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

This article is for informational purposes only. It is not legal advice.

Detailed Answer

When a person dies in Connecticut, an executor or administrator must gather and value all assets, pay valid debts and fees, and then distribute the remainder to beneficiaries. Follow these steps:

Identify and Collect Assets
Locate all estate assets: real estate, bank accounts, investments, retirement plans, life insurance proceeds, personal property and digital assets. Review the will (if one exists) and search financial records.
Obtain Accurate Valuations
Hire qualified appraisers for real estate and valuable personal property. Use statements for bank and investment accounts as of the date of death. Accurate valuation ensures fair distribution.
Provide Creditor Notice
Under Conn. Gen. Stat. §45a-343 (Notice to Creditors), publish notice in a newspaper and mail notice to known creditors. Creditors generally have six months to file claims.
Review and Prioritize Claims
Connecticut law establishes claim priority: funeral expenses, administration costs (including executor fees under Conn. Gen. Stat. §45a-341), taxes, secured debts, and general unsecured debts. Pay claims in the statutory order.
Prepare an Inventory
File a detailed inventory with the Probate Court within 60 days under Conn. Gen. Stat. §45a-365 (Inventory Filing). Include asset descriptions and values.
Pay Debts, Taxes and Fees
Use estate funds to pay valid creditor claims, final income taxes, estate taxes and administration fees. Keep all receipts and bank records for your accounting.
Calculate the Net Estate
Subtract total debts, taxes and fees from the gross estate value. The result is the net estate available for distribution to beneficiaries.
Report to Probate Court
Submit a final accounting to the Probate Court showing all receipts and disbursements. Once approved, distribute remaining assets per the will or Connecticut’s intestacy laws.

Helpful Hints

Keep detailed records of every estate transaction and valuation.
Consider hiring a probate attorney to navigate complex creditor claims and tax issues.
Obtain multiple appraisals for high-value items to ensure fairness.
Check deadlines carefully: missing a creditor notice deadline can expose you to personal liability.
Use accounting software or ledgers to track payments and document distributions.