How to Settle an Estate: Closing Up the House

When you are settling an estate, the last thing you want to do is pack up the deceased's belongings, clear out their clutter, and close up the house. Unfortunately, it's one of the first things you have to do. Most "how to settle an estate" advice pretends this emotionally stressful task has magically been finished and skips right to the legal paperwork stage.

I'm going to assume that at least one family member - probably the one who never visited the deceased- will cause a stink about the personal property. Good record keeping will minimize your problems with this person. Keep careful track of all your expenses (receipts for packing boxes, the rent on a storage unit, etc.) because you are entitled to be repaid from the estate for these expenses.

Always get several certified copies of the death certificate as soon as possible ... you will need them to deal with landlords, mortgage companies, utility companies, and others. I found out five years after my mother's death that I needed yet another certificate for my credit union.

The Process

Your objective is to get this done with as little stress to yourself as possible and get as much value for the estate as possible. These are contradictory goals, but if you have realistic expectations, you can do it. If you have friends and family members helping you, it can become a way to share the memories and the load. You might spend an hour sobbing after finding a memento, but it's part of the process.

Bring a couple of large trash cans, a box of large trash bags, several boxes of tissues, and some packing material: boxes, padding, tape, marking pens, and labels. Quickly inventory, pack, and remove any high-value items to a safe place. Thieves read the death announcements looking for targets. The funeral is a good time for them to hit, so notify the police and have someone house-sitting during the services.

Then, dispose of all visible trash, opened food, and opened toiletries. Unopened food and toiletries can be given to a food bank or charity. Keep the receipt for the legal paperwork stage.

To prevent the utilities from being shut off, call the utility companies and make sure those bills have been paid. As you work, look through the accumulated papers for other unpaid bills and personal correspondence - check the top layers of any piles on desks and tables. Beware of fake bills: there is a slimy set of scammers that see an obituary and start sending phony bills, even bills for medical or legal services. Don't pay any bill until you are certain it's legitimate.

Work through each area in turn, removing all items from cupboards, closets and drawers. As you start an area, open all the doors and drawers. When the closet or drawer has been emptied and checked for hidden objects, close it. You can track your progress by how many doors and drawers are closed. As you clear areas, sort the items into "keep" for family heirlooms, "don't keep" for ordinary objects, and "trash" for broken things.

Look carefully for hidden valuables: Check under drawers and drawer liners for important papers. Remove all drawers and look at the bottom (my gran was fond of taping envelopes of cash there). Look inside dressers when you remove drawers. If there is a solid dust shield, things may have fallen behind the drawer or been hidden there. Use a ladder and check the rear of high shelves. Look behind and under appliances. Remove the drawers from filing cabinets and look inside the bottom of the cabinet. A surprised buyer at the late artist Andy Warhol's estate auction discovered a stash of jewelry worth hundreds of thousands of dollars in the bottom of the metal filing cabinet he bought from the artist's estate. Look through all books - a recent news article told os $1300 found in a thrift shop book.

The clothing can probably go to a charity because the resale value of most used clothing is too small to bother with. The exceptions would be designer labels, and vintage clothing. If you see famous name labels or clothing that is so far out of fashion that it is now "retro", call a local vintage clothing dealer. As you pack the clothing, check ALL the pockets, and inside the shoes and hats for cash and other items as you pack. Every year there is a story in the news about someone finding a valuable ring or a bundle of cash stuffed in a thrift store purchase.

Make a list of the contents of each box as you pack (the inventory) and put it in an envelope taped to the outside of the box, or a label on the box. Move these to one area to make loading them into the moving van easier.

Give the heirs a chance to select any keepsakes and furniture they want. Keep track of the approximate value of these items (look in local consignment shops or on eBay for similar things) so you can deduct their picks from their share of the estate. Then you can either have an estate sale or call a second-hand store (or two) to make a bid on the remaining contents. Calling in a professional to hold the estate sale is a stress-saver and well worth their commission. They know what is a currently hot collectible and what is just used kitchenware.