Settling the Estate After a Funeral

What should I do first after the funeral?

1. Order certified copies of the death certificate. Banks, insurers and other institutions may each want one. The funeral home can usually order them for you. Ask what each copy costs, and count how many certified copies you'll need first.
2. Find the will and important papers. Look for a will, life insurance policies, bank and retirement statements, deeds, and any prepaid funeral contract.
3. Keep every funeral receipt and the written statement. You'll need them to get repaid from the estate or to claim benefits.
4. Check whether probate is needed. Each state sets its own rules, including simpler procedures for small estates. ProbateUS state guides explain your state's rules and list the county court that handles probate.
5. Claim benefits that help with the cost. Help paying for a funeral covers the Social Security death payment and VA burial allowances.

Does the family or the estate pay for the funeral?

Often the family pays first and the estate pays them back. Many state probate laws put reasonable funeral expenses ahead of most other debts. In Montana, for example, if an estate can't pay all its claims, reasonable funeral expenses come right after the costs of administering the estate, ahead of taxes and most other debts (Mont. Code Ann. § 72-3-807). The order differs by state, so check your state's rules or ask a probate attorney.

If the estate files a federal estate tax return, funeral expenses are deductible from the gross estate (26 U.S.C. § 2053).

How can I make settling the estate easier?

Get organized early. Settling an estate means more than probate: accounts, insurance claims, property and bills. Gathering documents, keeping a written list of what the person owned and owed, and deciding who'll act as executor or administrator all save time later, whether or not you hire an attorney.