Distributing Your Deceased Parents’ Estate

As parents pass away, children can be hit with a long list of tasks surrounding the parents’ estate. Many times, these chores can become overwhelming, especially now when the market is down and not as many people have extra money for antiques and collectables that come from estates. The Wall Street Journal discusses how you can deal with your parents’ stuff while keeping family harmony and finances in tact.

1. Go slow, but do not be too paralyzed to start. Sometimes it can be hard to start selling a loved one’s items right after his/her passing. You can hire a liquidator to clear everything out fast, but if your financial situation allows it, you might be able to take a little time to deal with your grief before starting to clear out the items yourself. You also don’t want to stall too long because all the while, you may be making payments on a mortgage or bills for a house no one is using because you have not yet cleared out.
2. There are numerous reasons you may want to bring in professionals to help you go through family belongings. There are estate liquidators, auction houses, and consignors that usually charge a percentage of the price that you sell the items for. An auctioneer might be who you want to hire if ou plan to sell certain items and then handle the disposal yourself. Consignment shops usually charge at least 50% commission and you should be sure to find out what happens to your items if they do not sell within the thirty days that the shop leaves them on the floor. Professional move managers and organizers charge an hourly rate that can range from $40 to $125 per hour.
3. Make sure you track down bills, cancel credit cards, and tie up other financial loose ends so that you or the estate is not paying for services that no one is using.
4. Be diplomatic when giving out heirlooms that remain in the estate. The best strategy is for parents and children to discuss who-gets-what before parents die. Otherwise, the siblings should agree on one person who gets the final say, whether that person is among the siblings or a third party. Lastly, they should let all interested parties list what they want and rank how much they want each item. Then siblings can start compromising from there.
5. Document deductions from liquidation. One good way to east the emotional sting of a parent’s death is to donate to charity. Children usually get to claim a tax deduction for items donated to charity.

See Kelly Greene, The Pearls Are Mine!, The Wall Street Journal, Feb. 4, 2012.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this to my attention.