Following the death of a loved one, there may be fear and uncertainty about what to expect. However, needs must be attended to on behalf of the deceased. Specifically, an estate executor must be appointed to carry out essential responsibilities for the decedent’s estate.
It is important to note that if you are named executor of a will you are not legally required to carry out any tasks. An executor is liable for any mismanagement of an estate. The position may not be suitable for everyone.
The following are some of the primary responsibilities of being the executor of a will.
Obtain the Death Certificate and the Latest Version of the Will
One of the first steps, which can be easily overlooked, is to obtain a death certificate. Also, you must have the most updated version of the will and understand it completely. Finding and familiarizing yourself with all appropriate documentation will save you time and energy as an executor.
Submit the Will to Probate Court
The majority of wills must be filed in probate court. Probate is used to determine the validity of the will and to officially appoint the executor. The process and cost vary by state and the complexity of the will. The will must be filed for probate in the state in which the decedent lived (e.g., had their permanent residence, paid taxes, etc.).
Sort Out Finances
The executor must sort out the decedent’s final finances. First, any costs incurred as a result of the deceased, such as funeral and burial charges, will be funded from the estate. Second, the executor must pay off any existing debt or balances due for the decedent and pay any applicable state and federal taxes due on the estate.
Alert Appropriate Agencies
It would help if you alerted all appropriate agencies, including government bodies, about the death. You will need to stop all
mail to the decedent, close credit cards, and perform other similar tasks. To have legal authority over the decedent’s affairs you will need a death certificate and proof of executorship.Represent the Estate
As executor of the will you are legally responsible for the decedent’s affairs. However, hiring an attorney to seek counsel on decisions and procedures you may be unfamiliar with may be wise. This will ensure that you are adequately prepared for any duties required to perform as executor.
Be Fair and Impartial
Family members and other heirs may have conflicting wishes regarding asset distributions and other matters about the will. While it may sound easy in theory, being fair and impartial when it comes to handling the estate’s affairs is critical. Keeping the best interests of all parties in mind is necessary both legally and to maintain personal relationships. Some estate disputes m
ay only be resolved for a while and could ultimately result in hefty legal fees and damaged relationships. It is in everyone’s best interest if the estate is handled in a way that limits and quickly resolves conflict.Take Inventory of All Assets
As executor, you are responsible for taking inventory of all the estate’s assets. This includes large assets such as houses and automobiles, as well as household items, bank accounts and lock boxes. Consider hiring an appraiser if the estate is large as this could significantly impact taxation and cost-basis values.
Consider Proper Compensation
Given the stress, time, and energy of being the executor of a will, collecting compensation for your work is permissible. Remember that your compensation may vary based on the estate size, is subject to court approval, and must be claimed as income.
While the responsibilities of an executor of a will might be stressful, it is an honor to represent an estate on behalf of a decedent and to provide stability and strength in a time of grief and uncertainty. Be careful not to rush, skim over, or skip any steps as there could be legal repercussions for any mismanagement of the estate. It’s recommended to speak with a licensed attorney to discuss your (or your families) estate planning needs.
Jasper Smith is the founder of The #BuildWealth Movement®. He’s worked in the financial services industry for over 15 years and holds a life insurance license, multiple securities licenses, and the Certified Retirement Counselor (CRC®) designation.
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