What Is an Executor?
An executor is an individual with the legal responsibility to distribute the assets and administer the remaining financial obligations of a deceased person.
Executors are usually named in the deceased person’s will. They are mostly the immediate family members of the deceased person, such as surviving spouses, children, and parents.
What Does an Executor Do?
An executor carries out the following duties:
- Takes charge of the entire estate administration process
- Probates the Will
- Collects the decedent's assets that pass under the Will
- Pays the decedent's debts, administration expenses, and estate taxes
- Manages and invests the estate's assets
- Provides for the management of any real estate during the estate administration process
- Disseminates the asset remains per the terms in the Will once all of the bills and taxes have been paid
- Finds out if any pledges or agreements made during the decedent's life are binding and ensures that the estate follows them
- Takes action if there are questions regarding the enforceability of such agreements or the terms of the Will before letting the judge decide
- Provides accounts to the beneficiaries for every asset collected, income received, all gains, all losses, and all paid-out or distributed property
What Can’t an Executor Do?
An executor cannot:
- Do such things that are not in the estate's best interest
- Make changes to the Will
- Change the beneficiaries named in the Will
- Act outside of the scope of what is laid out in the Will
- Override the Will by refusing to pay legitimate creditors or withholding the inheritance of a beneficiary
- Sell the assets of the estate for less than market value
- Co-mingle their own assets with the assets of the estate
- Fail to do anything on the executor’s to-do checklist unless it doesn’t apply
Primary Duties of an Executor
An executor's primary duties depend on state law and the complexity of individual estates. As such, the duties include:
Notifying Relevant Parties
The bank, loan, and credit card companies, utility companies, and government agencies of the deceased are among those who must be contacted by the executor.
Finding the Will and Filing It With the Probate Court
The executor must locate the Will, and it is the duty of an executor to file a petition with the court to open probate. Typically, a simplified probate process is still required in filing, even if some assets are directly passed to the beneficiaries.
Creating a Bank Account for the Estate
The executor must open a bank account in the estate's name to facilitate paying debts and taxes and manage other financial matters related to administering the estate.
Locating and Maintaining the Decedent's Assets
The executor is responsible for taking inventory of all the assets in the estate and keeping track of them during the probate process.
Identifying and Locating the Beneficiaries
The executor must identify and locate all the beneficiaries named in the Will so they can be notified of their inheritance.
Getting a Federal Employer Identification Number for the Estate
The executor may need to obtain a federal employer identification number for the estate to open a bank account or handle other financial matters related to the estate.
Settling the Estate's Debts and Taxes
The executor is responsible for notifying the decedent's creditors of the death and paying any outstanding debts and taxes owed by the decedent or the estate. It includes filing and paying any required income taxes and any estate taxes that may be owed.
Distributing the Property According to the Will
Once all debts, taxes, and expenses have been paid, the executor is responsible for distributing the estate's remaining assets to the beneficiaries according to the provisions of the Will.
If no will has been made, the executor is responsible for distributing the estate assets according to state law.
Representing the Estate in Court
The executor may be required to appear in court on behalf of the estate to resolve any legal issues that arise during the probate process.
Key Takeaways
An executor is someone responsible for carrying out the decedent's wishes and administering the estate. This person is named in the Will.
The duties of an executor can be complex, so it's important to choose someone you trust to handle this responsibility. It would be better if you also considered whether they have the time and ability to take on this role.
If you have any questions about executors or the probate process, be sure to consult with an experienced estate planning attorney.
FAQs
1. Who can be an executor?
In most states, an adult can be an executor if they are not named in the Will as a beneficiary.
2. Can an executor be held liable for the debts of the decedent?
No, an executor cannot be held liable for the debts of the decedent. The executor is only responsible for paying the debts from assets in the estate.
3. Can an executor be removed?
Yes, the court can remove an executor with just cause, such as fraud or misconduct.
4. What is the difference between an executor and an administrator?
An executor is a person who is named in the Will, while the court appoints an administrator.
5. Do I need an attorney to be my executor?
No, you do not need an attorney to be your executor. However, you may want to consider hiring an attorney to help you with the more complex aspects of the job.
