Losing a loved one can be an extremely tough time; unfortunately, it’s during these trying times that practical matters demand attention as well. It falls upon the executor of the estate to handle the necessary tasks of settling the departed individual’s affairs. It’s not an easy role to undertake, especially when emotions are running high.
Read on as we go over the responsibilities and duties of an executor and shed light on the important role they play in managing and distributing the assets of the deceased.
An executor is a person who is designated in a will or who is chosen by a court to manage a decedent’s estate. The appointment of an executor is typically outlined in the deceased’s will, and if a will is not present or does not name an executor, the court will appoint one. When it comes to choosing an executor, you can choose a family member, a friend, or even a professional such as an attorney or a bank.
An executor is in charge of locating, securing, and managing the deceased person’s assets. To do this, they need to gather documents such as the will, financial records, insurance policies, and property deeds. The executor then has to conduct a thorough inventory and valuation of these assets. This could include—but is not limited to—real estate, bank accounts, investments, vehicles, personal belongings, and more. This step ensures an accurate understanding of the estate’s overall value and forms the basis for subsequent actions.
The executor is responsible for notifying creditors and beneficiaries of the deceased’s passing. This involves identifying and contacting all known creditors to settle outstanding debts, as well as informing the beneficiaries named in the will about their entitlements. Simply put, the executor must get in touch with anyone who needs to be informed about the deceased’s passing.
Probate is another name for the legal process by which a deceased person’s assets are distributed. The executor has to file the necessary legal documents with the probate court, attend hearings, and make sure that all legal requirements are met. To make this process easier, consider working with attorneys, accountants, and other professionals if you have been named as an executor.
Another thing an executor needs to watch out for is settling any outstanding debts or taxes. Executors should work with financial institutions, government agencies, and other creditors to ensure that all debts are paid to complete this task. The executor is also responsible for filing the final income tax return on behalf of the deceased and addressing any estate taxes that may be applicable as well.
Once all debts, taxes, and expenses have been paid, the executor is responsible for distributing the remaining assets to the beneficiaries specified in the will or applicable state laws. This may involve selling assets, transferring property titles, or dividing financial accounts among the beneficiaries. The executor must ensure that the distribution is carried out fairly and in compliance with the wishes of the deceased.
Estate planning can be complex, but if you partner with the attorneys at KousLaw, you’ll be well taken care of. If you’re planning your will or have been named the executor of one, we can help.
Contact us to schedule a consultation today and get all of your questions answered.