The position of executor is a major responsibility. It is usually discussed beforehand with the future executor, but it is sometimes the case that the executor will be named to their surprise and confusion. What does it mean to be named executor, what duties are entailed by the position, and why would someone want to be executor?
These questions will be discussed and explored, as well as additional legal considerations for becoming an executor.
Responsibilities of an Executor
An executor is someone who is appointed to manage the administration of an estate. The executor has an obligation to ensure that the beneficiaries of the estate receive what is promised to them in the will or by the court. They also have a long list of other responsibilities, which include:
- Find and file the official copy of the will with the probate court
- Regularly communicating the estate’s accounting at the behest of the heirs
- Manage the extensive documentation regarding an estate, which includes but isn’t limited to tax records, real estate deeds, and birth and death certificates
- Locate assets in safety deposits, bank accounts, or elsewhere
- Protect assets by changing passwords, locks, or their locations
- Hiring an attorney to sort through and organize the various aspects of the estate if it is too much to handle on their own
- Open a bank account to hold the estate’s assets and pay off outstanding debts
- Deliver copies of the death certificate to the various agencies it concerns, including life insurance agencies
- File the deceased’s final tax returns
- Maintain a strict separation of managing the estate’s assets and their own to avoid conflicts of interest
Who Becomes Executor and Why
If no will is created or if an estate holder doesn’t name an executor in any documentation, one will usually be appointed by the court, usually the eldest child or next of kin. However, many wills generally name a family member as executor or name an attorney as executor.
An executor of a will is allowed to work for compensation or without compensation. Because the process is time-consuming and can be intensive financially and mentally, the executor is permitted to charge the estate for their time, though they are not required to do so.
In the state of Georgia, an executor may receive 2.5% of the estate’s value as compensation, excluding real estate and stocks and bonds held by the estate. However, the executor may petition the court to receive 5% of these excluded assets. The executor is also entitled to 10% of earned interest on the estate.
Many people who are named executor do so out of a sense of duty to the deceased, or to ensure that the estate is administered properly. However, if a person named executor does not feel comfortable with the position or does not have the time to manage the estate, then they may excuse themselves and the court will select another executor.
Legal Considerations for the Executor
The executor of an estate is expected to act in good faith and to distribute the assets in a fair and equitable manner, as well as be open about the administration of the estate. Withholding information, self-dealing, or inappropriately using the assets of an estate are all unfortunately common problems that occur in an estate.
Fortunately, there is legal recourse if an executor acts outside of the best interest of an estate’s beneficiaries. Gaslowitz Frankel has worked with hundreds of families who have experienced such problems, and we have a unique legal perspective that allows us to offer guidance and practical advice to families who are concerned with the progress of the estate. Contact us today to find out how we can help.
