The Executor (Personal Representative or executrix (female 1)) person (or those selected) named in a will, chosen by the deceased to taken upon the administrating the provisions of the will regarding the estate. 2 The executor must be at least eighteen years or older, and no prior felony convictions. Most executors usually are lawyers, accountants or family member. 13 If the deceased does not have a will, courts appoint an administrator performing the same duties as an executor but may not be best educated or suited for this appointment, besides no knowledge how the deceased preferred to dispense assets to any heirs, when a will is not written. Also, when the deceased selects their own executor, person usually knows type of memorial services the deceased preferred. 17 The duties of the executor begin from the time of death until the last state and federal taxes are prepared and submitted. Also, executor responsibility includes accounting assets in the estate, and final distribution to the beneficiaries. One or more
Co-Executors of the Estate maybe selected such as a certified public accountant, lawyer or financial advisor to help guide the executor through the process. In the Will of the deceased a Successor Executor is named, if the original nominee unable to take upon the responsibility or predeceases the deceased. 2 During the time the Will is prepared, named as executor and successor (Use full legal names recognized rather than a nickname or abbreviations 12) should be notified. Anyone or both may choose to accept or decline the duties and legal liability of responsibilities. 3
An executor has legal fiduciary responsibility: “You must act with utmost honesty, impartiality, and scrupulousness on behalf of the deceased and the estate’s beneficiaries.” Besides overcoming emotion loss of a loved one, should not interfere making rational decisions.16
The executor(s) of an estate undertakes tasks hours, days, weeks, months or years to complete. The responsibilities include: Chronologically first order of business probates the will. A probate court validates the will by issuing a document called letters of testamentary, unless someone presents to the court objections. 7 The court recognizes the executor (also, bank or organization has been appointed as executor or administrator of an estate 8) performs his or her duties under the provisions stated in the will and by state law. 4 The letters of testamentary provides proof the executor(s) empowered discharge appointed responsibilities. 7 An inventory and possible appraisals are necessary, determine the value of assets in the estate, besides any account payables or bills to be paid. 3 From personal experience, a checking account should be established for the estate. Any income from the estate and proceeds from assets sold and other bank accounts closed and financial accounts closed would be deposited into this account. Executor would pay from estate account: Bills, expenses or operating expenses of the decease’s ownership of a business or practice. Expenses include funeral costs, besides accountant and legal fees. The executor is responsible for an accountant to file federal estate income tax returns and any local income returns each year, until the last tax return is filed, besides signing any checks for tax collection. If federal estate income tax return is filed late or inaccurate, the executor maybe held liable for any penalties. 3 Before distribution made to heirs of the estate according to the will, the executor responsible to pay expenses regarding attorneys, accountants, appraiser’s fees and any other expenses.4 The executor responsible to locate and notify all heirs regardless where anyone may live, besides paying any cost to locate the heirs and devote any amount of time. Death certificates are necessary for the executor to obtain. 5 A physician or coroner issues a death certificate, validate the cause of death and identify the deceased. 6 This legal document necessary for many purposes: Providing banks or financial institutions were the deceased held assets, order to liquidate or transfer such assets and obtain assets of the deceased held by anyone or non-financial institutions. If the deceased had any children and pets, the executor would be responsible arranging care and placement according to the wishes in deceased will. However, if the will did not specify care and placement of the children and pets, a court might have to be involved in the placement. Until such time, the executor would be responsible for the care of the children and pets.5
An executor may request payment for services from the estate. But, the request must be approved by probate court under reasonable circumstances and exact amount paid regulated by state law. Also, the amount paid depends upon the value of the deceased personal property or estate. However, an executor such as a relative or close friend, inheriting a large amount, commonly does not request payment for services rendered. 14
Under State law creditors make claims against the estate within a specified amount of time. If an executor cannot valid a claim or unsure of the validity of the claim, can seek guidance from the court. According state law, if an estate is insolvent meaning the decedent’s debts are more than the value of assets, the executor pays higher ranked creditors first. “If an executor pays a lower-ranked creditor before a higher-ranked creditor, the executor will be liable for the difference.” 10
A Closing Letter from the Internal Revenue Service to the executor discloses all federal estate taxes have been paid. Then the executor may proceed with distributions to the beneficiaries. 10 When the final estate tax return is filed and has no errors or special circumstances, the closing letter should arrive approximately four to six months. 11
Advisable for anyone listed as an executor of a will, knowledgeable as to the location of physical assets and current expenses, prior to death, expedites the procedures upon execution of the will. Otherwise hidden assets may take days, weeks, months or years to locate besides attributing additional costs. Also, if expenses are not paid on time soon after death, interest or late fees may incur additional cost to the estate, such as property taxes. 9 Finally executor should be advised where the will is stored or preferable have a copy.15
1) Executor http://en.wikipedia.org/wiki/Executo
2) Executor of Estate http://www.trustguard.org/Services/executor_of_estate.htm
3) Being the Executor of an Estate http://retireplan.about.com/od/estateplannin1/a/executor_tasks.htm
4) Executor Duties and Responsibilities http://www.njlaws.com/executorduties_&_responsibilties.htm
5) Being the Executor of an Estate http://retireplan.about.com/od/estateplannin1/a/executor_tasks.htm
6) Death Certificate http://en.wikipedia.org/wiki/Death_certificate
7) letters of testamentary http://www.answers.com/topic/letters-testamentary?cat=biz-fin
8) letters of testamentary http://www.investorwords.com/2778/letters_testamentary.html
9) Readers: The Burden of Being an Executor http://biz.yahoo.com/wallstreet/071007/sb119170096897751287_id.html?.v=4
10) Probate and the Executor of a Will
http://militaryfinance.umuc.edu/estate/estateplan_probate.html
11) Estate Tax Questions
http://www.irs.gov/businesses/small/article/0,,id=108143,00.html
12) LAST WILL AND TESTAMENT http://www.courttv.com/archive/legalcafe/family/wills/will_sample.html
13) Executor http://www.investopedia.com/terms/e/executor.asp
14) Choosing an Executor FAQ http://www.nolo.com/article.cfm/objectID/42421CCD-3B85-418C-82FA4C595A87D441/309/298/FAQ/
15) Estate Planning Guide http://www.buildawill.com/ep_5_exec.php
16) How to Handle the Challenge of Being an Estate Executor http://www.toalfinancial.com/executor.php17) The Executor http://www.mackenziefinancial.com/en/pub/tools/tax_estate/estate/executor.shtml
