Responsibilities of an Executor of an Estate
Having the responsibility of a deceased’s property is a big thing to take on, especially during such emotional times. Here are some helpful tips which can make the process run more smoothly.
You are entitled to an attorney
Most of the time your loved one will have an attorney who has drafted their estate documents, so you should start by contacting that attorney. They can tell you what your duties will be and also help you file any necessary paperwork. If you do not know or cannot contact the attorney originally used, reach out to an attorney who can help you through the process. An attorney will know the probate laws for your state and can help you as the executor.
You have a fiduciary responsibility
You have the responsibility of your loved ones’ financial interest. So whatever is expressed in their will should be followed. You will need to notify creditors, banks and other financial obligations of the death of your loved one. Make sure to cancel credit cards, subscriptions, recurring payments and let the Social Security Administration know they are no longer living. You are responsible for getting all of the money they owed settled. If this is a problem, you can get a probate attorney to help negotiate debt forgiveness.
Securing and appraising assets
Just because your loved one left you a home doesn’t mean you immediately become the rightful owner. As the executor , you will need to make sure all debts are paid before you distribute anything. Before you sell a loved one’s home, you should have it appraised so you can have a document of the value of the home.
Pay the debts, bills and taxes
Open a separate bank account and put all the funds there so you can make payments out of that. It will be easier to keep track of all transactions associated with the estate. Make sure that all those owed are paid in full before you hand out anything to those that inherited.
Keep beneficiaries in the loop
As soon as you are able, meet with the beneficiaries to explain what all is involved and give them a good time table. You will want to include the attorney so they can outline the will. You want to document everything so that you have a record when you start to hand out payments. You do not want any misunderstandings between you and any of those inheriting.
Work with a finance professional
When dealing with the finances it is a good idea to hire a skilled accountant. This way you know the taxes will be correct as well as all the payments. They can also advise you on ways to keep the estate solvent while you are working with the estate.
Remember being named the executor of the estate can be overwhelming but with these tips and professionals in your corner, you can get the job done. The IRS will need to have paperwork filed stating that you are no longer the fiduciary for the estate.