Below is a hypothetical case study about a small family with two sisters who live in different cities from their now-deceased father. Here’s an example of how Executor Navigator services can make estate settlement much easier, plus an application for Muniment of Title
About the Family:
Sisters, Carrie and Chris, are the adult daughters and sole heirs of their recently deceased father’s, Tom, estate. Tom, a divorcee who lived in the Georgetown area, led a relatively simple life. A retiree with a paid-off home, a car, savings accounts and CDs in the bank, and a modest coin and bullion collection is suspected to be located in a bank safe deposit box. Although the ladies were close to their Dad, they were not completely privy to his financial affairs, but they knew the larger picture.
Tom had a simple, provable will leaving all of his assets to be divided equally between his two children, and named Carrie as the executrix who could serve without bond.
Both Carrie and Chris, who lived in Houston and Dallas respectively, were busy professionally and very active with family activities with their spouses and children. They knew that neither had the time to deal with the minutiae of the estate, especially given the distance, and were eager to find a solution that both preserved their time and afforded the estate the dignity it deserved.
Initial Conversation
About two weeks after the funeral, Carrie scheduled a complimentary 30-minute online video Q&A with Executor Navigator and invited Chris to join. Carrie mentioned that she’d probably just file Muniment of Title on her own for the assets and then they’d figure out from there how to divide them, but wanted to retain Executor Navigator to make the daytime calls or mail letters to close accounts and coordinate the estate sale. Both were not certain if they intended to sell the home, and were leaning toward them both keeping it as a rental property.
Executor Navigator informed the pair that on the surface Muniment of Title might be a good option, but talking to an attorney once they were armed with a better understanding of estate facts would be very wise, as we do not provide legal advice or determinations. Given that there were two beneficiaries, Carrie could not engage in a “pro se” representation in Texas anyhow, that the application had to be filed in the court that had jurisdiction given her father’s residence, and any attorney representing them would require solid documentation. [Aside: See my blog post about Muniment of Title.]
We recommended several local probate attorneys who assisted with Muniment of Title and would work with long-distance clients, but we could help with the estate settlement process by compiling a detailed list of known assets and liabilities after performing a detailed analysis of the estate.
Estate Settlement: Getting to Work
Once both the ladies gave approval and appropriate access to documents, home, and other necessary things, Executor Navigator began the initial stages of the estate settlement process. We notified credit bureaus, returned driver’s licenses and handicapped parking passes, and canceled unneeded services and utilities. We reviewed boxes of documents (some still in envelopes), organized them, and scrutinized bank and credit card statements for recurring charges. We also reached out to the homeowners and car insurance notifying them of Tom’s passing and that the estate was not yet in probate and that the beneficiaries were exploring different options and notified Carrie of any changes in premiums.
With the daughters’ permission, we hired a trusted security services firm to set up variable light sensors in the home to turn the lights on and off at certain times and guided the daughters on how to manage the mail. We notified the local police that there was a vacant home and hired a handyman to fix some minor issues that could pose a safety issue with the upcoming estate sale.
Although an estate sale company would not take on the sale until either an executor or administrator was named by the court or until the Muniment of Title was granted, Executor Navigator did take various photos of rooms and items and displayed them on a secured website. This helped both Carrie and Chris decide on any last-minute items they wanted and allowed us to begin the process of engaging estate sale companies regarding the personal inventory and have them pencil in the estate once either the Muniment of Title was granted or an Executrix was appointed.
Estate Settlement Services & Discovery: What We Found
During this discovery phase, we found Tom had a small credit card balance, several cards with zero balance – which we canceled, and an HVAC service contract, of which we obtained the details. We also discovered a small insurance policy through his former union that named Tom’s children as the beneficiaries and arranged for the ladies to receive the appropriate paperwork to claim it. We contacted the bank to make sure they accepted Muniment of Title (if the attorney later determined this to be the appropriate process for this estate), and asked about their policies regarding CDs, and confirmed the existence of a safe deposit box.
As we wrapped up all known documents and contracts, we compiled an asset and debt dossier to share with the probate attorney. After reviewing this and the will, he advised Carrie that this particular service contract had a provision to end at the death of her father and to go ahead and just pay off the credit card, but to get a written confirmation from the company that it was closed and no balance owed. With this, he felt confident the estate otherwise was a good candidate for Muniment of Title.
(Please note: Do not just assume and pay off credit card debt. This should be analyzed in the context of the entire estate first. Often, yes, it comes down to being the correct action, but not always.)
Closing Phases of Estate Settlement
After clearing out the credit card and later obtaining the Muniment of Title order, Carrie and Chris made a trip to the Georgetown area to collect the remaining personal items they wanted to keep, meet with the estate sale representative, pick up the car, and attend to the banking matters. Executor Navigator met them along with the estate sale representative at the home, gave them the needed documents to transfer the car, and then coordinated with the estate sale representative regarding the services they offered, including taking unsold items for donation.
We accompanied Carrie and Chris to the bank where they closed out what accounts they could and retitled the CDs that had yet to mature to their names. They closed out the safe deposit box, and took a photographic inventory with Executor Navigator, then handed over the items to get evaluated. (Appraisal is needed for high-value items so you can establish a stepped-up basis or value. Later, when you sell, your capital gains taxes are determined by the difference between the sale price and this new basis. Especially with homes, paying for an appraisal can save tens of thousands of dollars if you plan to rent it out but later sell.)
New Opportunities
When asked about the home and if they decided anything, the ladies said they were not quite ready to part with it and wanted to rent it out. As with the coins, Executor Navigator advised them to get the house appraised and to consider starting an LLC, with ownership considerations aligned with larger estate planning goals. We then arranged for the appraisal, got them in touch with a solid business attorney to explore their options, and searched for a reputable Property Management group to help them actively manage the property.
After the coin appraisal, we shared the reports with the ladies and proposed a fair way to divide them. We then shipped the items to their new owners along with the original and a notarized copy of the appraisal for their records.
About Executor Navigator, LLC | Independence Navigator
Executor Navigator, LLC (d/b/a Independence Navigator) was founded by Shannon Tefft-Janes in 2022 and offers resource and support services for Executors and Administrators of Estates in addition to Personal Money Management and Financial Organization Services. Over the years, after seeing many friends and family members struggle when they administered a loved-ones estate (and being called in once things went astray), she noticed that there was a need for a compassionate, efficient service that filled the gaps between the attorneys, accountants, and other professionals involved in the estate administration process.
If you need assistance, or just need a sounding board, please schedule a no-obligation, complimentary 30-minute consultation. You’re welcome to invite other family or friends to join. Also, please be sure to get a free Estate Administration Checklist.