Phase Three: Asset & Liability Management
Now that you have uncovered the assets and liabilities of the estate, you will need to take some steps in order to carry out the tasks associated with the findings. Phase Three is where the management of the assets and liabilities takes place. Tasks such as determining value, transferring, retitling, managing, and preserving the assets, as well as paying off any debts or liabilities all take place in Phase Three.
One important task to make note of is determining the value of an asset. In order to do so, one must order a qualified appraisal as determining the value of the asset will be needed for tax and distribution purposes. You can read more about the importance of qualified appraisals here.
Phase Three is where the bulk of the work and task completion happens in an estate administration. This is the phase where the work will occur to essentially remove the decedent's name and ownership of an account, property, etc to either another individual or to close out completely. Phase Three, depending on the assets and liabilities of the estate, may also include; selling real estate, collecting rent, or liquidating investments. Additionally, in Phase Three it is important to settle any disputes over the assets and liabilities of the estate, and negotiate with creditors and other parties to resolve outstanding debts.