Have you been designated as an executor of a will or estate? Wondering what your responsibilities entail? Thinking you’ll be an executor in the future? This is a must read for those of you who might become an executor. It is both an honor and a burden to be an executor. It requires a great deal of patience and perseverance. Let’s start by clarifying exactly what an executor does. What Does an Executor Do? In short, an executor is someone who is charged with the responsibilities of handling someone’s earthly affairs – not always an easy task. The executor is someone who is named by the maker of a will (the person who has deceased). They are trusted to handle a variety of tasks and make sure that assets such as investments, property, and cash get distributed to those named on the will. What Specific Responsibilities Do Executors Have? There are several. Keep in mind that every situation is different. Some estates will be easier to manage than others, and it’s important to talk with those who were involved in the making of the will (such as an attorney) to help you understand your specific duties. Here are a few of the responsibilities of an executor: Locate assets and manage them until they can be properly distributed to those named on the will. You might have to make decisions about which investments to sell – including property. You might try using a budgeting spreadsheet for managing their financials. Pay taxes for the estate. Executors make sure that taxes is properly calculated. They also must fill out all the necessary forms and assist their attorney with all paperwork. Pay debts of the estate. As financial expert Dave Ramsey says, “whatever you own stands good for what you owe.” When someone passes away, their debts are not the burden of their children. Instead, their debts are the burden of their own estate. Therefore, assets of the estate might have to be sold by the executor to cover the debts of the estate. Figure out if probate court proceedings are necessary. Keep in mind that even if probate court isn’t necessary, the will must be filed with the probate court. Probate is a legal process that involves proving that a deceased person’s will is valid, identifying property (and property value), paying debts and taxes, and distribution of property. Handle questions from people named on the will. This can be one of the most difficult parts of being an executor. The emotional toll on the executor (especially when they were close to the deceased) is often a difficult burden. Executors should therefore be prepared for difficult conversations with the deceased’s friends and family. Set up a separate bank account that handles money owed to the deceased. Executors must be careful to properly handle the finances of the deceased, and a separate bank account is necessary for legal and moral reasons. It is important that the executor of the estate act in good faith according to the terms laid forth in the will. But there may come circumstances where the will has left some kind of matter unresolved. In those cases, the executor must act within legal reason to most closely match their understanding of the intentions of the deceased. What Happens if Someone Dies Without a Will? When there is no will, a person is said to have died intestate . That means they have died without a testimony. If this happens, because there is no testimony to follow, there can be no executor. The dealings of the deceased’s property are left to the government to decide. This is one reason why it is so important to get a will and name an executor. When you’re the executor for an estate, don’t forget to rely and trust in God . You’ll be glad you did. Have you been an executor for someone close to you? What was it like, and what can we learn from you? Share your story in the comments below. Resources: Nolo.com and Wikipedia.com Image by Ashley Whitworth / Shutterstock Related Articles: Advantages Of A Living Trust vs. A Will Managing Finances After Your Spouse Dies Owning real estate within an IRA Are dollars going to be changing sizes? When Can You Withdraw From Your Traditional IRA? Should you convert your IRA to a Roth? 3 Tax Season Tips and How to Have the Right Attitude John Frainee is a personal ﬁnance writer at TheChristianDollar.com . His goal is to provide biblical ﬁnancial principles that encourage people to live healthier lives. Beyond personal ﬁnance, John enjoys spending time with his wife and two crazy cats, playing a competitive game of Monopoly, and reading just about anything he can get his hands on. You can also ﬁnd him on Twitter and Facebook . The articles on this site are for entertainment purposes and should not be taken as financial advice. Please contact a financial professional for specific advice regarding your situation. Also, many of the CPF articles help us pay the bills by using affiliate relationships with Amazon, Google, eBay and others. Find out more here .
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Responsibilities of Executors: What You Need to Know