When someone passes away, in their will, they’ll name an executor. This refers to a trusted person responsible for carrying out the deceased’s final wishes and managing the legal and financial affairs of the estate. While it’s an honor to be chosen, the role of executor comes with a wide range of responsibilities, many of which are time-sensitive and legally binding as a probate lawyer knows all too well.
So, if you’ve been named as an executor or are planning your own estate and considering who to appoint, understanding what this role involves can help ensure the estate is handled correctly and by the law.
What Is An Executor?
A person or institution named in a will with legal authority to administer the estate of the deceased. If there’s no will in existence, the court will appoint an administrator instead, and the duties are essentially the same.
Executors are considered fiduciaries, meaning they are legally obligated to act in the best interest of the estate and its beneficiaries. Failing to carry out these duties correctly can lead to personal liability or disputes among heirs.
Responsibilities Of An Executor
As our friends at Vayman & Teitelbaum, P.C. can share, the executor’s job includes diverse, detailed tasks, such as:
- Filing The Will With The Probate Court: First, the will must be located and filed with the appropriate court to begin the probate process.
- Notifying Beneficiaries And Heirs: The executor must formally notify everyone named in the will, along with any potential heirs who may have a claim under state law.
- Inventorying The Estate: The assets owned by the deceased must be located, documented, and held. These could be real estate, bank accounts, investments, personal property, and business interests.
- Managing And Protecting Assets: The executor must ensure the estate’s assets are safeguarded during the probate process. Meaning, maintaining insurance, securing property, or managing investments.
- Paying Debts And Taxes: Before distributing anything to heirs, the executor must use estate funds to pay outstanding bills, loans, and taxes. This includes filing the deceased’s final income tax return and possibly an estate tax return, depending on the estate’s size.
- Distributing Assets: Once all obligations are met, the remaining assets are distributed to the beneficiaries according to the will.
- Finalizing The Estate: The executor files a final accounting with the court, ensuring transparency and accuracy before the estate is closed.
Who Should Serve As An Executor?
It is usual to choose a close family member, such as a spouse or adult child, as their executor. However, it’s crucial to select someone responsible, organized, and capable of handling financial and legal matters. Some people prefer to name a professional executor, such as an attorney or trust company, particularly if the estate is large or complex.
If no executor is named or willing to serve, the court will appoint someone to manage the estate.
Can Executors Be Compensated?
Yes. Executors are typically entitled to reasonable compensation for their time and effort, either as specified in the will or as allowed under state law. The exact amount depends on the size and complexity of the estate.
Being an executor is a serious commitment, and having the proper legal support can make the process much smoother. Whether you’re preparing your will or have been named as an executor,a lawyer will be there to help. Contact a client coordinator today and schedule a consultation to get the professional guidance you need to fulfill your role with confidence.