When someone close to you passes away, or even you, it can be a trying experience for the family and loved ones of those that pass away. In addition to dealing with mourning and grief, there are a number of practical matters that need attention, and right away, including funeral arrangements, obtaining death certificates, reading the will, probate, distributing assets, and so forth.
Hiring an estate executor (also known as the personal representative, administrator, estate trustee, or liquidator) can make the difference between an easy process to an extremely stressful one.
The executor’s responsibility is to manage and wind up the deceased person’s estate, resolve any debts, distribute assets to heirs, and file legal paperwork. Some of the tasks might include the following:
- Arrange Funeral — Request burial or cremation, organize the memorial, order death certificates, etc.
- Take Inventory — Find and organize all estate assets and debts
- Become Executor — Get appointed by the court (if going through probate)
- Send Notifications — Notify friends and family, social insurance, banks, credit cards, etc.
- Manage Estate — Maintain and care for assets; plan asset disposition
- Resolve Debts — Pay off debts in full, or arrange for debt forgiveness
- File Taxes — Submit relevant tax returns: decedent income, estate income, etc.
- Make Distributions — Distribute net assets to heirs
- Wrap It Up — Finalize the estate settlement, including probate final accounting (if applicable)
Some tasks can be performed by anyone, such as notifying next of kin, while others have strict legal requirements. For example, some jurisdictions require that an estate administrator resides in the deceased same jurisdiction which can be difficult. Fees and costs related to getting an Executor, especially if you have limited assets, can be significant but in many cases tax exempt.
The role of an executor can be complicated and involve tax, legal, and other financial decisions. It may also be contentious depending on family dynamics. While most people choose an executor when they draft their first Will, life events typically trigger a re-evaluation of who should take on that responsibility for you.
Be sure you are careful with whom you appoint, that they are ready for the job, and that you use Time Secured to give them all the necessary and updated information for them to properly implement your final wishes.