Hopefully, when you get the news that you were named as the executor in a loved one’s estate, it is not the first time you received the news. But even if you knew about your eventual appointment, you likely did not think about what that meant.
Unfortunately, administering an estate as the executor is not simple.
Probate or apply for administration
First, you will need to either probate the will or apply for administration of your loved one’s estate. Both are done in the court of the county where they lived when they passed. The probate process is the legal process that validates the will, and administration is the legal process of appointing the executor.
Estate asset management
Now that you have the power and authority to manage your loved one’s estate, it is time to gather the estate’s assets and debts, and then, manage them. This includes opening up an estate bank account (to deposit estate funds and pay estate debts and taxes), locating and securing all of the estate’s assets (property, stock, real estate, etc.) and obtaining the valuations for those assets.
You will need to pay the estate’s outstanding and valid debts, taxes, expenses, etc. And, do not forget that since you have a fiduciary duty, you will need to invest and prudently manage all of these assets until disposition.
You will also need to file the inventories and accountings of this with the court. You will also need to prepare and file all of the outstanding federal and state income tax returns, estate tax returns and more.
Distributions
Finally, you will need to distribute the estate’s assets. You will know how to do this according to the will, or if there was no will, according to the state law of intestate succession.
You will need to notify all the heirs of their rights and interests.
Once everything is done, you close out the estate account, and get a discharge from the court.
Luckily, professionals with experience in estate administration can help executors manage the details, and they are essential when disputes arise.
