The executor of a will is the person you appoint to carry out your wishes after your death. When you die with a legally valid will, a judge will approve the executor you named in it to act accordingly. An important part of making a will is naming someone to act as your executor, also called a personal representative in some states. What is an executor? The executor is the person who will be in charge of your estate after your death.
The executor will pool your assets and keep them safe, pay debts and taxes, and distribute your assets according to the terms of your will. An executor of an estate is a person appointed to administer the last will of a deceased person. The principal duty of the executor is to carry out the instructions to manage the affairs and wishes of the deceased. The executor is appointed by the testator of the will (the person making the will) or by a court, in cases where there has been no prior appointment.
Who should be appointed executor? Being the executor of a will is an important responsibility, although the executor's lawyer can be of great help in much of the task. The executor is required by law to settle the decedent's affairs and to comply with the terms of the decedent's will. The executor is personally responsible for the payment of all invoices and taxes of the deceased to the extent of the assets of the estate. Therefore, if the assets of the estate are distributed to anyone other than (the creditors of the decedent) and (the beneficiaries) of the decedent, the executor can be held personally liable.
Being an executor involves a significant amount of work and the person chosen must be trustworthy, responsible, organized and diligent. An executor can transfer money from a decedent's bank account to an estate account in the name of the executor, but he cannot withdraw cash from the account or transfer it to his own bank account. If a question arises about the qualifications of an executor, the court will hold a hearing to decide if the executor should be replaced and who is best suited to act as executor. The bond secures the amount of the value of the estate, thus protecting the beneficiaries from any possibility of the executor attempting to steal the estate's assets.
Often, the executor will distribute certain assets, such as furniture and jewelry, long before estate management has been completed. The executor is also responsible for paying income tax and filing income tax returns for any income earned from the estate during the course of administration. If you are the beneficiary of a will and you suspect that the executor is violating your fiduciary duty, you should discuss the situation with an estate litigation lawyer as soon as possible. Since in major estates, complex tax choices often have to be made on an estate's tax returns, it is very important that the executor enlists competent professional help.
The executor must estimate the value of the estate using the value of the date of death or the alternative valuation date, as provided in the Internal Revenue Code (IRC). The executors can use the estate money in the manner they determine best for the inheritance and to fulfill the wishes of the deceased. To complete the task effectively, the executor needs formal authority to spend money from the estate and manage matters in another way. If the inheritance is insolvent, the executor will decide how to readjust things so that all debts can be paid.
The executor plays a very important role after the death of the testator (the person to whom the will refers), including the tasks of tracking assets, paying creditors and ensuring that the beneficiaries named in the will receive the assets to which they are entitled. The executor is responsible for paying all of the decedent's outstanding income taxes and arranging for the preparation of his or her final income and gift tax return. .
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