A family member's death is a difficult time. In addition to the emotional turmoil, there's a long list of practical things that need to be taken care of: closing accounts, paying debts, transferring property, filing paperwork with the court, and more. The estate settlement process can stretch on for a year or more, and it can be hard to know what to expect and how to proceed. We created this guide to help you handle estate settlement with confidence. Keep in mind that rules vary from place to place, and some estates will require more or less administration than is typical.
TLDR:
- Estate settlement can take six to 18 months (the time it takes depends on the size of the estate and the type of assets involved) and typically costs 3% to 6% of total estate value.
- Executors manage three phases: immediate steps after loss, estate administration, and distribution.
- Assets in trusts or with beneficiary designations skip probate and transfer in three to six months.
- Elayne automates estate settlement steps, which can save families up to 400 hours of administrative work.
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Understanding the Estate Settlement Process
Estate settlement is the legal and financial process that happens after someone dies. It involves taking stock of everything they owned, paying what they owed when they died, and distributing their remaining money and belongings to the people named in their will or (if there is no will) the survivors designated by law.
For most families, this process takes several months to more than a year. The steps touch every corner of a person's life: bank accounts, real estate, investment portfolios, insurance policies, and retirement funds.
The journey unfolds in three phases:
Immediate Steps After Someone Dies
In the days and weeks right after someone dies, you'll need to secure the home and any property, find important documents like the will and insurance policies, and notify Social Security, banks, and other institutions. You'll also arrange the funeral and request multiple certified copies of the death certificate.
Managing the Estate
This is where most of the work is required. You'll create an inventory of everything the person owned, open an estate bank account if one is needed, and determine whether probate is required. You'll also pay any outstanding debts, file final tax returns, and begin transferring or closing accounts. Depending on the size and complexity of the estate, this phase can last six months to as long as two years.
Distribution and Closure
Once debts are paid and any legal waiting periods have passed, you can distribute assets to beneficiaries and close the estate. This marks the formal end of the settlement process.
Common Estate Settlement Timeline and What Affects It
Some estates close in six months. Others take two years or more.
The difference comes down to a few key factors:
Complexity adds time. Estates with multiple properties, business interests, or assets in different states require more time to inventory and value. When beneficiaries disagree or someone contests the will, the process can extend by months or even years.
Court requirements can also add time. Most states require a creditor claim period of three to six months. Federal and state tax returns must be filed and paid before final distribution.
What Helps Speed Up the Process
Smaller estates may qualify for simplified probate procedures in many states, which can cut processing time substantially. And when beneficiaries communicate openly and agree on decisions, administrative steps move more smoothly.
If the person who died maintained organized documentation of accounts, debts, and intentions, you will spend less time searching and more time moving forward. Estates structured to avoid probate through trusts or joint ownership skip court review entirely.
Executor capacity also affects timing. Sharing responsibility with family members or working with professionals helps maintain forward movement.
The Executor's Role and Responsibilities
An executor is the person named in a will to carry out someone's final wishes. If you've been asked to serve in this role, you're taking on both a legal responsibility and a position of trust.
Core Responsibilities
Your first duty is to locate the will and file it with the probate court in the county where the person lived. This opens the estate and grants you legal authority to act on its behalf.
From there, you'll notify beneficiaries named in the will, creditors, and relevant institutions. You're also responsible for obtaining death certificates and using them to close accounts, file claims, and transfer ownership.
Financial Management
You'll inventory everything the person owned and determine its value: bank accounts, investment portfolios, real estate, vehicles, and personal belongings. If probate is required, you'll submit this inventory to the court.
Next, you'll pay what's owed: outstanding bills, final income taxes, and estate taxes if applicable. You'll open an estate bank account to manage these payments and keep records of every transaction.
Final Distribution
Once debts are settled and any required waiting periods have passed, you distribute what remains according to the will. You'll transfer titles, write checks to beneficiaries, and close accounts. If the estate went through probate, you'll file a final accounting with the court showing all income, expenses, and distributions.
Executors can hire attorneys, accountants, or estate services to help with specific steps, and those fees are paid by the estate itself.
Probate vs. Non-Probate Assets
Not every asset follows the same path. Some transfer directly to named beneficiaries. Others must go through probate court before anyone can access them.
Probate Assets
These are items owned solely in the deceased person's name with no beneficiary designation. Real estate titled individually, bank accounts without payable-on-death instructions, vehicles, and personal property typically require probate. The court oversees their transfer to pay debts and distribute assets according to the will or state law.
Non-Probate Assets
These often transfer automatically. Life insurance policies, retirement accounts, and payable-on-death bank accounts go directly to named beneficiaries. Property held in joint tenancy passes to the surviving owner. Assets in a living trust avoid probate because the trust, not the individual, holds title.
Estate Settlement Without a Will
When someone dies without a will, their estate moves through intestacy. State law steps in to decide who inherits and in what order. Typically, that means spouses and/or children first, followed by parents, then siblings, and then extended family.
How Intestacy Works
The court names an administrator to manage the estate. This person does what an executor would do: catalog assets, settle debts, and divide what's left. The difference is they follow state statute instead of written wishes.
Why the Timeline May Stretch
Estates without a will typically take about 25% longer to settle. Administrators need more time to track down heirs, value property, and mediate family disputes. The court applies closer oversight, which adds filings and waiting periods.
The absence of a will makes the journey slower, but the legal structure exists to close even those estates properly.
Understanding Estate Settlement Costs and Fees
Settlement expenses typically range from 3% to 6% of the estate's total value. That means a $500,000 estate may cost $15,000 to $30,000 to settle.
Taxes
Federal estate tax applies only to estates valued at more than $13.61 million (as of this writing), so most families won't face it. Some states impose their own estate or inheritance taxes. The estate must file final income taxes for the year of death and may owe tax on any income earned during settlement.
End-of-Life Expenses
Funeral and burial costs are typically paid before other debts or distributions.
Professional and Court Fees
Attorney fees depend on the estate's complexity. Some lawyers charge hourly rates from $200 to $500. Others take a percentage, usually 2% to 4% of the estate. Accountants may charge $1,000 to $5,000 for tax preparation. Court filings, appraisals, and document recordings add smaller amounts that build up over time.
All expenses come out of estate assets before anything goes to beneficiaries.
How to Settle an Estate with a Trust
When assets are held in a living trust, settlement happens outside of court. The trustee named in the trust document has immediate authority to act.
This difference shortens the timeline. Trust-based estates often close in three to six months.
The Trustee's Role
The trustee manages what's held in the trust: for example, real estate, bank accounts, and investment portfolios that were retitled during the person's lifetime. You'll review the trust document to understand distribution instructions, and then carry them out.
You'll still need death certificates and will have to notify financial institutions. But instead of petitioning a court for authority, you present the trust agreement and proof of death. Institutions release funds or transfer titles directly.
What Trusts Don't Cover
Assets outside the trust still require attention. Retirement accounts with beneficiary designations transfer separately. Personal property not formally placed in the trust may need to go through probate if it exceeds your state's small estate threshold.
Administrative Responsibilities
Trustees have fiduciary duties. They'll inventory trust assets, pay outstanding debts and taxes, maintain records, and communicate with beneficiaries. The trust document may require a trustee to provide an accounting before making final distributions.
Finding and Securing Unclaimed Assets and Benefits
One in seven Americans has unclaimed property held by state treasurers. Across the country, that adds up to $70 billion in forgotten assets.
State Property Databases
Search your state's unclaimed property database using the deceased person's full name and any addresses they lived at. If they worked or owned property in other states, search those databases too.
The National Association of Unclaimed Property Administrators runs a multi-state search tool. Look for old bank accounts, utility deposits, insurance payouts, and uncashed checks.
Insurance and Employment Benefits
Reach out to former employers about pension benefits, unpaid wages, or group life insurance policies. If you think a life insurance policy exists but have no paperwork, use the National Association of Insurance Commissioners' Life Insurance Policy Locator.
Veterans may qualify for benefits through the VA. If the person who died was a member of a union, you should check with their local chapter about any member benefits.
When to Consider Professional Help
Not every estate needs a lawyer or accountant from the start. Many families move through settlement with minimal professional help, especially when the estate is small and beneficiaries agree.
That said, you're not expected to know tax law or probate procedure. You may want to reach out for help if the estate includes business ownership, real estate in more than one state, or assets without clear value. If estate or inheritance tax filings are required, an accountant familiar with those returns can prevent costly errors.
Also, when beneficiaries disagree on distributions or someone challenges the will, an attorney protects you from personal exposure and keeps the process moving.
If you feel stuck or uncertain about what comes next, asking for guidance early can prevent bigger problems down the line.
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Types of Support
Estate attorneys file court documents, represent you in hearings, and give legal advice when state rules or disputes demand it. Accountants prepare estate and inheritance tax returns and help you understand financial consequences before you act.
Estate settlement services like Elayne guide you through each step, track deadlines, and handle administrative details, with access to support when you need it. The combination of automation and human help can reduce stress without the hourly cost of full representation.
Getting help when you need it protects both the estate and your peace of mind.
State-Specific Variations in Estate Settlement
Estate settlement rules vary by state. The steps you follow, forms you file, and fees you pay depend on where your loved one lived when they died.
Filing fees vary from county to county, from under $100 to several hundred dollars. Some states allow spouses to transfer property through affidavit. Others require court approval regardless of estate size.
You'll also see differences in creditor claim periods, bonding requirements, and document formats. If your loved one owned property in multiple states, you may need to open separate proceedings in each location.
Start by visiting your state court's website for local probate guides. Many county clerks publish jurisdiction-specific checklists that clarify which forms you need and when to file them.
Final Thoughts on Managing Estate Settlement
The estate settlement timeline depends on many factors, but understanding the process helps you plan and stay grounded. Take the time you need, lean on resources that make sense for your situation, and trust that you're doing right by your loved one. Remember, you can always reach out to Elayne if you need support or help with the many administrative tasks that need to be taken care of after someone dies. We will meet you where you are with personalized solutions that can save your family up to 400 hours of administrative work.
FAQ
How long does it take to settle an estate after someone dies?
Most estates take 12 to 18 months to settle, though simpler estates may close in six months while complex ones can take two years or more. The timeline depends on factors like estate size, whether there's a will, family agreement, and state-specific requirements.
Can I settle an estate without hiring a lawyer?
Yes, many families handle estate settlement without an attorney, especially for smaller estates with clear documentation and cooperative beneficiaries. However, you may want legal help if the estate includes business ownership, multi-state property, tax complications, or family disputes.
Do all assets have to go through probate court?
No. Life insurance policies, retirement accounts with named beneficiaries, jointly owned property, and assets in a living trust transfer directly without probate. Only assets owned solely in the deceased person's name typically require court oversight.
How much does it cost to settle an estate?
Estate settlement typically costs 3% to 6% of the total estate value. A $500,000 estate might cost $15,000 to $30,000 to settle, covering expenses like funeral costs, attorney and accountant fees, court filings, appraisals, and taxes. All costs come out of estate assets before distribution to beneficiaries.
