What to Know about Being an Executor of an Estate
Being the Executor, also known as a Personal Representative, of someone’s estate is quite the honor because it means that person trusts you. It can also be a complicated and time-consuming process that is often carried out amidst loss and grief. That’s why it’s important to consider what being an Executor involves.
As an Executor, you’re responsible for managing the deceased’s estate, including all of their assets, debts, and final expenses. We recommend creating a list of everything that needs to be done.
Gather all of the necessary information: locate all of the deceased's important documents, including their will, life insurance policies, and bank statements.
Notify all relevant parties: inform the beneficiaries, creditors, and government agencies of the deceased's passing.
Pay off debts: settle any outstanding debts the deceased had, including mortgage payments, credit card balances, and medical bills.
Distribute assets: distribute the deceased's assets to the beneficiaries as outlined in their will.
You may or may not be aware that you’ve been named as an Executor. If you’re fortunate enough to know this prior to the individual’s death, it’s advisable to sit down and have some important conversations which may help the process run more smoothly.
Talk with family members and other beneficiaries as well, if you are able to, which helps in establishing a working relationship prior to you acting as the Executor of the estate.
Despite your level of preparedness, there are still some potential pitfalls for which you should be prepared.
Time: Depending on the size of the estate and the complexity of the deceased's financial situation, being an Executor can be a time-consuming process. You may need to take time off of work or from other commitments to ensure everything is done correctly and in a timely manner.
Legal requirements: As an Executor, you'll need to follow all of the legal requirements outlined in the deceased's will and any relevant state or federal laws. Failing to do so could result in legal action against you.
Family conflicts: In some cases, being an Executor can create family conflicts. It's not uncommon for family members to disagree about how the deceased's assets should be distributed. As an Executor, it's your job to remain impartial and ensure everything is done fairly and legally.
Tax implications: Depending on the estate's size, significant tax implications may need to be addressed. It's essential to consult with a tax professional to ensure everything is handled correctly.
The good news is, you don’t have to do it alone. Legal help is available and encouraged to make sure everything is done correctly and as smoothly as possible. At Woods Fuller, we can help you through the entire process, doing as much or as little of the work as you would like. Our estate planning practice is here to assist.
