Common Mistakes People Make When Handling a Deceased Family Member’s Estate

Managing a family member’s estate can be an emotionally and logistically complex process. From clearing out personal items to navigating legalities, many find it challenging to make well-informed decisions during such a difficult time. Here are some common pitfalls and tips on how to avoid them.

1. Going Through Possessions Piece by Piece

 One common mistake is attempting to sort through each item as you go through the house. This method quickly becomes overwhelming and exhausting.

What to do instead: Designate boxes for personal correspondence, photographs, medical papers, and legal documents, then sweep through the house, gathering just these essentials. Later, you can sift through each box at a more manageable pace.

 2. Undervaluing Unfamiliar Items

 It’s easy to assume that certain items lack value, but some seemingly insignificant things may hold unexpected worth. For example, hobby equipment, art pieces, or collectibles may be more valuable than you think.

 What to do instead: Consult with an appraiser before discarding items or making assumptions about value. You may be surprised at the market worth of certain collectibles or vintage items.

 3. Overvaluing Items You’re Attached To

 Our emotional attachment to certain items can lead us to overestimate their market value. Just because you love a particular piece doesn’t mean it holds significant value for others.

 What to do instead: Set realistic expectations and work with an appraiser to get a true sense of an item’s worth. This objective insight helps in making informed decisions and avoiding disappointment.

 4. Overlooking the Attic and Basement

Attics and basements are often overlooked but can be treasure troves of valuable antiques, heirlooms, or collectibles. Even if the family has a modest background, these storage spaces sometimes hide valuable items.

 What to do instead: Be thorough when assessing the entire property. Items like old furniture, artwork, or historical keepsakes are often stored away and forgotten but may be worth a closer look.

5. Letting Vintage-Loving Friends Sort the Estate

While friends who enjoy vintage items may offer to help with the estate, they may lack the expertise to assess an item’s value accurately. This can lead to valuable items being donated or sold for much less than they’re worth.

 What to do instead: Consider a free consultation with an estate sale company. They can help you evaluate items accurately, ensuring that nothing of value slips through the cracks. Your friends can still help with other tasks, but it’s best to leave valuations to professionals.

 6. Selling to Dealers Instead of Collectors

 Selling estate items directly to dealers may seem convenient, but keep in mind that dealers need to make a profit and may offer less than the items are worth. End buyers, or collectors, are often willing to pay more since they don’t have a resale incentive.

 What to do instead: Where possible, seek collectors rather than dealers, especially for valuable collectibles like jewelry, coins, and stamps. This way, you may secure a higher price and honor your loved one’s possessions appropriately.

 7. Neglecting to Address Outstanding Debts

Handling the financial side of an estate isn’t just about selling valuable items; it’s also essential to address any debts left behind. Family members are generally not responsible for these debts in the U.S., but there are some exceptions, such as co-signed loans or cases involving the spouse.

 What to do instead: Confirm the estate’s debts and seek legal advice if necessary. Under most circumstances, debts should be settled using estate funds. However, in certain cases, family members may need to step in, especially if they have a legal role in managing the estate.

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