How to Determine What Assets Remain in an Estate After Paying Debts and Fees

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice about your specific situation.

Detailed Answer

When someone passes away in California, their estate comprises all assets they owned at death. To find out what remains after debts and fees, follow these steps:

1. Identify and Value Estate Assets

Collect bank accounts, real property, investments, personal belongings, and other assets owned solely by the decedent at death.
Determine the fair market value as of the date of death. Real estate appraisals and account statements can establish values.
Include probate assets (those requiring court administration) and nonprobate transfers (joint tenancy, payable-on-death accounts, certain trusts).

2. Prepare and File an Inventory and Appraisal

The personal representative (executor or administrator) must file an Inventory and Appraisal with the probate court under California Probate Code § 8800–§ 8894. It lists every asset and its value. You can view the statutes here: Probate Code §§ 8800–8894.

3. Identify and Pay Debts and Expenses

Creditor Claims: The estate must give notice to potential creditors and file valid claims within the time limits. See Probate Code § 9100 and following.
Priority of Payment: California law ranks expenses in this order (Probate Code § 11420): administrative costs, funeral expenses, taxes, secured creditor claims, unsecured claims.
Administration Fees: The law allows executor fees, attorney fees, and court costs up to statutory rates. Refer to Probate Code § 10810 for fee tables.

4. Calculate Net Estate Assets

After paying all verified debts and authorized fees, subtract total liabilities from the gross estate value. The resulting balance equals the net estate value available for distribution to beneficiaries under the will or California’s intestacy laws (Probate Code § 6400–§ 6454).

5. Distribute Remaining Assets

Once the probate court approves final accounts and the net asset calculation, the personal representative can distribute the remaining assets according to the decedent’s will or, if there is no will, per California’s intestate succession rules. See Probate Code §§ 6400–6454.

Helpful Hints

Maintain detailed records of all asset valuations and payments.
Promptly publish or mail creditor notices to avoid rejected claims.
Use professional appraisers for real property to ensure accurate values.
Understand statutory deadlines under California Probate Code to prevent delays.
Consult a probate attorney if the estate has complex assets or potential disputes.