How To Settle An Estate: Pay Final Bills, Dues, Taxes And Expenses

How To Settle An Estate: Pay Final Bills, Dues, Taxes And Expenses

This article on settling an estate is provided by Everplans — The web’s leading resource for planning and organizing your life. Their service allows for you to create, store and share important documents that your loved ones might need.  We highly recommend taking a look at Everplans, as they are a tremendous resource for estate planning knowledge.

payment overdue

In order to settle the estate, all outstanding bills and dues that the person who died owed must be paid.  

Types Of Bills And Dues

Common types of bills and dues include:

  • Credit cards
  • Medical bills
  • Student loans
  • Car loans
  • Mortgages
  • Alimony
  • Child support
  • Payday loans

Administrative Expenses and Final Bills

Bills and dues can be divided into two categories: administrative expenses and final bills.

Administrative expenses are any ongoing bills — examples: rent/mortgage, insurance, and utilities — that must be paid if you still need to use them. These bills can (and should) be paid even if the probate process is not complete.  You’ll also want to transfer these ongoing bills and accounts into the name of the person taking ownership over the properties or services still in use. If the property is being sold/abandoned or a service is being canceled, it’s up to the executor to manage the details and pay the final bills on behalf of the deceased. Any expenses incurred should be reimbursed by the estate.

Final bills are bills for which the full amount can only be paid once the probate process is complete, such as taxes, credit card bills, and medical bills. These bills should only be paid by the executor using money from the estate once probate has concluded.

If you can’t afford to pay some of the administrative expenses without money from the estate, you should be in touch with the companies that are owed and explain your situation. In some cases, you may be granted a deferral on those bills.

Paying Taxes

You Will also have to pay taxes on behalf of the person who died and the estate. To learn about the tax element of settling an estate, see our article Paying Taxes on Behalf of the Estate and the Person Who Died.

Other Important Things To Take Care Of…

Cancel Any Credit Cards, Cell Phones, Newspaper and Magazine Subscriptions, Memberships, and Online Accounts that the Deceased Had

In many cases, cancelling a credit card will take care of cancelling paid accounts and services, since any services or subscriptions associated with that card will no longer be paid.

Cancel Mail or Forward Mail

To forward the deceased’s mail, you must complete a Change of Address Form and submit the form to your local post office, along with proof that you are authorized to manage the deceased’s mail.

Cancel Utilities or Transfer Accounts

If any utilities were in the deceased’s name, such as electricity, gas, water, phone, cable, and Internet, these utilities should either be canceled or transferred to the name of a survivor.

Distribute, Sell, or Donate Any Personal Items that Were Not Included In the Will

Many times, personal items of sentimental or real value are not included in a will. These items should be properly distributed to surviving family members or donated to charity.

Bill Pay / Monitoring Service

There are many situations where hiring a 3rd party bill pay/monitoring service can help remove a major burden on the aging person and/or their families.   Read below for an overview of the main benefits this service provides its clients…  We also recommend another great service, EverSafe, a financial account, and ID monitoring service

Learn More SilverBills – Personal Bill Paying Services

  The Details

  • We scrutinize your bills for errors and fraud and make sure your bills are paid on-time and correctly.
  • We employ technology to ensure that amounts paid are customary and reasonable. If there is an issue, you will be contacted immediately.
  • You will be provided with a secure portal with login information, so that if you wish, you may see all of your bills.
  • You will continue to receive your monthly checking statements in the mail if you wish, and we do not have access to your bank account.
  • Payments are deducted from your existing bank account.
  • In the case of paper bills, you may have them mailed to us, and we will take care of those as well.
  • We save you time and aggravation for a reasonable monthly fee.

  Commitment

  • We will take exceptional care of you so that you and your loved ones will be relieved from the burdensome job of bill paying.
  • You will have a dedicated, specially-trained customer service representative who will be your one point of contact and will be available to provide you with support.

  No Risk

  • Cancel at any time with no-risk.
  • We are fully insured.
  • If we hold your funds, they are maintained in an account in your name at an FDIC insured bank with SilverBills as your agent.

  Security

  • Your security is our highest priority.
  • We safeguard your accounts and personal information by using 256-Bit Encryption and Bank Level Security.

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