. Secured creditors
6. Unsecured creditors
7. Specific bequests (named items to named individuals)
8. General bequests (cash amounts)
9. Residuary estate (everything remaining)

Documentation Required

Before distribution, prepare:

• Final accounting of all receipts and disbursements
• Receipts from each beneficiary acknowledging distribution
• Release forms protecting the executor from future claims
• Court approval of final accounting (if required by the jurisdiction)

Closing the Estate

After all distributions are complete:

• File final accounting with the probate court
• Obtain court order closing the estate
• Distribute any remaining executor compensation
• Retain estate records for at least 7 years

Worked Example: 12-Month Timeline for $4M Taxable Estate

Facts:

• Eleanor dies on March 15, 2024
• Gross estate: $4,000,000
• Assets: $2,500,000 in investments, $800,000 residence, $400,000 retirement accounts, $300,000 personal property
• Valid will names daughter Catherine as executor
• Estate located in Massachusetts (state estate tax applies; exemption $1,000,000)
• Two adult children as equal beneficiaries
• Outstanding debts: $50,000 (mortgage paid off, credit cards, medical bills)

Month 1 (March 15 - April 15, 2024)

Week 1:

• Catherine obtains 15 certified death certificates ($250 total)
• Locates original will in Eleanor's safe deposit box
• Secures residence and notifies insurance company to maintain coverage
• Contacts estate planning attorney to schedule meeting

Week 2:

• Notifies Social Security and Eleanor's former employer
• Contacts each financial institution to report death and restrict accounts
• Begins inventory of assets

Weeks 3-4:

• Attorney prepares probate petition
• Catherine files petition with probate court (filing fee: $375)
• Court schedules hearing for April 20, 2024

Month 2 (April 15 - May 15, 2024)

April 20: Probate hearing; Catherine appointed executor; Letters Testamentary issued

April 22: Catherine opens estate bank account

April 25: Publishes creditor notice in local newspaper (runs 3 consecutive weeks)

April 30: Sends direct notice to all known creditors (credit card companies, hospital, utilities)

May 1: Files for Employer Identification Number (EIN) for the estate

Months 3-4 (May 15 - July 15, 2024)

• Retirement account beneficiary designations reviewed; accounts transfer directly to named beneficiaries outside probate ($400,000)
• Begins formal appraisal of residence and personal property
• Collects income earned by investment accounts
• Files Eleanor's final Massachusetts income tax return extension

Months 5-6 (July 15 - September 15, 2024)

• Creditor claim period expires (4 months from Letters in Massachusetts)
• Reviews and pays valid creditor claims ($50,000)
• Residence appraisal completed: $850,000 fair market value
• Personal property appraised: $280,000

Months 7-9 (September 15 - December 15, 2024)

September 30: Compiles final asset inventory for tax returns

November 1: CPA prepares draft of Form 706 and Massachusetts estate tax return

December 10: Files Form 706 extension (Form 4768) to extend deadline to March 15, 2025

December 15: Files Form 706 (9 months from death date)

• Gross estate: $4,030,000 (including appreciation)
• Federal estate tax: $0 (below $13,610,000 exemption)
• Elects portability (DSUE preserved for surviving spouse if Eleanor had been married)

December 15: Files Massachusetts estate tax return

• Massachusetts exemption: $1,000,000
• Taxable estate: $3,030,000
• Massachusetts estate tax due: Approximately $182,000 (graduated rates apply)

Months 10-12 (December 15, 2024 - March 15, 2025)

January 15, 2025: Pays Massachusetts estate tax ($182,000)

February 1: Prepares final accounting of estate

February 15: Files Eleanor's final Form 1040 for 2024 (income through March 15)

February 28: Obtains beneficiary acknowledgments and release forms

March 10: Files final estate accounting with probate court

March 15: Court approves final accounting; estate closed

Final Distribution to Each Child:

• Total estate: $4,030,000
• Less: Debts paid: $50,000
• Less: Massachusetts estate tax: $182,000
• Less: Administrative expenses (attorney, executor, appraisals): $85,000
• Net distributable estate: $3,713,000
• Each child receives: $1,856,500

Total administration time: 12 months

Checklist: Estate Administration Tasks

Immediate (Days 1-14):

• Obtain 10-15 certified death certificates
• Locate original will and trust documents
• Secure residence and personal property
• Notify Social Security, employer, and insurance companies
• Contact all financial institutions
• Schedule meeting with estate planning attorney

Probate Phase (Days 15-90):

• File probate petition with court
• Attend probate hearing and receive Letters Testamentary
• Open estate bank account with EIN
• Publish creditor notice in local newspaper
• Send direct notice to known creditors
• Begin asset inventory and appraisals

Administration Phase (Months 3-9):

• Review and process creditor claims after claim period expires
• Complete all asset appraisals
• Collect income earned by estate assets
• File decedent's final income tax return
• Prepare and file Form 706 (if required) by 9-month deadline
• File state estate or inheritance tax returns
• Pay all taxes due

Distribution Phase (Months 9-18):

• Prepare final accounting of all estate transactions
• Obtain receipts and releases from beneficiaries
• Make final distributions according to will or trust
• File final accounting with probate court
• Obtain court order closing the estate
• Retain estate records for at least 7 years