Executor of Estate: Responsibilities and Role
This post will explore the responsibilities and roles of an Executor of an Estate. Learn what tasks, decisions and duties must be done in this position.
What Is an Executor of Estate?
An executor of estate is an individual or other entity appointed by a court to manage the estate of a deceased person. The executor's job is to ensure that the decedent's wishes are carried out and that his or her tangible assets and wealth are properly distributed. Executors are responsible for gathering and preserving assets, paying outstanding debts and taxes, and distributing the remaining property according to the decedent's will or applicable law.
Responsibilities of an Executor
The duties of an executor are extensive and vary depending on the size and complexity of the decedent's estate. Generally, executors must do the following:
- Locate and produce copies of the decedent's last will and testament.
- Secure the decedent's tangible property and assets, including real estate holdings and accounts.
- Inventory the decedent's belongings, as well as any tangible and intangible assets.
- Satisfy and pay any outstanding debts and taxes.
- Distribute the remaining assets in accordance with the decedent's will or applicable laws.
- File all necessary documents and paperwork.
Executors must also keep accurate financial records throughout the estate administration process and may be legally responsible for any mismanaged funds. This is why executors are typically paid for their services.
Role of an Executor
In addition to their legal responsibilities, executors have the fiduciary responsibility to act with care, undivided loyalty, and reasonable prudence when managing an estate. This means that executors must act in the best interests of the beneficiaries and must follow the decedent's instructions and wishes as specified in the will. Executors may also be charged with resolving any disputes that arise between beneficiaries or any other parties related to the estate.
An executor is often a trusted family member or friend, such as the executor of a parent's will. Alternatively, an estate planning lawyer, accountant, bank, or other professional expert may be chosen to serve as an executor.