What it Means to be the Executor of an Estate

At one time or another, we will all experience theof which depends upon the deceased person's
loss of someone we love. Dealing with that death isestate. Typically, an executor must:
difficult because we are not only dealing with ourLocate and secure the deceased person's assets and
own emotions, but with those of family and friendsthen sensibly manage them during the probate
whose sorrow may be even more painful than ourprocess, which commonly takes about a year.
own.Depending on the contents of the will, and the
You may also have the responsibility to act asfinancial condition of the estate, this may involve
executor for the decedent's estate if you are adeciding whether to sell real estate or securities
spouse, a son or daughter. While it may be practicalowned by the deceased person.
to say that everyone needs to make a will, put theirHandle day-to-day details, such as terminating leases,
'final arrangements' in writing and leave instructionscredit cards and other outstanding contracts, and
for the heirs, I'm sure it wouldn't surprise us to learnnotifying 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 membersoffice, Medicare and the Department of Veterans
and friends proceed in a state of semi-confusionAffairs-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 similarowed to the deceased person-for example,
situation, take heart. There are now more optionspaychecks and stock dividends.
available to you than running off to the lawyer'sPay continuing expenses-for example, mortgage
office. You have the option to hire a lawyer to actpayments, utility bills and homeowner's insurance
as a coach and have him answer your legal questions,premiums.
do some research and review legal paperworkPay 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 preparationThe executor must also notify creditors of the
service, like DocuPrepUSA, to prepare the probateprobate proceeding. State law will define the required
paperwork and the myriad of correspondencemethod of notice. Creditors have a certain amount of
needed to wrap up the decedent's affairs. If you aretime-usually about four to six months-to file a claim
the do-it-yourself kind, you can also consult somefor 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. Hugheswhether a claim is valid.
and David Klein (Facts On File) is a general but usefulPay income taxes. Federal tax returns must be filed
guide to an executor's duties. How to Settle anfor 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 ofand federal estate tax returns may be required. Only
executor's duties, but the emphasis is on financialvery large estates owe federal estate tax; for
issues. So review your options carefully, and if youdeaths in 2001, if someone leaves less than $675,000
choose wisely, you will save yourself and your familyworth 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 priorwho is a U.S. citizen is estate tax-free.) This exempt
to death that would help your family avoid theamount is set to rise until it hits $3.5 million in 2009,
expense of probate. First and foremost, it will be theand the federal estate tax is scheduled to be
executor's task to decide whether probate courtrepealed in 2010. However, the tax will reappear in
proceedings are needed. However, probate is an2011 unless Congress extends the repeal.
entirely different matter that needs to be address inMost states do not collect estate taxes of their own,
another article. Let's look at some of the duties webut take a piece of the federal taxes due, if any.
may not be familiar with that are undertaken by anSome states impose inheritance tax; rates depend on
executor.who inherits the property. Check with your states'
Giving Noticetaxing authority.
Usually the Funeral Director orders as many certifiedSupervise 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 Securityorganizations 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 needsproperty distributed to the beneficiaries, ask the
to contact in order to learn whether they wantprobate court to formally close the estate.
certified copies of the death certificate:a.) EveryBeing 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.) Everywhen naming the executor of your will. However, I
financial institution (banks, brokers)e.) Governmentthink trust is really the characteristic you want for
agencies (Social Security, IRS, Medicare, Veteransyour executor.
Affairs)f.) Title company that insured decedent's realOthers choose someone who stands to inherit a
estatesubstantial amount of their property. Naturally, a
You can usually order extra copies of the deathperson with an interest in the outcome is likely to be
certificate from the bureau of vital statistics in yourconscientious in managing your affairs after your
state. If the decedent owned property in anotherdeath. When you consider the alternative, that
state, then a death certificate may need to beexecutors are only paid a small percentage of the
recorded in the county where that property isestate (the exact amount is state regulated) you will
located. In many states, the death certificate iswant to choose someone who will honor their
recorded along with the deed of transfer.fiduciary responsibility and is willing to do the job.
Other DutiesRef: Guiding those Left Behind in Pennsylvania, Amelia
An executor has a number of duties, the complexityE. Pohl, Esq. And Harold N. Fliegelman, Esq.