Being an executor does not necessarily mean you have to handle every task yourself. However, you are responsible for making sure the estate is properly administered and that the appropriate steps are taken.
What is an executor?
An executor is the person named in a will to administer the deceased person’s estate. Their job is generally to identify and protect the deceased person’s assets, deal with debts and other obligations, and distribute the estate according to the will and applicable law.
If someone dies without a will, there is no executor appointed by a will. Instead, someone may apply to the court to become the administrator of the estate.Whether you are an executor or administrator, estate administration can involve significant responsibilities.
What does an executor actually have to do?
Every estate is different, but an executor may need to take care of many different tasks including the following:
1. Find and review the will
One of the first steps is to locate the deceased person’s original will and determine whether it is the most recent version. The executor should also identify any other important estate planning documents and information that may be relevant to the administration of the estate.
2. Secure the deceased person’s property
An executor may need to take steps to protect the deceased person’s property. This could include securing a home, arranging for insurance coverage, looking after vehicles, dealing with pets and making sure property is maintained while the estate is being administered.
This can be particularly important if the deceased lived alone or owned property that will eventually need to be sold or transferred.
3. Identify the estate’s assets
An executor needs to determine what the deceased owned at the time of death. This may include any of the following:
- Bank accounts
- Investments
- Real estate
- Vehicles
- Personal belongings
- Business interests
- Life insurance
- Registered accounts
- Digital assets
- Other property
Note that some assets may pass outside the estate depending on how they are owned or whether a beneficiary has been designated.
4. Identify debts and other liabilities
An estate does not consist only of assets. The executor may also need to identify mortgages, credit cards, loans, taxes, unpaid bills and other liabilities.
This is an important part of the job because debts generally do not disappear when someone dies. Executors should be careful about distributing estate assets before determining what debts and claims need to be addressed.
5. Determine whether probate is required
Depending on the assets that are involved, the executor may need to apply to the court for a grant of probate. Probate is the process of obtaining court confirmation of the authority of the executor named in the will.
Not every estate requires probate, but financial institutions and other organizations may require a grant before releasing or transferring certain assets. The probate process can involve identifying assets and liabilities, giving required notices, preparing court documents and paying applicable probate fees.
6. Notify the appropriate people
An executor may have obligations to notify beneficiaries, creditors and other people who may have an interest in the estate, however, the exact requirements depend on the circumstances of the estate. This is one reason estate administration should not be rushed. An executor needs to understand who needs to be notified and when.
7. Deal with taxes
An executor may need to work with an accountant or other professional to address the deceased person’s tax obligations. This can include filing the deceased person’s final income tax return and dealing with taxes that may arise because of the person’s death.
Some assets can have significant tax consequences when someone dies, so understanding the estate’s financial position before distributing assets is important.
8. Deal with real estate
If the deceased owned real estate, the executor may need to determine whether it should be transferred, sold or otherwise dealt with according to the will.
Real estate can be one of the more complicated parts of an estate, particularly where there are multiple beneficiaries or questions about ownership.
9. Keep records
Executors should keep careful records of what they do on behalf of the estate. This may include records of:
- Estate income and expenses
- Payments to creditors
- Asset sales
- Professional fees
- Distributions to beneficiaries
- Correspondence and important decisions
Good records can make the administration process easier and help the executor account to the beneficiaries.
10. Distribute the estate
Once the executor has dealt with the estate’s obligations and determined that it is appropriate to do so, the remaining assets can be distributed according to the will.
Do I have to do everything myself?
No. Although the executor remains responsible for administering the estate, being an executor does not necessarily mean you have to personally handle every aspect of the estate. Depending on the circumstances, an executor may work with legal professionals such as an estate lawyer, accountant, financial advisor, realtor, or appraisers to make a complicated estate much more manageable.
What if I don’t want to be an executor?
Being named in a will does not necessarily mean you have to accept the role. If you have been named as an executor and are unsure whether you can or want to take on the responsibility, it is a good idea to get legal advice before taking steps to administer the estate as the situation can become more complicated once you begin acting on behalf of the estate.
Conclusion
Being an executor is an important responsibility, but it does not have to be overwhelming. Understanding what the role involves, keeping good records and getting appropriate professional help can make the process much easier.
If you have been named as an executor, or if you are choosing an executor as part of your own estate planning, taking the time to understand the responsibilities can help everyone involved.
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Disclaimer: This blog post is for informational purposes only and should not be construed as financial or legal advice. Consult with qualified professionals to create a personalized estate plan suitable for your specific circumstances.
