Taking care of a loved one's estate after they've passed away can be an emotional and difficult process. There's so much to handle, from organizing their belongings to dealing with financial matters, that it's easy to feel overwhelmed by all the responsibilities.
While it's important to take your time, avoiding common mistakes can save you stress, time, and money. Whether you're working through this process alone or with family, understanding potential pitfalls can make the process a lot smoother.
To help you, here are five mistakes to avoid when handling a deceased family member's estate.
1. Sorting Through Every Item
Going through every single item in the estate can be exhausting and time-consuming. Instead, focus on key areas first, like important documents, valuables, and sentimental items. Categorize belongings into groups such as "keep," "donate," and "sell."
You can also use four boxes and mark which one will hold personal correspondence, photographs, medical papers, and legal documents.
2. Not Talking to an Appraiser
Many people skip the step of consulting an appraiser, thinking they can estimate the value of items themselves. However, an appraiser can help identify hidden treasures like antiques or collectibles that might have significant value.
Without this expertise, you risk undervaluing or accidentally discarding valuable items. You are also risking overvaluing items more than the market does.
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3. Neglecting the Attic and Basement
Attics, basements, and storage spaces can hide valuable or meaningful items that are easy to overlook. Even if these areas feel messy or overwhelming, take the time to search them. You might find heirlooms, important papers, or special keepsakes worth keeping.
4. Selling to Dealers
While selling to dealers might seem like a quick solution, it's not always the most profitable option. Dealers often buy items at a fraction of their value to resell them at a profit. If you're looking to maximize the estate's value, consider selling through online marketplaces, estate sales, or auctions instead.
That said, if you have lovely pieces of jewelry, stamps, or artwork, you can also sell directly to collectors. They are likely willing to pay more for unique items.
5. Failing To Deal with Debts
The Federal Trade Commission said that family members are not responsible for paying the debts of their deceased loved on. The funding will be taken from the estate. However, certain conditions like co-signing obligations can make a family member responsible.
It's important to address any debts or financial obligations left behind. Ignoring these responsibilities can lead to legal troubles later. Work with an attorney or estate planner to ensure all outstanding debts are properly handled.
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