Executor of Estate

The Basics of Estate Planning in California

An estate plan involves creating a will or trust stating how you want your property distributed if you die or become
incapacitated; it also appoints guardians for minor children while invoking the power of attorney to make financial
decisions in case you cannot do so. A living will or health care proxy expresses your preferences for medical care.

Deceased Estate Meaning

When somebody dies, the deceased estate is anything that holds some value. They are differentiated into probate and
non-probate assets. Probate assets must pass through the court-supervised probate process, which validates the
decedent’s will, pays off their debts, and ensures that any remaining assets are distributed as provided in the will
or by state law. Some common probate assets include real estate with no surviving joint owners and other assets
lacking a designated beneficiary.

Conversely, Non-probate assets avoid probate and shift straight to specific beneficiaries. Some examples of
non-probate property consist of life insurance policies, retirement accounts with named beneficiaries, and jointly
owned property with rights of survivorship.

Role of an Executor in California

The executor’s part in administering an estate following the grantor’s death in California is critical to the orderly
distribution of properties and adherence to laid down legal policies. The roles revolve around the following.

• Initiating Probate Proceedings: The executor commences this process by locating and filing their
  will with the relevant probate court. The judge provides an administrator for cases without a will, thereby defining
  how asset transfer should be done.
• Identification and Valuation of Assets: It is a duty to accurately identify and protect assets
  on the balance sheet, such as real estate and investments. Accurate valuation for various purposes involves appraisal
  and working with financial institutions.
• Preparation of Inventory: A comprehensive asset inventory is prepared and submitted to the
  appropriate probate court. The cornerstone document gives a complete picture of the estate’s worth for further
  distribution.
• Issuing Creditors’ Notification: Notifying creditors about the death of the decedent is necessary.
  This includes public notices and individual notifications, followed by the executor reviewing, approving, or
  disapproving creditor claims to achieve a fair and legal resolution.
• Proceedings in Probate Court: Probating an estate will mean attending court hearings to address any
  challenges that may arise from the will, resolving disputes among heirs, and seeking approval from the court for
  several actions. An executor is vital in ensuring the law is observed through this process.
• Filling Taxes And Settling Debts: The final income tax return for the deceased person, including,
  if applicable, the estate’s tax return, belongs to executors as part of their job description. It’s essential to
  approach tax professionals who can help you meet legal obligations.
• Distribution of Assets to Heirs and Beneficiaries: When probate is completed, and debts are paid,
  the executor should oversee the distribution of the remaining assets to the beneficiaries as specified in a will. It
  must be observed that strict compliance with legal rules and the court’s sanction are necessary during this process.
• Finalizing the Estate: The executor finalizes settling the estate by filing required documentation
  with the probate court, getting approval for distribution, and wrapping up loose ends. This systematic approach
  signals the end of probate in California.

Who Becomes Executor of an Estate When Someone Dies?

California law directs that when an individual dies intestate, leaving no appointee for their estate’s administration,
a different course is taken in probating such assets. Where there is no nominated executor, it is left to the courts to
designate an administrator who guides in winding up the deceased’s affairs. Mostly, relatives or close friends of
deceased persons become administrators.

The first step in this process involves filing a petition with the probate court requesting the appointment of an
administrator. Typically, California law prioritizes family members for this role, starting with the surviving spouse
and then moving to children, parents, siblings, and other relatives. If no suitable family member is available or
willing to serve, the court may appoint a neutral third party, such as an attorney or a professional administrator.

The administrators take over the estate when someone dies. Their duties align closely with an executor’s. They must
identify, secure, and value the deceased person’s assets, file necessary documents with the probate court, notify
creditors, and manage the settlement of debts. The administrator also contributes to distributing the remaining assets
to heirs and beneficiaries following California probate laws.

California Laws that Govern Executors’ Roles Over an Estate When Someone Dies

The California Probate Code is an expansive legal landscape defining estate planning and determining the duties executors
are required to carry out in California. It explains what this fiduciary must do to circumnavigate the detailed
provisions provided by this body of law to transfer assets upon a person’s death.

Section 10800 of the California Probate Code provides one such necessary provision, which offers statutory compensation
for personal representatives, including executors. This section specifies the percentage of the estate’s value that an
executor is entitled to receive as a condition of appointment for rendering his services. As such, the executors must
understand the guidelines to help them manage expectations and facilitate a transparent estate settlement.

Apart from these, Section 850 of the California Probate Code denotes powers conferred upon executors. It revolves around
how to initiate probate litigation when settling estate disputes. It grants the executors powers to deal with issues
such as contested claims, disputes from creditors, and even disputes from the will’s validity. The executors must handle
these processes to protect the estate interest and its beneficiaries.

Alongside the Probate Code is the California Trust Law, which is relevant to executors providing specific sections in
the Probate Code on trusts. Section 17200 clearly states the procedures beneficiaries can follow to petition a court
for fair and open dispute resolution on all matters of the trust.

Can a Beneficiary Remove an Executor from a Will?

Yes, under some circumstances, a beneficiary can petition for the removal of an executor. Removal of an executor is
taken quite seriously and usually comes under consideration by the court only on specific grounds. The reasons may
include,

• Failure to Carry Out Duties: A beneficiary can file a petition for removal where the executor has
  failed to perform their functions well or has neglected them. This could involve misusing assets, not filing
  essential papers, or being incompetent in dealing with any aspect of the estate.
• Conflict of Interest: Under this condition, a beneficiary can also sue for removal if they
  suspect that, in executing their fiduciary responsibility, the executor is under a conflict of interest that would
  compromise the fair and just administration of the estate. In this case, it may be when the executor would benefit
  from his acts personally or has some competing interest.
• Breach of Fiduciary Duty: The court should consider removal if it is determined that an executor
  acts against the best interests of either beneficiaries or estates, thereby breaching fiduciary duty. This may include
  self-dealing embezzlement, among other activities, which might entail the perpetrator’s lack of good faith in these
  cases.
• Failure to Communicate: There can also be grounds for their removal when there is no
  communication with beneficiaries. If an executor fails to keep beneficiaries updated on how far the estate settlement
  has gone, such behavior may breed suspicion and contribute to their ousting from office.
• Conflict with Beneficiaries: Disagreements and fights among the beneficiaries that prevent the
  smooth administration of the estate may be grounds for removing an executor. Disharmony and disputes may cause a
  beneficiary to request a change of the executor’s status.
• Incapacity or Death: The court may have to appoint a new executor if the one in place dies or
  becomes incapacitated. In such situations, beneficiaries might demand the removal of the current executor to
  facilitate the appointment of a suitable person.
• Court’s Discretion: The courts have discretion to remove an executor when it is in the estate’s
  best interest, even where an executor cannot effectively perform his duties or where there has been a breakdown in
  communication and trust.

Hiring an Estate Planning Attorney

While someone can handle the estate settlement process independently, they are advised to consult an experienced estate
planning attorney. This will provide guidance, ensure compliance with the law, and help deal with complex legal issues.
When choosing an attorney, you should consider their experience in estate planning and familiarity with California
laws. The charges and rates connected with hiring a lawyer depend on how intricate the estate is and what services are
offered.

Conclusion

Understanding the role of an executor of the estate in California is essential, as this will lead to a successful
administration and distribution of assets. One can quickly go through this process by understanding the basics of
estate planning, the executor’s duties, and relevant California laws. Always consult with trusted legal authorities to
ensure you are doing everything legally by seeking help from an estate planning attorney for compliance purposes while
minimizing complexities.