A little knowledge is dangerous. Hastily made decisions can erode or even devastate an estate’s value. For example, it is common practice for a surviving spouse to rollover the IRA of a deceased spouse. But this decision could cost the survivor thousands, and take away needed flexibility.

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1. Guard the home of the decedent and the children named in the obituary during the funeral. The obituary is an advertisement to every burglar in town knows exactly where you will be. No one will be home on the date and at the time services are held. Have someone watch the homes of the decedent and anyone else named in the obituary during the funeral. Omitting the address of the decedent from the obituary is standard practice now but it is very easy to find the address on the internet based on the city the funeral home is located in and your name. The obituary also lists the names of the persons who the decedent is survived by. Their homes are also at risk if they live locally.
2. Secure the home and the personal property in it. If you are the executor or Trustee you have the duty to protect the estate’s property. So don’t just lock the door. Change the locks. Tangible personal property has a way of growing legs and walking off. You never know who may have keys to the house. Perhaps copies were made over the years for handymen, friends, neighbors, or caretakers. If items are missing the list of usual suspects can be very long if the premises are not secured. To this end consider immediately removing items of special value and storing them in a safe place. Even if the value of the personal property is nominal in the market it may have enormous sentimental value. Limit access to the home, preferably to the executor or Trustee only. If something that the family always knew was there is missing when it comes time to distribute then anyone with access could have taken it—but the administrator is responsible. In addition going through the home and making an inventory of all tangible personal property in the presence of a witness is also advisable.
3. Make sure liability policies on the decedent’s assets are in-force. Don’t assume the decedent has taken care of business. Often these matters are overlooked when dealing with the final months of life. Even if there is insurance you need to contact your agent and let him know that the owner has died. If the home is vacant the rates will be higher. If you elect to keep the old policy in place to save money you may find yourself without coverage if there is a fire, or worse, some kids break in and sustain injuries resulting in a lawsuit that can damage a lot more than the home.
4. If the decedent owned and operated a small business make sure the customers keep coming. When I was a young lawyer I handled a case in which the decedent owned and operated a small exterminating business. He was the only employee. Everyday that went by and he didn’t show up on his route customers were calling Orkin or some other competitor. To preserve the value of the customer list make sure the business is being looked after even if you have to hire someone or pay extra to key employees until the business can be sold or taken over by a family member pursuant to the terms of the decedent’s will or trust. In the exterminator case, since there were no employees, a prompt sale to a competitor was arranged while the customer list was still fresh.
5. Then, don't make a move. With the exceptions of numbers 1-4 above, the most important thing you need to know immediately is that nothing is to be done with any of the property until after you meet with the attorney who will be handling the estate administration. The medical adage of “First, do not harm” also applies to the law of estate administration. Even if you have the authority to do so because you are a joint tenant or trustee etc. it is very important that you leave the assets where they were found until a tax-efficient funding strategy is decided upon. Until then, don’t sell assets. Don’t roll over retirement plans. Don’t change title on assets. Don’t submit claim forms to insurance companies. Don’t take any distributions of estate property no matter how certain you are that the amount is well within the inheritance you will be entitled to. The failure to follow this rule can result in higher estate taxes, income taxes, or capital gains taxes. It may also make the inherited assets vulnerable to the beneficiaries’ creditors, lawsuits, divorces or bankruptcies. Haste can also arouse suspicions and create ill will among family members resulting in expensive litigation. Whether your particular estate has any of these issues depends on the facts and circumstances.

Call 847-674-0200 for a free consultation.