An executor is the person responsible for settling a deceased person’s estate. Executor duties include inventorying, appraising and distributing assets; paying taxes; and settling debts owed by the deceased. As executor, you are legally obligated to act in the interests of the deceased, following the wishes expressed in his or her will. If all this sounds a bit overwhelming, keep in mind that you can hire professional help—for example, an attorney to help with the probate process or an accountant to file taxes.
Who Can Be an Executor?
In most states, any person over the age of 18 who hasn’t been convicted of a felony can be named the executor of a will. Some people choose a lawyer, accountant, or financial consultant because of his or her expertise. Others choose a spouse, adult child, relative or friend, especially if the estate is small. Generally, a family member or friend expects little or no pay for settling the estate and is anxious to get things settled quickly and smoothly. Being an executor can be a lot of work. You have to follow up on many details and may be called upon to help defend the terms of the will against squabbling heirs or unwarranted claims by outside parties. You also need to be able to act quickly in order to preserve the value of the estate. For example, taxes must be filed in a timely manner to avoid penalties.
Because of the many responsibilities involved, it’s wise to ask the person being named in a will if he or she is willing to serve as executor. If you’ve been named executor in someone’s will but are unwilling or unable to serve, you need to file a declination, a document declining your designation as executor, with the court. The contingent executor named in the will then steps in. If no contingent executor is named, the court will appoint one.
Responsibilities of an Executor
An executor’s first duty is to initiate probate, the formal process of proving the authenticity of the deceased person’s will and confirming your assignment as executor. You’ll need to file an application to appear before the probate court. The application form is available from the clerk of the probate court (found in the government listings of your local telephone directory). To help you perform your duties, you may want to consult an attorney. Attorney’s fees are generally chargeable to the estate as expenses of administration. Next, you need to notify all parties named as beneficiaries that you have applied to the court to process the will.
When you appear in probate court you’ll need the original signed will and a certified copy of the death certificate. You should also be prepared to pay court costs, which are chargeable to the estate. The job of the probate court is to decide the validity of the will, generally a routine affair. This is also the time when parties may challenge or contest the will. A person who challenges a will, or part of a will, must file an objection with the court within a specified amount of time (check your state laws). Challenges to wills can be time-consuming and costly to the estate.
Once the will is determined to be valid by the probate court, you may begin to pay taxes and other claims against the estate and distribute assets to the beneficiaries. If the will is found to be invalid, you must proceed as though there was no will. An administrator will be appointed by the appropriate court to handle the estate. Creditors and taxes must be paid, after which the remainder of the estate, if any, is distributed in accordance with state law.
Your last step is to finalize the estate by filing papers with the probate court. This usually involves providing the court with copies of notices to concerned parties, tax returns and bills paid. The executor must also provide evidence of distribution of the remaining assets, such as signed receipts from the beneficiaries. When the court recognizes the completion of the probate process, you are released from further responsibility as executor.
