Do you know the duties of an executor?

After the death of a loved one, there will be fear and uncertainty about what to anticipate. However, needs have to be met on behalf of the deceased. Specifically, an executor have to be appointed who will perform the basic duties related to the deceased’s estate.

It is significant to keep in mind that if you are appointed as an executor, you aren’t legally required to perform any tasks. The executor is accountable for any mismanagement of the estate. This position might not be suitable for everybody.

The basic duties of an executor are outlined below.

One of the first steps that will be easily missed is obtaining a death certificate. In addition, you will need to have the most up-to-date version of the will and fully understand it. Locating and reviewing all of the relevant documentation will save you time and energy as the executor.

Most wills have to be filed with a probate court. Probate is used to find out the validity of the will and officially appoint an executor. The process and costs vary depending on the state and the complexity of the will. The will have to be filed with the probate court in the state where the deceased lived (e.g., had a everlasting residence, paid taxes, etc.).

The executor must sort out the final funds of the deceased. First, any expenses incurred in reference to the deceased, comparable to funeral and burial costs, might be paid from the estate. Second, the executor must pay any existing debts or balances owed to the deceased and pay any applicable state and federal taxes owed by the estate.

It would help if you notified all the appropriate agencies, including government authorities, of the death. You might want to stop all correspondence with the deceased, close bank cards, and perform other similar tasks. To have legal authority over the deceased’s affairs, you will need a death certificate and proof of an executor.

As an executor, you are legally accountable for the deceased’s affairs. However, it may possibly be clever to rent a lawyer to advise you on decisions and procedures that you might not be accustomed to. This will be certain that you are adequately prepared for any duties required of you as an executor.

Family members and other beneficiaries can have conflicting wishes regarding the division of assets and other matters related to the will. While this may increasingly sound easy in theory, being fair and impartial in terms of managing the estate is crucial. Keeping the best interests of all parties in mind is vital each legally and with a view to maintain personal relationships. Some estate disputes may only be resolved for a short while and should ultimately end in high legal costs and damaged relationships. It is in everyone’s best interest that the estate is managed in a way that limits and resolves conflicts quickly.

As executor, you are accountable for taking inventory of all of the estate’s assets. This includes large assets comparable to homes and cars, in addition to home items, bank accounts, and safety deposit boxes. Consider hiring an appraiser if the estate is large, as this could significantly impact tax treatment and value basis values.

Given the stress, time and energy of being an executor, it is appropriate to receive a salary in your work. Remember, your salary may vary depending on the size of your estate, is subject to court approval and have to be considered income.

While the duties of an executor will be stressful, it’s an honor to represent the estate on behalf of the deceased and supply stability and strength during a time of grief and uncertainty. Be careful to not rush, skip, or skip any steps, as any mismanagement of the estate can have legal repercussions. It is beneficial that you speak with a licensed attorney to debate your (or your loved ones’s) estate planning needs.

Jasper Smith is the founder of The #BuildWealth Movement®. He has worked in the financial services industry for over 15 years and holds a life insurance license, multiple securities licenses, and the Certified Retirement Counselor (CRC®) designation.