An executor of an estate is usually a family member or someone close to the testator — the person who made the Will. In some instances, the executor can be a third-party professional who is better equipped to perform the required responsibilities. You can appoint multiple executors, but they should know about your goals, assets, and family structure. If you don’t appoint an executor yourself, the probate court may appoint an administrator on your behalf to perform the executor’s duties.
Responsibilities of an Executor of an Estate
An executor is a person in charge of your estate after death, ensuring your Will is executed based on your instructions. They have important responsibilities, which typically include:
- Getting copies of the death certificate: The executor should obtain multiple copies of your death certificate for when banks, insurance firms, or other parties ask for one.
- Notifying beneficiaries and other parties: The executor should inform your beneficiaries of your passing, as well as other relevant parties, like the IRS, Social Security Administration, and financial institutions.
- Obtaining the Letters Testamentary: This authorizes your executor to collect your assets. To get this authorization, the executor should meet all the filing requirements for the probate documents, which are legal documents that help prove the validity of the Will.
- Accurate record-keeping: Based on your asset list, the executor will have to locate these assets and record their value, potentially listing them in a court-approved inventory.
- Handling of outstanding bills: The executor shall pay your outstanding debts and taxes using your estate or assets. This is ideally done before distributing assets to your beneficiaries to avoid having to “refund” some of these assets in case more money is needed to pay the bills. Opening an estate bank account will be necessary to maintain the funds of the estate as well as allow payment of these bills. There are occasions when the esate will not have to pay certain debts. This can arise if the creditor does not sufficiently prove their claims to the court. Seeking guidance from a professional prior to paying debts is advisable.
- Distributing assets to beneficiaries: The executor should ensure your assets are distributed to the rightful heirs based on your Will. Executors cannot change the terms or beneficiaries of your Will.
Challenges to Expect as an Executor
Although you’re free to appoint an executor, not everyone may be willing to accept the responsibilities. Additionally, if you’re appointing a close friend or family member, they might not be equipped with the technical skills required. If you’re selecting an executor, understand the following challenges they can expect:
- Complex tax laws and changes: When it comes to estate planning, the executor should have an understanding of the state’s probate law and relevant tax laws. An appointed family member or close friend may choose to hire a professional to help. However, appointing third-party professionals who know about estate administration right from the start can be ideal.
- Immediate financial responsibilities: Your assets may get temporarily frozen until your executor gets the legal authority over them. This can take weeks to several years. Funeral homes and financial institutions may not wait for these frozen assets, which means your executor will have to shoulder these upfront expenses and just get a reimbursement.
- Heavy amount of paperwork: From compiling death certificates and tracking down bank accounts to submitting final tax returns, there can be a lot of paperwork involved in an executor’s duties. This can seem overwhelming if the appointed person is not used to the amount of responsibility.
- Potential conflict with beneficiaries: Beneficiaries may disagree with how your executor handles your estate. This can lead to conflicts and an emotional toll on top of the executor’s other responsibilities.
- Potential liability for gross negligence: Your executor can be held liable if there happens to be gross negligence or mismanagement in handling your assets and paying off your debts.
What Should Be the Qualities of an Executor
When it comes to who should be the executor of your Will, they should be a U.S. resident of legal age and not legally incapacitated. They should also not have a criminal record, with some states also disallowing people with poor credit or liens. Given all the responsibilities and challenges, your executor should have the following qualities:
- Trustworthy: Your executor will pay your outstanding bills and distribute your assets to your beneficiaries, so they should be someone you can trust.
- Organized: Strong organizational skills will benefit the executor in performing the required paperwork and accounting responsibilities.
- Financially skilled: Assets like investments and real estate can get complicated to handle. An executor should be skilled financially to manage these assets well.
- Impartial: The executor should treat your beneficiaries with fairness. They should also be level-headed enough in case conflicts arise and be adept at resolving these conflicts.
- Available: It takes time to perform all the duties required of an executor. Your appointed person should be willing and have the space in their schedule to do the work.
How to Appoint an Executor of an Estate
You can follow these steps to select the executors for your estate:
- Evaluate who’s ideal for the role: Your spouse, children, and close family members may be on top of your list when appointing an executor of your estate. However, third-party professionals can help you reduce or avoid family disputes with their neutral ground. Professionals may also already have a background in estate planning, making the work smoother for your family and other parties.
- Identify a backup executor: Executors can refuse or resign from their role, so having a backup or co-executor can be a good idea. Professional executors will be less likely to back out unless they quit, retire, or switch careers before your death.
- Confirm the willingness of your selected executors: Once you know who to appoint, ask if they are willing to perform the job, as it requires significant responsibility, and they might not be prepared to take on this technical role as they grieve.
- Discuss your Will with your executors: Once your executors accept the responsibilities, you should discuss the Will with them, together with the beneficiaries. You can also talk about your preferences for your funeral, burial, or cremation process. This helps get everybody on the same page and potentially avoids future conflict.
- Inform your executors about your assets: You should inform your executor how to access your asset list to make the process smoother. Lost assets will be turned over to the State’s Department of Unclaimed Property until they are found. Keep in mind that you will have to evaluate your executors as your circumstances change. A re-evaluation every 5 years or after major life events is recommended to ensure that your estate plan remains as you want it.
Protect Your Legacy With Crow Estate Planning & Probate
If you need an executor for a Will, Crow Estate Planning & Probate can help, as we provide professional services focused on estate and business planning. We understand how much your properties, investments, and other assets mean to you and your family. We can help you protect the fruits of your labor.
By opting for our estate planning services, we can help you remove the stress of such responsibilities from your family. As third parties in the process, your family can focus on taking their time to pause, reminisce, and recuperate after your passing. Schedule an appointment today to learn more.
About the Author
Deborah Moore is an attorney at Crow Estate Planning and Probate, PLC. After serving as the firm’s summer clerk during her collegiate career, she joined our team of attorneys to assist our Clarksville and Springfield clients in the areas of estate planning, probate, conservatorships, and guardianships. She graduated from the University of Tennessee with her Bachelor of Science degree in Political Science and Pre-Law Studies, then later, her Juris Doctorate from the Winston College of Law at the University of Tennessee. Originally from Stewart County, Deborah is happy to be back in Middle Tennessee to support clients through all stages of life. Learn More.
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