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Being Named Executor of an Estate:
What's Next
Acting as an executor or administrator of
an estate can involve a great deal of work, depending on the estate
involved. Many individuals agree to be named an executor for a spouse or
relative, and then are left with a task that is much more complex and
onerous than expected.
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TIP: Use our list of typical executors'
responsibilities (below) to make an informed decision as to whether to agree to
be named executor. |
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Note: Executors are bound by law to observe
a strict standard of care in fulfilling their duties, which can include, but are
by no means limited to, those listed below. |
| Here is a list of
the possible duties of an executor: |
- Inform various persons of the death.
- Cancel the deceased person's credit card and other
accounts.
- Have the will probated. Usually, this means
having a lawyer petition the court to probate (approve) the
will. Once the will has been probated, the executor has the
power to administer the estate - i.e., to perform the rest
of the duties in this list.
- "Marshal" the assets. This means finding all of
the deceased person's assets, which may not be easy.
(Imagine trying to find every asset you own right now - car
registrations, stock certificates, account statements,
deeds, pension benefits, mortgage papers, and IRA papers -
would you be able to locate these easily?)
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TIP: To ensure that
your own assets will be more easily located after death, it's a
good idea to prepare a Post-Mortem Letter. The Post-Mortem
Letter, a document you can prepare yourself, tells executors and
heirs where everything they need to carry out your post-death
instructions is located. |
- Be sure that each asset
is valued. Assets need to be valued both for estate tax
purposes, and to provide heirs with a tax basis. (Under the
tax law, the tax basis of an asset in an heir's hands is
generally its "date of death value.") Some assets, such as
business interests, will require appraisal.
- File any tax returns.
Depending on the size of the estate, tax returns that will
need to be filed might include federal and state estate and
death tax returns, the decedent's final income tax return, a
final gift tax return, and an income tax return for the
estate.
- Make an accounting of
the estate's assets. (You'll need a professional for
this.)
- Determine and pay the estate's debts.
- Sell some of the estate's assets (in certain
circumstances).
- Manage the estate's assets (if substantial time
elapses before the assets are distributed).
- Distribute the estate's assets in accordance with the
deceased person's wishes.
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| To sum up, the
complexity of the executor's job depends on the extent and
complexity of the estate's assets. Think your decision over
carefully before accepting a position as executor. |
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