Real estate and personal property.

1. Obtain a formal appraisal of all real estate, and request the value as of the decedent's date of death.
2. Make an inventory list of all tangible household personal property along with their value. Generally, the value of this property at an estate auction can be used. If there won't be a sale, your honest and reasonable "best-guess" estimate of value will usually be acceptable. How detailed and itemized the inventory list must be can vary, depending largely upon the attitudes of the other interested parties. Typically, property of this type �clothing, personal effects, furniture and the like �can be lumped together into a few broad categories. However, if there seems to be mistrust among the beneficiaries or even insinuations of misconduct, you should make a videotaped inspection of the deceased's residence and property, again with a witness.

   Collectibles and big-ticket items such as vehicles should be listed separately. If at all possible, use some well-known benchmark or reference (such as the "blue book" for a car) to determine value. But if the beneficiaries are likely to be suspicious or critical, it might be wise to consider a formal appraisal of collectibles and other valuables. It's important �and much less troublesome �that everyone feel confident in the values assigned to all pertinent items.

   One way of making a difficult task easier if you anticipate having trouble evenly distributing household items that are not specifically listed in the will might be to use a coin flip or the drawing of straws to decide. On each turn, the beneficiaries could decide to choose something of sentimental importance or cash value. This will likely achieve about as fair and equitable a result as any other procedure and, even more importantly, the process itself is transparent and will go a long way toward extinguishing quibbles among touchy heirs.

Final debts and distributions.

1. Pay all of the decedent's legitimate final bills from the estate checking account.
2. Pay all applicable taxes. Tax returns that may have to filed and paid include final-year federal and state individual income taxes, estate income tax (if the estate itself earns more than $600 per year in interest and other income during the period of probate administration), and state inheritance or estate taxes and federal estate tax, if applicable (these should be handled by an estate tax professional, even if you do the others yourself).
3. When all debts and obligations of the estate are satisfied, divide the remainder according to the will.
4. Keep a record of everything you've done and be prepared to make a final accounting or report to the court if required by law, or if requested by a beneficiary.