How wealth passes from one generation to the next
1. A person signs a will outlining how his or her life savings, real estate and personal mementos should be distributed upon death. The will often names an executor, also known as a "personal representative," who is to gather assets, pay bills and distribute inheritances.
2. After death, an estate is opened in probate court. If the executor is not named, or cannot serve, the judge will appoint one. If the executor is not a lawyer, one must be hired to provide legal guidance.
3. Creditors have three months to submit bills to the estate for medical care, funeral services or other unpaid debts. After those debts are paid, the executor can distribute inheritances.
4. Unless there is a federal tax return or other complication, the executor should file a financial accounting and close the estate within one year.
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