Being An Executor

What is an Executor?
Being named the executor of someone’s estate is an indication that someone sees you as a person who is very responsible and trustworthy. It’s also a big responsibility, and sometimes, a thankless job. Many families, already grieving the loss of a loved one, will fracture over conflicts surrounding the division of the estate. The executor should be a person who can communicate effectively with other survivors, and being willing to manage conflict diplomatically. Remember that one of the predictable stages of grief is anger. That anger can sometimes "land" on the executor as a tangible, concrete scapegoat of the pain loved ones feel. The executor must be able to reframe the accusations and finger pointing as a normal part of the grief process, and not something personal.

Your most important duty as executor is to act in the best interest of the estate, and to follow all applicable laws and the directions of the Will while doing so. And, if anything goes wrong, you can be held financially responsible. In such cases, the judge will not consider your good intentions or ignorance of the law. Therefore, it is in your own best interest to retain an Estate Attorney to guide you through the process.

Accepting the Duty
Your official duties as executor begin after the death. Unfortunately, this is a time when you are going to be grieving yourself, and hard decisions may seem overwhelming. The first decision you have to make is whether you even want to be the executor. You have the right to decline, regardless of the language of the Will. If you honestly feel that you are unwilling or unable to serve as executor, you can notify the court, and another executor will be appointed by the judge. Please note, though, that you do not have the right to select the alternate executor. Many Wills specify an alternate executor. Even if it doesn’t, the judge is the only one with the authority to select your successor.

Filing the Will
Your next duty as executor is to file the will. Check with your county courthouse about where to file it, and what paperwork is required. Basically, your task is to ask the court to determine that this is a valid will, and to request that you be recognized as the executor. The Will is placed in probate for a period a time to ensure that state laws are followed and that anyone with an interest or claim in the estate has a chance to come forward. The probate period may vary from 6 months to a year or longer, depending on state law and any complications that arise. During probate, the judge will issue a Letters Testamentary that allows you to act as the owner of the estate property in the interim.

Taking Possession of the Estate
Once the Will is filed and you are approved as executor, you must take possession of all the decedent’s assets, property and money. You must make a complete inventory with legal descriptions and current value. Remember that you are accountable to the judge and state and federal tax agencies for all decisions you make regarding investing, managing and selling the assets. Expect to spend a great deal of time on paperwork; there may be more than 10 different types of filings required. If the decedent left surviving dependents, you will also have to contact the Social Security Administration regarding survivors benefits. Consider also any pension plans, life insurance policies, and other possible sources of income.

Fiduciary Duty
The executor is responsible for paying creditors, taxes, and expenses, as well as distributing the gifts of the estate. You do not need to seek approval of any of the heirs before making financial decisions for the estate; you answer only to the judge. However, it is your responsibility to understand the legalities of estates, and any unintentional errors can have personal financial consequences. For instance, creditors must be paid in a certain order. Taxes, hospital bills and funereal expenses take precedence over credit card bills and other personal expenses. If you pay bills in the wrong order, and the estate is depleted before all the creditors are paid, you can be held responsible for payments made to lower priority creditors before the highest priority bills.

Closing the Estate
Your final duty will be to transfer the estate’s assets to the beneficiaries. As executor, you do not have the power to change the stipulations of the Will. If a survivor believes they are owed something different than what the Will states, they must petition the court, and the judge makes the decision. Once the gifts of the estate have been distributed, you must complete a final accounting of the disposition and close the estate. This is not a quick process; from first filing to final disposition can take well over a year.

Conclusion
The law does not require that you have legal counsel while executor. However, it is highly recommended, to protect yourself from unintentional but costly errors. If you know that you are listed as executor in someone’s Will, it may be advisable to seek out a class or seminar on Executor’s Training or Estate Planning now, before you are plunged into the role. Check your local bar association for seminars in your area. If there is a law school in your area, that is another good resource for low cost seminars.