A good friend or family member is having a will drawn up and asks whether you would be willing to act as the executor. You feel honored by this request and give your consent.
Now, what will you do as executor?
This article is a general overview of the estate administration process and the role of the executor in it. It is not intended to substitute for legal or tax advice; however, it will give you a good idea of the duties you will perform.
ASK NOW
If an individual has named you as executor and he is still alive, tactfully gather as much information as possible so that your duty later is easier. At the very least, ask him (the "testator") for the location of the will and important documents.
ORIGINAL NEEDED
The testator may give you a copy of the will; however, you still need to know the location of the original. Only the original can be probated after death.
BURIAL
The executor is often charged with carrying out the burial wishes of the deceased. Ask the testator now if he has any particular burial wishes or has prepaid any of the expenses. Many folks write their own obituary so that important life facts are not omitted.
ROAD MAP
Determine if the testator prepared a letter of instruction or a road map as to where his assets can be found. If not, check the mail of the deceased for a few weeks -- you will see account statements, etc., coming through.
Have the mail forwarded to you at your home address from the deceased's mailing address. This can only be done after you have been sworn in as executor and have the court appointment to show the post office.
SOCIAL SECURITY
Notify Social Security of the death.
FUNERAL
Assist in the funeral arrangements and save all invoices that have been paid.
RECEIPTS
The executor is responsible for keeping track of all expenses and bills paid. Save all receipts in a box or file and keep a diary of your actions.
DEATH CERTIFICATES
Order at least 12 death certificates from the funeral director.
HEIR INFORMATION
Obtain from the family members the full names, addresses and phone numbers of all the people named in the will as heirs. Certain notices are required to be sent to them during the estate administration.
HIRE THE ATTORNEY
Retain the services of an experienced attorney. Ask for references, and don't be afraid to negotiate the fee based on an hourly basis, not on a percentage basis.
SWEAR IN
The attorney will accompany you to the probate clerk for swearing in. A petition is prepared by the attorney and you will leave that day with your court appointment in hand.
PUBLISHING
The estate must be published in two publications for the purpose of notice to creditors.
ESTATE ACCOUNT
You will establish an estate bank account with you as the sole signatory on the account. Go to the bank that you usually use for personal banking.
YOUR POWERS
You now have the legal authority to speak and act for the estate. You owe a duty, called a fiduciary duty, to use care and skill that an ordinarily prudent person would use in business affairs.
UPDATES
Ask the attorney for periodic updates and share them with the heirs.
TAXES
You are responsible for filing all tax returns - mark the due dates on your personal calendar.
IRS NOTICE
Notify the IRS with Form 56 of your capacity of executor.
PROTECTING ASSETS
You need to protect the estate assets -- change the locks, take valuable papers into your custody.
ASSET LIST
Determine the fair market value of all assets/accounts of the deceased measured as of the date of death and how each account is titled.
Arrange an appraisal for real estate and valuables.
BUSINESS
If the deceased owned a business, meet with key employees and monitor the business operations or discuss sale of the business.
EMPLOYEE BENEFITS
Contact the company where the deceased was employed for benefits and claim forms.
DEBTS
Determine the debts of the deceased and arrange for payment.
Contact creditors immediately and inform them of the death. If the estate is insolvent, pay no bills until you consult with the attorney on the order prescribed by state law for payment.
SAFE DEPOSIT BOX
The Department of Revenue prescribes the procedure for inventorying the safe deposit box. Plan to attend this procedure and all contents will be released to you for safekeeping and the box will be closed.
CLAIM FORMS
Obtain all life insurance claim forms, veteran's burial benefit forms, and IRA claim forms for the beneficiaries.
DEAL OUT THE ASSETS & CLOSE
Keep close records of all assets distributed to all heirs and have them sign receipts. A final accounting may be required to detail all distributions. The estate is closed out through a petition and court appearance or in the alternative, family settlement agreement signed by all heirs.
Linda is a 25 year practitioner of estate and elder law and hosts the radio estate show "Exit Stage Right," airing Sundays at 7 p.m. on 104.7 FM. Contact her at lindasekely@aol.com or 724-316-1423.
