"When my husband died, my kids wanted me to put them on the house. I haven't done it yet – should I? My daughter lives locally, and she's on my accounts so that if something happens to me, she can take over."

Uncle Herman has just died, and you have been duly selected as the Executor of his Last Will and Testament. Hopefully, you were forewarned. Congratulations.

Your obligation is to marshal, preserve, and distribute the assets of the Estate in accordance with the terms of the Will and the Law; and to treat creditors, beneficiaries, and the taxing authority impartially. This can be no small feat.

If you are a beneficiary of the Will, you have an inherent conflict of interest, since you must (a) make sure all legitimate creditors are paid, while (b) making sure your own inheritance is not diminished. While this sounds simple enough for a reasonably moral individual, there are times when the issues are not clear, and it becomes difficult to reconcile your interests and your obligations impartially.

To open the estate, you will file paperwork with the Register of Wills of the County in which Uncle Herman died domiciled. The Petition for Probate and supporting documentation, including bond and notice for publication in the newspaper, suffice to open the Estate and, hopefully, provide for you to be appointed as Executor.

Marshaling the assets of the Estate is simple if Uncle Herman kept a detailed, up-to-date list of his assets and liabilities. All cash assets must be transferred to an Estate account. Securities must be retitled in the name of the Estate. Real estate need not be retitled, but should be administered with the obligations of the Executor paramount. Beneficiaries can reside in Estate real property, but only if consonant with the terms of the Will. Tangible personal property ("stuff") must be inventoried before the beneficiaries remove it from the premises, and valued for tax purposes, if not directed by the Will.

Preserving the assets of the Estate requires keeping them insured, exercising reasonable care with personal property, and carefully tracking the receipt and expenditure of Estate assets for Estate purposes. Every dollar or item must be accounted for, and any discrepancies are resolved against the Executor. This writer advises his Executor clients not to make any expenditure or distribution without consultation, and to keep every slip of paper.

You must then begin the process of valuing assets. Real estate can be inventoried for Estate purposes at assessed value, but if the Estate is taxable, you should obtain a full fair market value appraisal. This can be more challenging than it appears; valuation for one purpose is not sufficient as valuation for other purposes, and an appraisal must take into account all factors. In one recent estate, the Executor unaccountably ignored subdivision potential in valuing the family farm, reducing value (and thus distribution) by approximately one-third. Beneficiaries were less than completely gruntled.

Securities are valued at their average price in the markets on the date of death. Cash assets are valued using either the last statement value, adjusted for transactions prior to death, or a written statement from the bank or other custodian of the account. Tangible personal property is valued at fair market value, usually by an appraiser or auctioneer.

All of these values must be totaled on an Inventory of the Estate, and you must file it with the Register of Wills within three months of the date the Estate was opened. You must also file a statement of any assets of which Uncle Herman was joint owner and any retirement assets, since these might be subject to tax.

All creditors’ claims must be filed within six months from the date of Uncle Herman’s death. Any claim not filed by that date is time barred. An important exception is for claims of the Department of Health and Mental Hygiene, which can be filed at any time up to one year from the date of death. Claims must be filed in a legally determined format and property executed.

Thereafter, you need to decide which claims are to be paid, and which are to be contested or denied. In the latter cases, you should plan on a Court hearing to determine the rights of the parties. If you pay any creditor without receiving a claim, you are personally liable to the Estate for that amount if contested by another creditor or beneficiary.

Within nine months of the opening of the Estate, you must file an Accounting, showing the gains and losses in value of assets, receipts and disbursements, and distributions to beneficiaries during the Estate process. Again, every asset and every dollar must be accounted for, sometimes a significant burden in an active Estate or an Estate with many creditors and beneficiaries. State and federal death taxes are due by this date, and probate fees are paid with the Accounting. You will also petition the Orphan’s Court for your commission and the attorney’s fee.

Assuming that all creditors, beneficiaries and the taxing authorities are satisfied, and all Estate business is completed, the Estate is then closed. Nearly a year of your life has passed, and, if you are like many, you are now considering how to avoid placing this burden on your family upon your death.