If you are considering asking someone to serve as the executor of your estate, be sure you understand the duties and responsibilities of being an executor. Being the executor of an estate is not really an honor, it's a difficult, time consuming job that carries some legal liability. An executor will probably work long, hard hours for at least a year or two getting your estate settled and they could quite possibly be a very unpopular person to your heirs.
There are many tasks involved in settling an estate. Here are just a few of the most important tasks:
- Locate all the heirs. This might seem like an easy task and if there are just a couple of children and they are the only ones named in the will, it is easy. If there are numerous heirs and they are named in the will either collectively or individually, the executor must locate each and every one.
- Obtain death certificates for the deceased. This is a relatively easy job but its quite important to have enough death certificates for everyone who will need a copy.
- Take an inventory of the deceased assets. This is a time consuming task. Each and every thing the person owns must be recorded. This includes valuables, antiques, clothing, investments, pensions, retirement plans, insurance policies, real estate, vehicles, and so on. There could also need to be appraisals of valuables such as jewelry or antiques.
- Handle the financial affairs of the deceased. This includes paying bills, managing investment accounts, making sure home owners and auto insurance is current, informing creditors of the death, and so on.
- If there are minor or dependent children, the executor could be responsible for arranging for their care and placement. The deceased might have their wishes stated in the will but if not, the courts might need to be involved in the placement. If there are pets, the executor will need to care for them and make arrangements for their continued care.
- File tax returns for the federal estate income tax and the deceased last tax return. If the federal estate income tax return is filed late or is inaccurate, the executor could be personally liable for any penalties.
- If there are issues that aren't resolved immediately, the executor could be handling the affairs of the estate for several years while it's in probate.
In addition to these tasks, the executor could be responsible for making sure any last wishes such as organ or body donations are carried out. The job might also include planning for the funeral or cremation and arranging for payments for the services provided.
Being the executor of some estates can be a piece of cake but for most it will be a grueling and thankless task. If you are asked to be an executor, be sure you are up to it before accepting the task. Find out as much as you can about what might be expected of you and it's a good idea to look at the will and estate plan before accepting the job of executor. If you are asking someone to be the executor of your estate, take some time to get all your affairs in order as well as create a sound estate plan and will. They will certainly appreciate your thoughtfulness.