An executor is someone named in a decedent’s last will and testament to settle their estate. This can involve paying the deceased’s outstanding debts and selling assets to raise the cash to do so. The remaining estate property is bequeathed to beneficiaries named in the will.
The process can entail a good bit of work and agreeing to be the executor of someone’s estate is a bigger decision than many people realize. It’s important to consider the responsibility of the position and several other factors before agreeing to take on the role.
Key Takeaways
- Executing a will requires a great deal of time and work.
- Make sure you can handle all that’s involved before accepting the responsibility.
- Consider the complexity of the estate, whether you have the time to devote to the immediate responsibilities, and the multitude of duties that will come into play when the individual who wrote the will, referred to as the testator, passes away.
- The testator has other options if you decide you want to decline the assignment.
1. The Complexity of the Estate
Taking on the role of executor, also known as a personal representative, isn’t a matter of simply reading the will and using it as a set of instructions for distributing someone’s assets. An executor essentially steps in for the person who wrote the will after their death. They see to all that person’s final arrangements, financial and otherwise.
The larger the estate in terms of property, possessions, assets, or the number of beneficiaries, the more difficult and time-consuming it will be to disperse and settle. A house, several bank accounts, a stock portfolio, and possessions will all require their own steps and hurdles to clear. Completing tax documents will most likely be required.
Even small estates with only a few beneficiaries can become problematic if just one person contests the will or is otherwise inclined to throw a wrench into the process. The best way to assess how difficult the job will be is to ask to see a copy of the will or a draft of the will if one is in the works.
You might consider passing on the responsibility if there are any obvious red flags such as unequal distributions to children, trusts or annuities to untangle, or anything else you may feel uncomfortable handling.
2. The Time Commitment
Being an executor takes time and energy and it requires a lot of attention to detail. You should be certain that you have the time to do the job before you agree to take it on. It may be difficult to set aside the necessary time if you have a busy professional life or a lot of family commitments.
It’s important to make a decision based on your current situation. You can easily be removed as the executor of the estate as long as the testator is alive. You can also request that someone work with you, such as a co-executor or professional help. But you won’t be able to appoint someone else if you don’t realize that you don’t have the time after the testator has passed away. The probate court will take over at this point.
It’s something to consider as well if you don’t live near the testator or you move out of state. You may have to travel to the testator’s home state to handle paperwork and other matters.
It’s important to review your decision to serve as an executor whenever your situation changes significantly, such as if you get married, have kids, or get older. It’s not unusual for a testator to change executors throughout their lifetime.
It’s far better to decline the honor of becoming an executor of an estate for the right reasons than to take it on for the wrong reason, such as a sense of obligation.
3. Immediate Responsibilities
Some people agree to be an executor because they think it will be years before they have to do any work. You’ll have to be ready, however, because your legal responsibility could be called upon at any time.
You should take care of a few things to prepare for the task before the testator dies:
- Make sure the testator keeps an updated list of assets and debts, including bank and investment accounts, insurance policies, and real estate.
- Know where the original will and the asset list is being held and how you can access them.
- Know the names and contact details of any attorneys or agents named by the testator and what their functions are.
- Discuss the testator’s wishes as far as a funeral or memorial service, including instructions for burial or cremation.
- Discuss the will with the testator and with the beneficiaries if possible. This can help minimize problems and surprises in the future.
- Get copies of important documents such as the will, a letter of intent, and any powers of attorney. It may be helpful to consult an estate-planning checklist to make sure you have everything you need.
4. Duties After the Testator Dies
The real work starts when the testator passes away. The executor is then called on to locate and file the will, post a notice to creditors, clear probate, manage assets, pay debts, submit tax returns, and respond to any legal challenges. Being an executor requires that you carry out the details of the will and comply with all legal requirements.
It’s important to be organized and detail-oriented. The estate will pay reasonable costs for professional help if you need it but you’ll still have to be involved at every stage.
5. How You Will Be Paid
Each state has laws determining how an executor is paid. It can be by the hour, a flat fee, or a percentage of the estate. Sometimes the fee is determined by the probate court judge.
There may be an “extraordinary fee” in addition to the regular fee if an unusual amount of work is involved, such as selling off personal property or managing litigation on behalf of the estate. The testator is permitted to state in the will how they want their executor to be paid and these provisions may override applicable state law. Executors are also entitled to compensation for expenses they incur as they carry out their responsibilities.
It’s especially important to get some sense of how you’ll be compensated if being an executor is likely to take a major portion of your time and cut into your ability to do your regular work.
Payment is made from the estate after all the bills are paid but before any money goes to the beneficiaries.
Payment may count as income to you and might have to be reported on your tax return. The Internal Revenue Service provides an interactive tool online that will tell you if you must claim the income based on your circumstances and those of the estate. It takes about five minutes to complete.
Can I Decline to Act As Executor After the Testator Has Died?
The court won’t force you to act as executor of someone’s estate but the exact rules and procedures for stepping aside can vary by state. You can typically advise the court that you’re declining to serve and it will appoint someone else in your place.
It’s a decision that’s best made right away, however, because the process can become more complicated if you’ve already officially been appointed. You may have to file a petition with the court and prove your case in this situation.
How Can Someone Contest a Will?
An individual who wants to contest a will must present the court with grounds: a solid, supportable reason why the will should be considered invalid.
Reasons might include that the testator wasn’t of sound mind because they were suffering from dementia. A will can be contested if the testator was pressured or coerced into writing it the way they did. In any case, the individual who’s contesting must file a petition with the court and appear at a trial or hearing to prove their case.
Can I Decline Payment for Serving?
Executors are also permitted to refuse compensation. It’s something you might want to consider if you’re doing this task for a member of your family and you want the whole balance of the estate to go to the beneficiaries.
The Bottom Line
It’s an honor to be selected as an executor. It means that the testator trusts you to carry out their final wishes and to see to their legacy. Only you know if you’re up to the challenge of a particular estate. It’s important to accurately size up the task as well as your personal situation before you commit to it.
There are always other options. The testator can find someone else or assign multiple executors or agents who each specialize in a particular area.