An executor (referred to as an administrator if there’s no will left behind) manages the estate and carries out the wishes of a deceased person. Here’s a deeper look at what they do.
At the most basic level, an executor of an estate is responsible for carrying out the wishes of the deceased. In practice, the executor’s duties involve making sure all of the estate’s debts are paid and that the remaining assets are distributed in accordance with the deceased’s wishes (or, if there’s no will, then in accordance with state law).
Some people believe that an executor has to be an attorney or family member, but in reality, an individual can name anyone they choose to be their executor. The executor is expected to handle the estate’s affairs with honesty and diligence. In legal terms, they have a fiduciary duty to the estate, meaning they’re responsible for caring for the estate as if it were their own.
While executors are not entitled to proceeds from the estate, some states allow executors to receive a small amount of compensation for their work. Here are the specific sevenfold duties of an executor:
1. Opening probate with the court. In most instances, an executor will need to file a petition for probate with their local probate court to be officially appointed and recognized as executor. Oftentimes, courts have simplified procedures for smaller estates.
2. Locating the deceased’s assets. Not everyone keeps clear, organized records detailing what and where their assets are. There may be a little detective work needed on the executor’s end to piece together a coherent, complete asset profile, like tracking down investment accounts, safety deposit boxes, etc.
3. Providing notice to heirs and interested parties. Interested parties are usually considered to be the following: immediate family members, general designated heirs, and creditors. Keep in mind that courts often have very specific requirements about how this notice should be provided.
An executor has a fiduciary duty to the estate, meaning they must care for the estate as if it were their own.
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4. Managing the administration of the estate. While the probate process is ongoing, the executor may be responsible for things like the continuation of mortgage payments, the closure of credit cards, and notifying the Social Security Administration of the deceased’s passing.
5. Paying the deceased’s debts. These include funeral expenses, taxes, and annual tax filings. These must be paid before any heirs can receive funds.
6. Distributing the remaining funds and/or the property. Once those debts are taken care of, the executor disperses the funds in compliance with the will.
7. Closing the estate. After the executor has taken all the necessary actions (keeping thorough, accurate records of those actions throughout the process), they must notify the court of their status.
We’ve tackled the requirements of an executor as determined through the law, but many will find that it’s the unnamed duties of an executor that can present a real challenge; managing the emotions of family members and contending with all of the information they’ve discovered about the deceased also requires diligence and finesse.
If you have a specific executor-related issue you need help with, please leave a comment. As always, feel free to reach out with any real estate questions as well. I’d be happy to hear from you and lend assistance.
