Benefits with HII

Responsibilities of an Executor

The Executor acts as personal representative on behalf of a deceased individual. This person must be designated or nominated by will. Whomever takes on the executorial role will be responsible for a host decisions and activities with regard to the disposition of the estate of the deceased. While the role is often given to family members or close friends, it can also be given to a professional or even to an institution. Multiple or co-executors may also be appointed. The named executor(s) would typically be considered trustworthy, considerate of any direct family, competent and able to perform the required duties, and willing to take on the inherent tasks. If there are no designees willing to serve as executor, or if the executor fails in their duties, an administrator will assigned by the probate court to act as the personal representative. It is important to note that the chosen executor will need to be bonded, will receive a fee for estate management, may not be a convicted felon and they must also be an adult.

Specific Terms

Decedent—A person who has died. The deceased owner of the estate for the purposes of this article.

Estate—All of the decedent's assets including property, investments, cash, and bank accounts that are subject to distribution per inheritance law and/or the will.

Intestacy—An estate that is not covered by a will is held intestate. This generally refers to estates with equity. Ex. The combined valuation of the estate exceeds the remaining debts and expenses. Partial intestacy is also possible if the whole estate is not covered by the will. The uncovered portion would be deemed the intestate estate.

Inheritance—State-specific rules determine which heirs receive distributions from an intestate estate.

Beneficiary—Estates covered by a will have no heirs, but instead leave assets to beneficiaries.

Will—Legal document prepared by the decedent that identifies the executor(s) and any beneficiaries. It specifies the allocation of estate asset shares to beneficiaries (may include the executor).

Letter of Instruction—A letter that may supplement the will and gives guidelines on specific information such as locations of special documents, names and phone numbers of important professionals, and personal thoughts or rationales concerning disinheritances and other provisions. It may not be used as will substitution.

Probate—A court-controlled process wherein the decedent's financial concerns are settled conclusively. Petitioning for probate starts the progression that includes validation of the will and the official appointment of the executor.

Trust—A legal relationship where assets are maintained by one party for another party's benefit.

More on Probate

Probate can last for years and is subject to state specific laws and deadlines. The determination of the state is based on the decedent's residence at the time of death. If there is property in several states, individual probate proceedings may be required for each state. To begin the process a petitioner generally needs an official death certificate and the original will. Once validated, a probated will is enforceable by the executor as a legal document.

There are ways to avoid probate. 'Pay on death' or 'transfer on death' preparations suffice for investments and bank accounts. Jointly owned property with rights of survivorship qualifies. If a life insurance policy, pension, or annuity has specific beneficiaries it may bypass probate. Small estates with low values may qualify. Trust relationship can circumvent probate. Finally, it is recommended to seek legal assistance to help manage and coordinate these potential benefits for the estate.

Responsibilities

Executor responsibilities may include several or all of the following activities:

• Find the will and initiate the probate process
• Order death certificates and file insurance claims
• Contact creditors
• Manage and pay for the funeral
• Maintain payments on real estate, vehicles, rental fees, licensing fees, local taxes, etc.
• Report to beneficiaries, the court, Social Security, the Veteran's Administration
• Locate important documents, like property deeds, stock certificates, licenses
• Contact professionals, such as CPAs, insurance agents, attorneys
• Make payments on utilities
• Liquidate accounts, run estate sales
• Prepare the final tax returns, represent the estate in probate court proceedings, inventory assets, distribute assets
• Reopen the estate in the future upon discovery of additional distributions or according provisions in the will

…and more! Don't forget to keep track of reimbursable expenses. This explanation is not exhaustive, but it illustrates the fact that executor responsibilities can be complex, far-reaching, and time-consuming.

Useful Websites

• Link opens in a new windowhttps://www.nolo.com
• Link opens in a new windowhttps://www.aarp.org
• Link opens in a new windowhttps://www.legalzoom.com
• Link opens in a new windowhttps://www.investopedia.com
• Link opens in a new windowhttps://www.lawinfo.com