As an executor, you have a long list of duties and a fiduciary obligation to act in the best interest of the estate and its heirs. You also have anxious beneficiaries who already are dealing with grief. One of your many tasks is to keep beneficiaries informed of the progress in settling the estate’s affairs.
Some legal experts say that the first mistake for executors to avoid is too little or no communication with heirs. Keeping beneficiaries regularly informed will ensure that there are fewer misunderstandings as debts are resolved, assets are valued and property is sold prior to the distribution of funds. This communication effort includes maintaining careful records of all transactions conducted on behalf of the estate.
Duties of executorship
In addition to clear communications, an executor has the following duties:
- Locate the will and file it with the probate court.
- Notify banks, credit card companies and government agencies of the death.
- Set up a separate bank account for the estate.
- Inventory completely and properly the estate’s assets; file the inventory of these assets.
- Give notice of the estate and a copy of the will to beneficiaries.
- Represent the estate in court.
- Pay debts and taxes.
- Sell property or assets not designated for disbursal to a specific beneficiary.
- Take care of all assets until they can be distributed:
- Safeguard property. A vacant house can attract thieves who scan obituaries.
- Lock up and secure jewelry and other valuables.
- Photograph the inside of the home to document its contents.
- Listen and adjudicate. Heirs can be emotional about items that have sentimental rather than cash value.
- Distribute assets according to the will.
- Act impartially and be honest and fair.
As an executor, you should avoid the following mistakes:
- Delaying inheritance beyond the probate process’s protocols
- Allowing insurance on valuable assets to lapse or failing to ensure sufficient coverage
- Selling estate assets for less than they’re worth
- Claiming charges against the estate ahead of others
- Paying personal expenses with estate assets
Additional considerations
An executor bond might be required during the probate process. The bond guarantees faithful performance of executorship.
Claims against the estate may involve medical bills, bank loans, unpaid fees, rent money, credit card debt and/or personal loans. If there are assets owed the estate, the executor must seek them, including filing a lawsuit if necessary.
If the estate lacks sufficient liquid assets to pay all approved claims, estate assets will need to be sold to pay those claims. Beneficiaries may not agree with the executor’s decision regarding which assets to sell. You may have to compartmentalize your emotions to focus on the steps to be taken to preserve estate assets.
Unless the estate is complicated, probate commonly takes a few months to a year. Conflicts among family members or contested wills can cause complexities and delays.
Fulfilling the role
Much of the executor’s job is administrative — stopping Social Security payments, for example. Maintain meticulous records to document your actions, e.g., a detailed to-do list, a spreadsheet of assets and liabilities, and copies of emails to the estate lawyers, appraisers, accountants and/or property managers you hire to help assess, protect and distribute the estate.
The paperwork an executor deals with can be daunting, and it’s easy to lose sight of the humanity involved — your work, even undertaken honestly, may impact the beneficiaries’ finances. In this way, accounting for and managing the beneficiaries’ feelings is an important part of the job. Throughout the intricacies of being an executor, remember that your actions are a labor of love, a true sign of honor for the deceased.