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 primary function of an executor, also called a personal representative, is to liquidate the estate of a person who has died. The executor must pay all debts and taxes owed by the deceased and then ensure that what is left remains in the legitimate hands of those designated in the will. Typically, the executor must submit the will and death certificate to the local county probate court within a few days or a month after the testator's death.
Throughout the probate process, the executor will be responsible for maintaining assets, managing daily expenses, and paying debts and taxes, all of which require money. Executors have a number of duties, depending on the complexity of the deceased person's financial and family circumstances. If the decedent had a limited number of assets, then the executor could resolve everything through a small affidavit of inheritance. As the executor of the estate, you may end up paying some expenses (such as travel expenses) out of pocket.
Another task for the executor is to identify all beneficiaries, which can be tricky in today's highly mobile society, where there are often multiple marriages and even separated children. It is the executor's legal obligation to follow the terms of the will and, if they don't, beneficiaries can take legal action to remove the executor and file a petition against what they consider to be misconduct. One of the biggest drawbacks of being an executor is the large amount of time it takes to properly manage responsibilities. Many executors perform their duties without compensation, especially if they are one of the beneficiaries of the estate.
Although state laws provide for payment to executors, because many executors are close family members, they often do not ask for compensation. During the course of your estate planning, you can help facilitate the estate for your executor by showing them the will in advance. In addition, the executor must ensure that he finds all personal assets in the estate and protect them until distribution. Being an executor is a great responsibility and a potential burden, especially if the estate is large or there are many beneficiaries.
The executor may also need to file a decedent's income tax return until the time of his or her death and pay any unpaid taxes.
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