Disclaimer: This article provides general information and does not constitute legal advice.
Detailed Answer
Under Kansas probate law, an estate must pay valid debts, administrative expenses, taxes, and statutory allowances before distributing remaining assets to beneficiaries. Follow these steps to determine what assets remain after debts and fees:
1. Inventory All Estate Assets
The personal representative compiles a list of probate assets as of the decedent’s date of death. Include bank accounts, real estate, personal property, and investment accounts. Obtain current fair market values through appraisals or statements.
2. Identify and Pay Creditor Claims
Kansas law gives creditors six months to file claims from the date of the first publication of notice to creditors (K.S.A. 59-2121). Priority claims include:
- Funeral expenses and burial costs (K.S.A. 59-1701).
- Claims with statutory preference (K.S.A. 59-1707).
3. Deduct Administrative Expenses
The estate pays administration costs, including executor fees and attorney fees. The personal representative draws a commission allowed by statute (K.S.A. 59-507) and attorney fees per K.S.A. 59-509.
4. Apply Statutory Family Allowances
Kansas law grants a family allowance to the surviving spouse and minor children for support during administration (K.S.A. 59-6a213).
5. Calculate the Net Estate (Residue)
Subtract total creditors’ claims, administrative expenses, taxes, and allowances from the gross value of estate assets. The balance constitutes the “residue.” Distribute this residue according to the decedent’s will or, if no will exists, under Kansas intestate succession rules (K.S.A. 59-508).
Helpful Hints
- Maintain detailed records of asset valuations and transaction receipts.
- Publish and mail notices to creditors promptly to fix the claim filing deadline.
- Obtain professional appraisals for unique or high-value assets.
- Consult IRS rules for estate tax filing requirements if the gross estate exceeds federal thresholds.
- Review the will carefully to confirm specific bequests before distributing the residue.