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The executor manages the deceased’s estate, validating the will, settling debts, and distributing assets to heirs. They have a fiduciary duty to make good decisions and may hire professionals. Taxes must be paid, and the executor authorizes the final distribution of assets to heirs.
The executor is the person designated in the will as responsible for perfecting the estate of the deceased. The responsibilities of the executor include validating the will, managing the estate until it is liquidated, settling all debts of the estate, and distributing the estate among the heirs. An executor could be a family member or a professional hired specifically to manage the estate.
Completing the responsibilities of the executor is not an easy task. The executor has a fiduciary duty to all heirs of the estate to make good decisions on behalf of the estate. In cases where the executor is an heir to the estate, that person is generally not paid to complete the executor’s responsibilities. When a professional is hired to complete the duties, that person is paid for that work.
Depending on the complexity of the estate, the executor may hire an attorney or an accountant, or both, to complete all of the executor’s responsibilities. Once the will has been validated and a court certifies the executor, the work of liquidating the estate begins. It is often a good idea for the executor to test a specific bank account for the property in order to accurately document the movement of funds in and out of the property.
The executor is responsible for finding all heirs to the estate. This process should begin soon after the proof of the will in case one of the heirs is difficult to locate. Once the heirs have been identified, the heirs should be informed that they will inherit something from the estate, but that no disbursement will take place until the executor and his advisers deem it possible. The disbursement of an estate can take place upon liquidation of the entire estate or in several stages, depending on the complexity of the estate.
All taxes owed by the inheritance must also be paid as part of the executor’s responsibilities. The executor should receive documentation from the government that all taxes owed on the estate have been paid in full. Failure to obtain such documentation could be considered a breach of the executor’s fiduciary duty. Once all debts of the estate, including those owed to the executor’s advisers or to the executor himself, have been paid in full, the executor authorizes the definitive liquidation of the estate. Upon liquidation, the executor pays the shares of the estate to the heirs.
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