Chosen when a will is written, the executor is legally obligated to carry out the intentions of the “testator” who made the will, as well as to adhere to all state probate protocols when closing out the affairs of the deceased. Typically, executors find themselves quite busy with their responsibilities, so the role should not be given or accepted lightly. Read on for an overview of executor responsibilities.
Resolving Debts and Distributing Assets
Upon the death of the testator, it is the first duty of the executor, who was named in the will, to file a copy of the will, along with the death certificate in probate court. From that point, the executor must follow all the public process of probate, ensuring that claims against the estate of the deceased are resolved, prior to distributing assets, in accordance with the terms of the will. Though technically anyone of sound mind and majority age can be designated as the executor of a will, it is wise to make sure the chosen executor is prepared to actually take on the responsibilities, as the role is far from ceremonial. Typically, close relatives or friends are appointed to the executor role, which is sometimes shared by more than one person. There is no law requiring an executor to be a relation, and it is possible to appoint a professional or institutional executor, which can be comforting depending on the circumstances. Ideally, when a will is written, a substitute is also designated in the event the named executor is ultimately unable to serve in the role. At Walkers, estate planning professionals Lucy Diggle and Thea Maitland underscore: “Executorship can be onerous and so each prospective executor should be consulted about the appointment and agree to act before being named in the Will.”
Though probate protocols vary a bit depending on the state or U.S. territory in which the deceased lived, the duties of executors typically involve the completion of these steps, in accordance with timeframes established by the court:
- Locating the testator’s Will and any other documents which may relate to the assets held in the testator’s individual name;
2. Notifying third parties such as the beneficiaries named under the testator’s Will;
3. Preparing a list of the testator’s assets and liabilities and hiring an appraiser to value the assets;
4. Keeping accurate records;
5. Paying any debts and liabilities such as funeral expenses, claims by creditors etc.; and
6. Distributing the testator’s net estate to the beneficiaries in accordance with his or her wishes.
It is important for executors to understand that in carrying out their duties, they are legally obligated to act in the best interests of the estate and its beneficiaries. Indeed, as the professionals at Walker explain: “An executor has a fiduciary obligation to act in the best interests of the estate and the beneficiaries named under the Will. The executor should exercise care and skill in administering the estate and should take steps to preserve the assets of the estate. A breach of these duties can result in a legal action being brought against the executor by the beneficiaries of the estate.”
Because of the fiduciary obligations involved, executors must be extra careful to avoid conflicts of interest as they settle the affairs of the estate. Given the trust placed in executors, probate courts frequently require a type of fiduciary bond known as an executor or estate bond. The purpose of this bond is to guarantee that assets will be properly handled in accordance with the estate plan, as well as state laws and protocols. Colonial Surety Company makes it quick and easy to obtain estate bonds of all kinds, including executor bonds. A user-friendly online service allows you to quote and obtain a bond that is instantly available to download or e-file. Fiduciaries in every state can efficiently obtain their estate or executor bonds right here:
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Good To Know: Obtaining Professional Assistance
Depending on the nature of the estate and affairs of the deceased, an executor may find themselves overwhelmed by their duties, especially since they occur during a time of grief. Executors are allowed to obtain legal advice, as well as the assistance of professionals who can assure that assets, such as the family home, are properly appraised and managed throughout the probate process. As long as the expenses incurred by the executor are reasonable and well documented, “they are payable out of the assets of the estate (and not personally by the executor).”
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