Executor of Estate Responsibilities

Who is an Executor?

An estate executor is an individual responsible for carrying out the decedent’s wishes as stated in their last will. These include sending out notification of death, petitioning for probate, inventorying the estate, distributing assets, and closing out the affairs of the deceased.

As mentioned, the individual who draws up the will appoints the executors during the estate planning process or something of the sort. In the event, the deceased’s will is missing, or they left none at all, the court will appoint someone over the administration of the estate.

The state of California doesn’t have any stringent rules on who can act as an executor. Anyone can be appointed to serve in the capacity provided they’re at least 18 years old and of sound mind and judgment. These can be one of the beneficiaries, a close friend, a relative, or a professional such as an estate attorney or accountant.

However, you want someone organized, detail-oriented, honest, and trustworthy in charge. The individual will be handling your estate accounts and making investment decisions. If you are not careful about the choice, your estate may end up the poster child for estate attorneys’ cautionary tales.

Appoint someone who lives in the state so they can give your estate the TLC it deserves, like handling day-to-day matters during probate without charging excess travel and accommodation expenses.

What are the Responsibilities of Executor?

As mentioned, executors are responsible for carrying out the wishes of the deceased as stipulated in the last will. Some of the responsibilities of executors include:

Gathering and Organizing Estate Documents

The time following the death of an estate owner is often confusing. It’s crucial to move fast to organize the estate matters lest assets start to disappear in the hullabaloo that ensues.

The executor must obtain the latest will and any existing former versions of the document and determine the estate ownership structure. This means determining which assets may be distributed out of probate and the ones that must go through probate, then prepare a comprehensive list of the beneficiaries and heirs.

Probate is not necessary in case the estate is less than $184,500 in value, or the deceased left beneficiaries assets through a trust, or when dealing with communal properties or survivorship assets such as life insurance and retirement accounts. In contrast, probate is important when dealing with large estates and many beneficiaries or complex holdings, including intellectual properties and real estate.

The executor must also obtain the death certificate, examine and forward the emails of the deceased, and terminate credit cards and insurance plans.

File the Will in Court

The state requires executors to file wills within 30 days of the testator’s death or following the document’s discovery. This must be accompanied by the death certificate and other documents indicating the extent of the decedent’s estate.

Once the executor files the will, they may request for probate, small estate proceedings, or spousal property petitions. If the executor totally fails to file the will, it can be interpreted as a waiver of their duties and responsibilities, meaning someone else is free to seek administration of the estate.

Alert Interested Parties

It’s the role of executor of a will to issue notices of death to the deceased’s heirs, employers, creditors, and state and federal agencies like the Postal Service, Social Security Administration, and the Department of Motor Vehicle. These are individuals or entities who may be entitled to payments or be holding the deceased’s benefits, property titles etc.

Looking Into Benefits

If the deceased had unpaid wages, social security, annuities, life insurance, VA, or other union benefits, the executor must assist beneficiaries in accessing these benefits for the estate. Death and funeral arrangements can be financially draining. It would be remiss if the executor ignored these benefits when they could be used to cover some of the expenses or even increase beneficiaries’ shares.

Proving the Will in Court

Suppose the executor has previously established that probate is a must; they will need to petition the court to admit the will to probate. But a will cannot be admitted to probate until it’s established to be legitimate. The executor just needs to prove that the date on the will and the deceased’s signature are correct and that there were at least two witnesses during the will signing and dating as required by state laws. The will can be a written or holographic document (but with additional proof).

Tracking down and Inventorying Assets

If the court admits the will into probate, the executor may start preparing the estate for distribution. They must prepare a comprehensive accounting of the estate’s assets, incomes, and expenses right from the point they take charge of the estate administration. The report must include a comprehensive summary of debts paid, received benefits, income from investments, and a tax clearance form showing that the estate is wholly tax-free.

It’s always wise to pay debts and taxes before distributing any assets, even outside probate. The last thing you want is going back to the beneficiaries to ask for more funds from their share to settle debts, but they refuse, forcing you to ask the court for help.

In some cases, the executor may be allowed to sell estate properties for debt payment or any other estate project. In any case, they’ll need to inform beneficiaries first and only sell the property after valuation by an independent party. Furthermore, the property must not fetch less than 90% of its appraised value.

Managing Estate Assets

In California, executors are generally given up to a year to settle an estate following the admission of the will into probate. However, there are special cases where the executor may ask for more time, such as when paying estate taxes or handling complex estates involving unique assets, many beneficiaries, litigation, or other intervening factors.

In any case, it’s the executor’s responsibility to manage the estate’s assets throughout probate. Such responsibility may entail investing assets, collecting income and benefits, and managing physical properties to prevent depreciation and misappropriation by third parties, co-executors, or the beneficiaries and heirs themselves.

Mediating Conflicts

The role of an executor may involve conflicts such as wrangles between co-executors or disputes between the executor and heirs or beneficiaries. In such cases, it’s best to get the help of a third party, such as an estate attorney, to resolve the matter amicably or by asking a judge to intervene.

However, there are also cases where beneficiaries and heirs may be feuding with each other. An executor can step in, interpret the will, and clear any misunderstanding with the help of an attorney.

Distributing Assets

Once the executor has inventoried all the deceased’s assets and paid off debts and taxes, they may prepare a final accounting of the estate for the court, file an application for distribution, and ask beneficiaries to sign a release. Once the beneficiaries and the court approve, the executor can move to distribute the assets and file the paperwork to close the deceased’s estate.

What Can’t an Executor Do?

While the role of executor of will grants one extensive power and privileges, there are checks and balances to ensure the individuals don’t abuse the position. Specifically, executors are not allowed to do the following:

• Misappropriate estate assets for personal gain
• Refuse or neglect to pay estate taxes and debts
• Withhold benefits
• Override wills without court hearings
• Mix personal properties with that of the estate under their care
• Fail or refuse to disclose

Can One Pass On the Role of Executor of Will Job?

Of course, yes! You can decline to serve as an executor. It’s not like it’s a legal requirement to accept the appointment. When a testator names you the executor, they are simply making their wish known. You can accept or decline straightaway or give it a thorough thought and decline later when they’ve died so someone suitable can be appointed the administrator. For example, you can pass on the job of an executor in the following situations:

• You live in a different state or just far away
• You suspect heirs and creditors will raise issues about the estate assets
• You are dealing with health problems or other personal issues
• The loss of the estate owner is too much to bear
• You have a co-executor and don’t get along really well
• You feel like someone else will do a proper job than you

Additionally, it’s possible for the court to override the testator’s choice of executor in case the individual is found to have a hidden criminal record, history of substance abuse, or mental health issue.

An executor can also be removed from their position and their professional license suspended if they are found to be in breach of fiduciary causing the beneficiary financial harm. They may face penalties such as surcharges and disgorgement to compensate beneficiaries and heirs.

In any case, it’s always best to work with an experienced trust and estate attorney.

For executors, a qualified attorney can help you carry out your duties and responsibilities in a smooth and efficient manner to limit quarrels and exposure to personal liability. For beneficiaries, heirs, and creditors, an attorney can help protect your rights and interests.

We are qualified trust and estate attorneys in California with years of experience helping clients with matters regarding estate administration. If you have any questions, book a free consultation today to get expert help.