After all creditors have been paid, taxes filed, assets sold, and distributions made, it is time to close the estate. Closing the estate prevents creditors from coming forward to make a claim against the estate at a later date. Although the debtor and creditor period ended long ago, so long as the estate remains open a creditor can make a claim and the Executor or Administrator would have to refute it. Closing the estate also prevents any disgruntled beneficiaries from saying they didn’t receive their share or all of their share and overall prevents any further liability to the Executor or Administrator.
Unlike the Petition to Probate where there is a different petition for a Will and without a Will, there is only one petition when closing the estate, the Petition for Discharge of Personal Representative. The Executor or Administrator should initial that they have fully administered the estate and then name all of the beneficiaries or people who received distributions from the estate. Unlike the initial petition, if there was a Will, the court needs to know who the beneficiaries are rather than who is a legal heir. Sometimes the people listed in the opening petition and closing petition are the same, but double check the Will to see if there were any specific gifts or distributions to people who were not named heirs.
If any claim against the estate was not paid, either some problems led to an unresolved issue or the estate was insolvent, any unpaid creditor must be named in the Petition along with the reason why that creditor was not paid.
Like the first petition, all parties named in the petition should sign an acknowledgement. This acknowledgement states that the beneficiary understands the estate is closing and has no objection. This prevents them from accusing the Executor or Administrator of wrongdoing or later claiming they did not receive their share. If all the beneficiaries do not sign, they can be served personally or by publication.
After all the acknowledgements have been received and the petition is completed, the petition should be submitted to the Probate Court. The Court will review all of the paperwork and then issue a Final Order for Discharge of Personal Representative. Once the Final Order is received the estate is officially closed and there is nothing else to do.
At Grissom Law, we help our clients through the probate process from the beginning Petition to the Final Order for Discharge. Probate can be a complex and confusing process, but with the right help it can be a peaceful way to say your final goodbye to a loved one and help wrap up loose ends.
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