What to Do If You Are Named Executor

There is a good chance that, if you haven’t already, you will be named as the executor of a will by a family member or perhaps by a friend who trusts you over their family members. While there is nothing you need to do while the person is alive, it would be essential to have a grasp of the duties and responsibilities of an executor when the will needs to be executed. In some situations, they can be reasonably straightforward. However, some wills can be complex, requiring more time and attention. Here is a checklist you might follow as the executor of a will:

Determine if probate is necessary

Probate is a legal proceeding that occurs at the county or state level to prove the will and authorize the executor to distribute assets as stipulated in the will and pay any outstanding debts and taxes. Depending on the size of the estate and complexity of the will, it can be a slow and expensive process, though many states have streamlined the process.

However, not all assets need to be probated. Assets held as joint tenancy or community property, such as real estate, can pass outside of probate, as can assets with named beneficiaries, such as trusts, life insurance proceeds, retirement plan accounts, bank accounts, and securities accounts.

Generally, any assets titled solely in the descendant’s name or that don’t pass automatically by law are probate assets. In addition, any assets payable to the decedent’s estate may also be probated.

Determine if you need a lawyer

In most cases, the execution of a will is straightforward. However, it may be a good idea to hire an estate attorney for large estates with different types of real estate properties or significant tax liabilities. You may also want an attorney on hand if you expect any disputes among beneficiaries.

It might be a good idea to have an estate attorney help guide you through the process and answer any legal questions that come up. You may need an attorney to research or review documents before you file them. Attorney fees can be paid with assets available in the estate.

If you don’t want to hire a lawyer

There are a lot of resources available to you through the court, and there is no shortage of books on the subject. One of the better ones is The Executor’s Guide: Settling a Loved One’s Estate or Trust by Mary Randolph. In most cases, you can call a probate court clerk to answer basic questions about court procedure. You might also get access to a staff lawyer who will review your probate documents. While they won’t provide legal advice, they can help you correct any errors.

File the will and notify the beneficiaries

The is filed at a local probate court that must confirm you as the personal representative. Then send notice of the probate proceeding to beneficiaries named in the will.

Locate and manage probated assets

All non-probate assets will pass to beneficiaries automatically, so there is nothing for you to do. However, if there are probated assets, such as real estate or securities not held as joint tenants, you need to locate them and take over their management during the probate process, which can last from several months to more than a year. Depending on the financial condition of the estate – if there are taxes or debts to be paid – you may need to sell some assets.

Take care of administrative issues

You will need to take over the day-to-day administrative needs of the estate, such as notifying banks and government agencies (i.e., Social Security, Department of Veterans Affairs, Medicare, post office, etc.). Any leases or contracts will need to be terminated.

Set up a bank account for the estate

If the deceased is still owed money, such as employment earnings or stock dividends, you will need to set up a bank account to hold the funds until they can be distributed.

Pay expenses and taxes

Any ongoing expenses will need to be paid. This could include mortgage payments (or lease payments until the lease can be terminated), utilities, and homeowner’s insurance. You will also need to file a final income tax return and pay any taxes owed. If the estate is large enough (more than $5.6 million as an individual or $11.2 million as a married couple), you may be required to pay estate taxes, and for that, it is advisable to hire a tax professional.

Notify creditors and pay outstanding debts

You may have already paid off credit card bills or personal loans, but you still need to notify creditors of the probate proceeding, who will then have four to six months to file a claim for unpaid debts. It is then your responsibility to determine if a claim is valid.

Distribute assets

After the government and creditors have been paid, you may then oversee the distribution of assets to beneficiaries named in the will. This will likely consist of cash, securities, real estate, and personal belongings.

Contact probate court to close the estate

When everyone has been paid as required by law and all the assets have been distributed to beneficiaries, you can ask the probate court to officially close the estate.

As you can see, being an executor is no small job. Of course, it is an honor to be asked, but if you think you won’t have the time or capacity to fulfill all the obligations, you should let the person know so that he can name another executor. Or, if a successor is named, you could step down and allow that person to serve. If you decide to serve, having a grasp of the duties and responsibilities ahead of time can help to make it less overwhelming.