If a close family member or a parent to who you were very attached to dies and nominates you to be their executor to handle and manage the probate process and distribute their estate amongst other named beneficiaries, it is vital to understand that amidst the grief that you are already going through, you will need to carry out a variety of difficult legal and administrative responsibilities.
What’s problematic about that is it will probably be your first time handling anything of this nature. The role of an executor can be excessively daunting and emotionally charged. However, it is an important one where the executor is going to do their best to ensure the testator’s requirements are competently met.
Considering this, keep reading to understand the duties of an executor and a general outlook on what you should expect the challenges you may probably have to face, and how to tackle them to make the process smooth and amicable among other beneficiaries.
Looking Into the Fiduciary Responsibilities of an Estate Executor
An estate executor plays an instrumental role in making sure that not only are the wishes of the testator met in accordance with their will, but each process goes through the proper legal channels, starting with probate. You’ll need to conform with the specifications of the testator down to the letter but only when the legal aspects of the will are cleared.
This responsibility will hover around a slew of other vital elements, such as asset identification and distribution, taxes and liabilities, creditors, named beneficiaries, etc. In asset management, for example, the executor will be expected to list all the assets of the deceased, which mainly include commercial and private properties, pension accounts, retirement accounts, bank accounts, investments, personal belongings, and more.
On the other end of the spectrum, the executor will also be responsible for identifying the decedent’s liabilities, such as monies owed to creditors, unfulfilled tax obligations, or any other type of debt. Here, unless you are a financial professional, you’ll need to partner with experienced financial advisors and an attorney to identify and list each debt accurately, attaching the correct dollar amount and evaluating whether the estate can be used to pay off each debt before anything can be given to the named beneficiaries in the will.
In addition, another important aspect of being an executor is that you’ll need to collaborate with a legal professional because compliance is very important and critical for a streamlined probate process. This mainly involves things like probate court documentation, hearings, filings, and ensuring everything is completed before their respective deadlines. An inability to adhere to the probate court’s stipulations and deadlines may result in further legal issues, which may inadvertently result in the beneficiaries falling into dispute.
The Main Duties of An Estate Executor
As an executor, you’re first objective would be to find and list all the assets of the decedent. You’ll have to make consecutive trips to the decedent’s bank(s), take out records of transactions, note the amount of cash deposited, learn more about the types of investments done by the testator (if any), etc. Then, you’ll need to (with the help of a financial professional or an accountant) attach the correct values of all the assets of the decedent through either appraisals or market valuations.
After that, the executor will have to identify authentic creditors and/or tax liabilities or other commercial or personal debts of the decedent and evaluate how much of the decedent’s estate can be used to pay off those debts in accordance with state inheritance laws.
After the debts have been paid and the probate process comes to an end, the executor will be responsible for dividing the estate amongst the beneficiaries named in the will and according to the decedent’s wishes. You may have to involve the family attorney to ensure that each transfer or transaction is verified.
Some Glaring Issues That an Estate Executor May Face
Executors are bound to run into several different types of challenges with putting a will through the probate process. This mainly happens because of the meticulous and sensitive nature of the inheritance laws and the probate process. There are so many moving parts to consider, such as dealing with impatient beneficiaries, navigating the financials of the decedent, involving and managing attorneys and experts, and more. Considering this, let’s look at the most pressing challenges.
Having to Manage and Disburse Complex Estates
Estates that have multiple complex assets such as investments, commercial properties, businesses, etc., can be very difficult to manage as executors must look through a bunch of assets including the decedent’s personal property. Different types of assets require unique asset identification and management methodologies, not to mention, legal compliance.
For example, in the case of a particularly large estate, which may also have a running business, executors will have to look at how succession laws can be applied or planned, or if the business can be liquidated and distributed to the named beneficiaries. Taxes can be another area of contention; the executor will have to identify and calculate the amount of taxes owed to the state.
However, to make matters a bit simpler, it is very important for you to involve expert legal professionals, accountants, and financial professionals to address different layers of complexity.
Handling Conflicts Started by Impatient Beneficiaries
One of the most difficult aspects of implementing your role as an executor will be to diffuse problems created by beneficiaries. These conflicts can put a wrench into the entire probate process, delaying the process. There will always be differences in opinion amongst the beneficiaries in the family, especially as to who gets what and why the probate process is taking so long.
As an executor and the potential member of the family, it will fall on you to ensure that the wishes of the decedent are met exactly as per their specification within the purview of the law. No matter how intense those conflicts get, you should involve the legal intervention and ensure that the probate process goes on smoothly.