Once a person passes on, their estate must typically be administered to determine who is entitled to take ownership of the various assets and interests left by the decedent. If an estate is small, it can sometimes be administered without opening a formal estate through the Court. More often, however, the estate must be administered through the Court provided probate process.
A Personal Representative, formerly sometimes known as an Executor, is appointed by the Court to administer the estate. A Last Will and Testament commonly nominates the Personal Representative. Once appointed, the Personal Representative is charged with collecting the decedent's assets, paying any last debts, including any claims against the estate, paying any last income or death taxes, including estate and inheritance taxes, and making distribution of the estate assets as directed by the Last Will and Testament. If the decedent did not leave a Will but left assets, Indiana law provides for the distribution of the decedent's net estate by statute.
Creditors must be notified once an estate is opened. Notification is made directly to known creditors and by publication for the benefit of creditors that may not be known to the Personal Representative. The law sets a deadline for these notifications and for a creditor to file a claim for any alleged debt. If legitimate and if the estate has sufficient assets, the Personal Representative can typically pay the claim, either directly or with the Court's permission. If the claim is not more questionable, the Personal Representative can deny the claim and seek to have the Court resolve, by trial if necessary, whether the claim should be paid.
Taxes must also be paid. Legal counsel should be consulted immediately as stringent deadlines are imposed for the payment of death taxes such as the Federal Estate Tax, when in effect, and the Indiana Inheritance Tax. Fiduciary income taxes for income generated by the estate as well as final personal income taxes must also be filed with the appropriate taxing authorities and paid.
Once the claims and taxes are paid, and the Personal Representative has made or is ready to make final distribution of the estate, the Personal Representative must file a statement with the Court either showing the proposed distribution, or for estates not formally supervised by the Court, a closing statement showing the distribution made. In either case, the Personal Representative must account for their actions and the funds of the estate. All heirs and interested persons are entitled to receive the closing documents with full accountings.
Most estates can be administered to completion over the course of a few to several months. The particular circumstances of each estate administration can vary widely. It is usually advisable therefore to involve legal counsel from the beginning.