subject: The Role of the Estate Executor in Settling Probate Estates [print this page] The Role of the Estate Executor in Settling Probate Estates
Appointing an estate executor is an important decision, as this person is responsible for settling your estate upon death. While you can designate anyone to this position, state probate laws dictate the individual must be at least 18 years of age and never convicted of a felony offense.
The estate executor is responsible for a variety of duties. Although they are compensated for their work, it will take several months before they receive payment. Required estate administration duties will vary depending on several factors. These can include marital status, type of inheritance property, and estate planning strategies taken prior to death.
When individuals die without executing a valid Will or establishing a trust, estate administration can be prolonged. All estates must pass through probate court before inheritance property can be distributed to rightful heirs. Probate is used to validate the last will and testament, but if no Will exists the estate must be settled according to probate law.
Probate can be a lengthy process that requires several months to complete. During this time, estate administrators are required to secure personal belongings and assets belonging to the decedent. In order to transfer valuable property such as real estate, estate executors must obtain property appraisals to determine the date-of-death value.
When inheritance property consists of financial portfolios, retirement accounts, or bank accounts, estate executors must submit forms to the county tax assessor to validate the decedent does not owe taxes. These forms are required by the financial institutions holding the account and must be received before inheritance money can be distributed to named beneficiaries.
The estate executor is responsible for contacting creditors and making arrangements to pay off outstanding debts owed by the decedent. If the estate does not have sufficient funds to pay owed debts they may need to hire a probate attorney to negotiate on behalf of the estate. In some cases, assets may have to be sold. This often occurs when decedents own real estate secured by a mortgage note.
Estate executors are sometimes responsible for making burial arrangements. Funeral expenses are normally paid by life insurance companies. Beneficiaries assign payment rights to the funeral home and the life insurance company distributes any remaining funds to named beneficiaries.
If decedents do not have life insurance, funeral expenses will be paid through their estate. If they do not have enough money to cover these costs, the decedent's family may have to pay for the burial or apply to the state for a pauper's funeral.
When appointing a person to the position of estate executor, it is best to discuss your decision with them first. The person whom you feel would be best suited for the job may not want the responsibility. The designated estate executor has the right to decline the position. If he steps down, probate can be prolonged while the court confirms a new person to settle the estate.
Once the estate executor has been named within the Will, it is wise to advise them of where important documents are located. If estate records are kept in a bank safe deposit box, the estate administrator should be provided with a key or informed where the key can be found. It is also wise to provide executors with copies of important records such as automobile titles, real estate deeds, and life insurance policies.
Wills should be updated on a regular basis to ensure they remain current. Always update Wills when valuable inheritance property is bought or sold or if named beneficiaries die. The Will can also be used to add new heirs or disinherit existing heirs.
People often procrastinate about executing their final Will. However, dying without a Will adds additional stress to loved ones and will prolong the probate process and distribution of inheritance property. The greatest gift anyone can leave their loved ones is to put their affairs in order and ease the process of settling the estate.
