I’m An Executor Of A Will, Now What Do I Do?

If you’re stepping into the role of executor for the first time, you may find the responsibilities more complex than you anticipated. You might have been informed by a loved one that you were chosen to fulfill this duty, but do you fully understand what it entails? In this episode, we’ll explore the role of an executor, outlining the key responsibilities and potential challenges you might encounter.

As an executor, your primary task is to execute the terms laid out in the deceased’s will. This includes distributing assets, managing valuable memorabilia, and ensuring the departed's wishes are honored. While this may sound straightforward, the reality often involves navigating family disputes over inheritances and addressing grievances from other beneficiaries—especially if you are also a beneficiary. Emotions can run high when money is involved, making this a delicate position.

One of the first things you’ll need to do after the will is approved by probate court is gather important documents. This includes obtaining several copies of the death certificate, the deceased’s Social Security card, marriage certificates, and any other legal documents required for the probate process. Having multiple copies of the death certificate can be particularly helpful, as various institutions, including banks and insurance companies, will likely request them.

If the deceased was organized, you may find these documents easily accessible in a file or safety deposit box. However, if not, you may need to take on the role of a detective to locate necessary documents and assets. This task can be time-consuming, as you’ll need to track down banking, investment, and retirement accounts, as well as any outstanding loans, insurance policies, credit cards, and more.

Documenting your progress as you navigate these responsibilities is crucial. Keeping a thorough record of your communications and actions will prove invaluable, both for your own recollection and for satisfying the probate court's requirements. Should you receive complaints from other beneficiaries, having a detailed log of your activities will help demonstrate that you are fulfilling your fiduciary duty.

As executor, you’ll also need to pay off any outstanding liabilities, including credit card balances, mortgage payments, property taxes, and utility bills. Understanding the deceased’s financial situation will help you make informed decisions. If there are estate taxes due, you may need to sell certain assets to raise the necessary funds. It’s wise to consult with a financial professional, like a CPA, to navigate these tax-related matters effectively.

In addition to financial responsibilities, you must handle the myriad of mundane tasks that come with managing an estate. This could include returning rental equipment, canceling subscriptions, and notifying service providers of the death. Again, the death certificate will likely be required for these processes.

The clarity of the will can significantly impact how smoothly the process goes. When wills lack specificity, family disputes can arise, which places additional stress on the executor. Therefore, if you suspect you may one day serve as an executor, it’s beneficial to have open discussions with your loved ones about their wishes and to encourage them to be as detailed as possible in their estate planning.

It’s essential to remember that you’re not alone in this process. Should you ever face the threat of legal action from disgruntled beneficiaries, keeping thorough documentation of your actions can protect you. You must ensure that all assets are accounted for and that liabilities are paid prior to distributing any inheritances.

Overall, serving as an executor comes with significant responsibilities, but taking proactive steps now—like having conversations with your loved ones and understanding what this role entails—can make the process smoother and less overwhelming when the time comes. Your efforts to clarify these matters in advance will not only benefit you but also honor the wishes of the deceased, ensuring their legacy is respected and maintained.

Darryl Jarmosco, CFP®, ChFC®, RICP® specializes in retirement planning in Grand Haven, MI.

Securities offered through Registered Representative of Cambridge Investment Research, Inc. a Broker/Dealer, Member FINRA/SIPC. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Jarmosco Financial Advisory are not affiliated. Cambridge does not offer tax or legal advice. Fixed insurance services offered through Jarmosco Financial Advisory