November 14, 2025
When someone passes away, their money, property, and personal items don’t just disappear. These things make up what’s called their estate. Estate administration is the legal process of taking care of that estate—paying debts, handling taxes, and making sure the right people get what was left to them.
If you’re dealing with the death of a loved one, the legal steps might seem confusing or overwhelming. As an experienced estate attorney in Indiana, I’m here to break it down in a way that’s easy to understand.
What Is Estate Administration?
Estate administration is the process of managing and settling a person’s estate after they die. This can include:
- Finding and valuing everything they owned
- Paying off any debts or taxes they owed
- Making sure the remaining assets go to the people (or organizations) named in the will—or, if there’s no will, to the heirs according to Indiana law
The person in charge of this process is usually called the executor or personal representative.
Step-by-Step: How Estate Administration Works in Indiana
- Locate the Will (If There Is One)
If the person who passed (called the decedent) left a will, it needs to be found and filed with the probate court in the county where they lived. The will names the personal representative and says who should inherit what.
If there’s no will, Indiana law decides who inherits the estate. This is called intestate succession.
- Open the Estate with the Probate Court
The executor or another interested person (like a family member) files a petition to open the estate in court. Once the court approves, they officially appoint someone to handle the estate—this is the personal representative. Once the estate is opened then a tax id (EIN) is obtained and an estate banking account is opened. The estate bank account is where deposits will be made and expenses paid.
- Notify Heirs and Creditors
The personal representative must let certain people know that the estate is open. This includes:
- Heirs and beneficiaries (people named in the will or who inherit under Indiana law)
- Creditors (people or companies the decedent owed money to)
Notice is published in a local newspaper, which starts a clock ticking for creditors to make claims—usually within 3 months. In addition, Indiana law requires the personal representative to give direct notice (via mail) to known or reasonably ascertainable creditors.
- Inventory the Assets
The personal representative creates a list of everything the decedent owned at the time of death—homes, cars, bank accounts, investments, personal belongings, and more. The personal representative will obtain values for each item (usually done by appraisals, date of death bank balances, investment statements,…). Secured debts on real estate are also listed. Once everything has been accounted for and valued, this list is called an inventory, and it’s usually filed with the court or a notice is filed with the court stating the inventory has been completed.
- Liquidation of Assets
In many estates, some or all of the assets are liquidated. Investment accounts, real estate, personal property and other assets are sold and the proceeds added to the estate bank account
- Pay Debts and Expenses
Before anything is given to heirs, the estate has to pay:
- Funeral costs
- Outstanding bills or credit card debt (provided they file a claim within the timeframe allowed)
- Any final income taxes
If there isn’t enough money in the estate to pay everything, Indiana law sets rules for who gets paid first.
- Tax Returns
Final individual income tax returns for the decedent will need to be completed and taxes paid for both federal and state. Additionally, estate fiduciary income tax returns for both federal and state will need to be prepared and filed. For the fiduciary income tax returns, no tax is paid, but each residuary beneficiary will receive a K-1 that will be reported on their individual income tax returns.
- Distribute the Remaining Assets
Once all debts and taxes are paid, the personal representative distributes what’s left to the heirs or beneficiaries, according to the will or Indiana law. This might mean transferring a house, closing bank accounts, or selling property and splitting the money.
- Close the Estate
After everything is finished, the personal representative files a final report with the court and asks to close the estate. Once the court approves, their job is done.
A Few Tips
- Not all estates go through full probate. Some small estates (under a certain value) can use simplified procedures.
- Some assets don’t go through probate at all. These include things like life insurance with a named beneficiary, jointly owned property, and retirement accounts with a designated heir.
- Being a personal representative is a serious job. It comes with legal responsibilities. If you’re not sure what to do, it’s a good idea to talk with an estate attorney.
Final Thoughts
Estate administration can feel like a lot to handle—especially when you’re grieving. But understanding the steps makes it easier to take one thing at a time. Whether you’re planning ahead or dealing with a recent loss, a knowledgeable Indiana attorney can help guide you through the process and make sure everything is done right.
If you have questions about estate administration or probate in Indiana, don’t hesitate to reach out. Helping families through this process is what our firm does every day.