If a loved one has recently passed away and left you as the executor of their estate, it's important that you fully understand every aspect of this responsibility. While most people understand that, as executor, they are responsible for distributing assets according to the deceased's wishes, few understand that this is only part of the job. Here's a look at what your probate lawyer would like you to know about the big financial picture of being an estate executor.

Start By Identifying All Of The Assets

The first step in managing a deceased's estate is to identify all of the assets included in that estate. You'll need to identify, locate, and assess all of the assets to be sure that you not only have them all but also know exactly what the value is of those assets combined. When possible, create an inventory so that you know what the estate consists of and where those assets are.

Compile The Outstanding Debts

In addition to identifying the assets, you also need to determine what the deceased had for outstanding debts. You'll need to pay those debts, including personal credit card debts, state-levied estate taxes, and more. You can publish a public notice of death for creditors as well as reaching out to creditors who have contacted your loved one by mail or phone call. Contact each creditor to alert them to the deceased's death, and request proof of the debt balance at the time of death.

Liquidate Necessary Assets And Pay Debts

Once you validate those debts and the balances owed, you need to settle the debts on behalf of the estate. Use funds from the estate or liquidate assets as needed to generate the cash required to settle those debts. You should not start distributing assets to the beneficiaries until the debts are paid and settled. 

Distribute Remaining Estate

The assets left following debt settlement should then be distributed according to the distribution requested in the deceased's will. In the event that they passed away intestate, and you were appointed executor by the probate court, you should then distribute the estate's assets according to the probate court's recommendations. Typically, that requires even distribution to the deceased's heirs.

With so many steps to take in dealing with a deceased's estate and outstanding debts, it's in your best interest to work with a probate lawyer to settle the entire process. Having legal representation ensures that you complete the process correctly. Contact a probate attorney for more information.