✩ FAQ: What Does an Executor Do?

Posted: October 3rd, 2007 by Gaslowitz Frankel LLC

An executor is the person named by the creator of the will (the testator) to carry out the provisions of the will. Any person over the age of eighteen and not a convicted felon may be named as an executor. Family members and close friends are often named as executors.

The executor must be capable of performing all the duties required of him or her under the will and in accordance with the state’s probate process. The executor owes fiduciary duties to anyone who has an interest in the estate, and the executor must act in the best interests of the estate. For example, if an executor mismanages the estate assets, he or she can be held personally liable and may have to repay the estate for any losses. If a person cannot serve or refuses to serve as executor for any reason, the probate court generally will appoint another person to administer the estate.

The executor has many responsibilities, including:

  • Locating documents left by the testator, such as will, trusts, and deeds;
  • Initiating the probate of the will;
  • Notifying Social Security, pension providers, insurers, financial institutions, and other entities of the death of the testator;
  • Collecting, inventorying, and if necessary, appraising the estate assets;
  • Collecting debts owed to the estate;
  • Paying claims against the estate;
  • Distributing the remaining assets in accordance with the terms of the will; and
  • Closing the estate.

Initiating Probate

If you are named as an executor of an estate, you should consult an experienced probate attorney to discuss the responsibilities you are expected to fulfill. An attorney will represent the estate during probate, explain the probate process, and delineate each of your duties. An attorney can obtain the required forms, such as a death certificate and original copy of the will. These forms are needed to probate the will and to notify Social Security and financial institutions of the decedent’s death. An attorney also can send notices of probate to interested parties, as required under the state’s probate code.

Inventorying Assets

An executor is responsible for marshalling all the assets of the estate, including the real and personal property of the decedent, for distribution according to the terms of the will. An executor must locate deeds to real property, gather assets in the decedent’s bank and investment accounts, and inventory the decedent’s personal property, including automobiles, furniture, and household items. If the decedent owned any personal property of value, such as jewelry or collectibles, the executor may have to arrange for that property to be appraised.

An executor also is responsible for preserving and protecting estate assets prior to the eventual distribution of those assets to beneficiaries. Preservation of estate assets can be accomplished through reducing estate taxes when possible and taking advantage of appropriate asset valuation techniques. An experienced attorney can assist the executor in implementing effective asset preservation and tax strategies.

Collecting Debts

The executor is responsible for identifying and collecting any debts owed to the estate. For example, an executor should check with the decedent’ employer to determine if any unpaid salary or benefits are owed. Any expenses of collecting debts owed to the estate, such as the costs of hiring a collection agency, are generally paid out of estate assets.

Paying Claims

The executor must pay all valid claims against the estate. Such payments would include taxes and creditor claims. An experienced probate attorney can assist an executor in filing an estate tax return.

Distributing Assets

Generally, the costs of probating the estate, including attorney’s fees, are paid by the estate out of estate assets before those assets are distributed to the named beneficiaries. After all debts are collected and claims are paid, the executor is responsible for distributing the remaining estate assets according to the terms of the decedent’s will.

Closing the Estate

When all of the estate assets have been distributed, the executor can close the estate. This generally involves giving the probate court evidence that all required notices of probate have been sent, all debts owed to the estate have been collected, all claims against the estate have been paid, and all remaining estate assets have been distributed in accordance with the provisions of the will.

When the probate court is satisfied that the estate is closed, it will release the executor from any further responsibilities on behalf of the estate.

Related News   Executor, FAQs, Probate and Estate Disputes, Testator, Will and Estate Disputes