| At one time or another, we will all experience the | | | | of which depends upon the deceased person's |
| loss of someone we love. Dealing with that death is | | | | estate. Typically, an executor must: |
| difficult because we are not only dealing with our | | | | Locate and secure the deceased person's assets and |
| own emotions, but with those of family and friends | | | | then sensibly manage them during the probate |
| whose sorrow may be even more painful than our | | | | process, which commonly takes about a year. |
| own. | | | | Depending on the contents of the will, and the |
| You may also have the responsibility to act as | | | | financial condition of the estate, this may involve |
| executor for the decedent's estate if you are a | | | | deciding whether to sell real estate or securities |
| spouse, a son or daughter. While it may be practical | | | | owned by the deceased person. |
| to say that everyone needs to make a will, put their | | | | Handle day-to-day details, such as terminating leases, |
| 'final arrangements' in writing and leave instructions | | | | credit cards and other outstanding contracts, and |
| for the heirs, I'm sure it wouldn't surprise us to learn | | | | notifying banks and government agencies-for |
| that many people do not take this sensible approach. | | | | example, the Social Security Administration, the post |
| Consequently, after they die, their family members | | | | office, Medicare and the Department of Veterans |
| and friends proceed in a state of semi-confusion | | | | Affairs-of the death. |
| trying to wrap up the decedent's affairs. | | | | Set up an estate bank account to hold money that is |
| If you are an executor and find yourself in a similar | | | | owed to the deceased person-for example, |
| situation, take heart. There are now more options | | | | paychecks and stock dividends. |
| available to you than running off to the lawyer's | | | | Pay continuing expenses-for example, mortgage |
| office. You have the option to hire a lawyer to act | | | | payments, utility bills and homeowner's insurance |
| as a coach and have him answer your legal questions, | | | | premiums. |
| do some research and review legal paperwork | | | | Pay any debts that the estate is legally required to |
| before submitting them to the court or mailing them. | | | | pay. |
| Other options include hiring a document preparation | | | | The executor must also notify creditors of the |
| service, like DocuPrepUSA, to prepare the probate | | | | probate proceeding. State law will define the required |
| paperwork and the myriad of correspondence | | | | method of notice. Creditors have a certain amount of |
| needed to wrap up the decedent's affairs. If you are | | | | time-usually about four to six months-to file a claim |
| the do-it-yourself kind, you can also consult some | | | | for payment of any bills or other obligations you |
| books written for non-lawyers. | | | | have not voluntarily paid. The executor decides |
| The Executor's Handbook, by Theodore E. Hughes | | | | whether a claim is valid. |
| and David Klein (Facts On File) is a general but useful | | | | Pay income taxes. Federal tax returns must be filed |
| guide to an executor's duties. How to Settle an | | | | for the year in which the person died. |
| Estate, by Charles K. Plotnick and Stephan R. | | | | Pay estate taxes if necessary. It is unlikely, but state |
| Leimberg (Plume) also has general coverage of | | | | and federal estate tax returns may be required. Only |
| executor's duties, but the emphasis is on financial | | | | very large estates owe federal estate tax; for |
| issues. So review your options carefully, and if you | | | | deaths in 2001, if someone leaves less than $675,000 |
| choose wisely, you will save yourself and your family | | | | worth of property, no federal estate tax is due. (And |
| a lot of unnecessary expense. | | | | any amount of property left to a surviving spouse |
| There are many ways to establish your assets prior | | | | who is a U.S. citizen is estate tax-free.) This exempt |
| to death that would help your family avoid the | | | | amount is set to rise until it hits $3.5 million in 2009, |
| expense of probate. First and foremost, it will be the | | | | and the federal estate tax is scheduled to be |
| executor's task to decide whether probate court | | | | repealed in 2010. However, the tax will reappear in |
| proceedings are needed. However, probate is an | | | | 2011 unless Congress extends the repeal. |
| entirely different matter that needs to be address in | | | | Most states do not collect estate taxes of their own, |
| another article. Let's look at some of the duties we | | | | but take a piece of the federal taxes due, if any. |
| may not be familiar with that are undertaken by an | | | | Some states impose inheritance tax; rates depend on |
| executor. | | | | who inherits the property. Check with your states' |
| Giving Notice | | | | taxing authority. |
| Usually the Funeral Director orders as many certified | | | | Supervise the distribution of property-such as cash, |
| copies of the death certificate as you request. | | | | personal belongings and real estate-to the people or |
| Sometimes, they even notify the Social Security | | | | organizations named in the will. |
| Administration too. | | | | When debts and taxes have been paid and all the |
| Here is a list of institutions that the executor needs | | | | property distributed to the beneficiaries, ask the |
| to contact in order to learn whether they want | | | | probate court to formally close the estate. |
| certified copies of the death certificate:a.) Every | | | | Being an executor involves lots of details and handling |
| insurance company that insured the decedent (life, | | | | many mundane tasks. So, some may think that being |
| health, auto, home)b.) Decedent's pension fundc.) | | | | meticulous is the most important attribute to look for |
| Each credit card company used by decedentd.) Every | | | | when naming the executor of your will. However, I |
| financial institution (banks, brokers)e.) Government | | | | think trust is really the characteristic you want for |
| agencies (Social Security, IRS, Medicare, Veterans | | | | your executor. |
| Affairs)f.) Title company that insured decedent's real | | | | Others choose someone who stands to inherit a |
| estate | | | | substantial amount of their property. Naturally, a |
| You can usually order extra copies of the death | | | | person with an interest in the outcome is likely to be |
| certificate from the bureau of vital statistics in your | | | | conscientious in managing your affairs after your |
| state. If the decedent owned property in another | | | | death. When you consider the alternative, that |
| state, then a death certificate may need to be | | | | executors are only paid a small percentage of the |
| recorded in the county where that property is | | | | estate (the exact amount is state regulated) you will |
| located. In many states, the death certificate is | | | | want to choose someone who will honor their |
| recorded along with the deed of transfer. | | | | fiduciary responsibility and is willing to do the job. |
| Other Duties | | | | Ref: Guiding those Left Behind in Pennsylvania, Amelia |
| An executor has a number of duties, the complexity | | | | E. Pohl, Esq. And Harold N. Fliegelman, Esq. |