Duties of an Estate Executor

When you make a will, one important consideration is the naming of an executor. This is the person who will carry out the terms of your will. Ensuring that your property and assets are properly dispersed to your beneficiaries is only one responsibility of an executor. There are five categories of duties which the executor must complete: collect assets and information, determine debts and claims against the estate, manage the estate during administration, determine and pay all taxes, and distribute the estate.

Collect Assets and Information

• Locate the will and file it with probate court
• Locate the safe deposit box and go over contents with a state tax official
• Obtain multiple death certificates, as well as birth and marriage certificates
• Obtain life insurance claim forms; file claims and see that beneficiaries are paid
• Obtain doctor’s supporting statement for medical or disability insurance claims
• Apply for death benefits from Social Security, the Veteran’s Administration, employer pensions, etc.
• Open new bank accounts for the estate to receive income from the estate’s assets
• Locate names and addresses of all heirs, legatees, next of kin
• Assemble deeds, abstracts, lease contracts, insurance policies for each parcel of real estate
• Investigate status of any business interest owned.
• Locate and inventory automobiles, furniture, jewelry, other possessions
• Collect securities and other assets

Determine Debts and Claims Against the Estate

• Determine current bills owed to doctor, hospital, rent, etc, and pay them
• Determine what debts exist: mortgage, bank loans, auto loans, etc.
• Publish legal notice about claims against the estate in the newspaper
• Examine the demands of creditors and pay valid claims and oppose invalid claims
• Obtain vouchers for every bill and claim paid, keeping records of all items

Manage the Estate During Administration

• Set up bookkeeping records for the estate
• Transfer ownership on stocks and bonds; collect dividends and interest
• Inventory all assets and arrange for their appraisal
• Examine all real estate as to condition, adequacy of insurance, status of taxes and assessments
• Collect receipts and manage money in the estate in accordance with the will until it is time for final distribution
• Review all investments and make necessary changes to protect value
• Examine books and records of any business interest and have necessary audits and appraisals made
• Supervise the family owned business
• Review the immediate needs of the survivors and arrange for living expenses

Determine and Pay All Taxes

• Compute value of the estate for state and federal tax purposes, and prepare preliminary tax notices required by law
• Select valuation date for federal estate tax
• Determine whether administrative expenses should be charged against income taxes or estate taxes
• Prepare estate income tax return and last income tax return of decedent
• Determine which funds will be used to pay taxes
• Prepare and file state death tax and federal estate tax return; pay personal property and real estate taxes

Distribute the Estate

• Determine who is entitled to share in the estate
• Sell assets to raise cash for specific legacies
• Determine how assets will be distributed and which person is to get which item of property
• Pay all final costs
• Arrange for the transfer and re-registration of securities into the new owner’s name
• Prepare all the information needed for the final accounting to the court
• Obtain receipts from all beneficiaries
• Provide all beneficiaries with the cost basis of the property which they inherited