When someone passes away, oftentimes an executor is named in order to go through the probate process of managing the deceased estate. The executor has certain responsibilities that they have to fill in regards to managing the deceased estate; here are some of the main responsibilities that they have to fill:
#1 Notification
First, the executor has to notify all of the heirs of all probate proceedings. The heirs of an estate can include biological children and spouses. Depending on the state and if the person had children, their own parents, brothers, and sisters could also be considered heirs.
You will need to complete a list that has the name and as, as well as the degree of relationship to all of the decease's heirs and close relatives. You will need to formally document that you found all of the potential heirs that could lay claim to the deceased estate.
The executor also has to notify any creditors who are owed money by the deceased of probate proceedings who have any claims on the deceased money.
#2 Inventory
Second, the executor also has to take inventory of the deceased estate. They are going to need to create an inventory of all the deceased physical belongings. You are also going to need to create an inventory of all the deceased financial accounts and assets.
That means figuring out what retirement accounts they had, what property they owned and what investments they had. If the deceased had all of their financial information in order, this may be easy to do. However, if they don't have their finances in order, it may take some research in order to that information.
#4 Settle Bills
If there are creditors that the deceased owed money to, you are going to need to make an effort to pay those creditors. Those creditors can be paid through cash or by selling off assets that the deceased owned, such as property, or accessing investment funds that the deceased had. Not all creditors are valid claims on the deceased estate, so make sure that they are valid before paying them out.
#3 Taxes
Third, you are going to have to prepare the loved one's taxes. That means you are going to need to prepare income taxes for their last year of life. You are going to have to pay any relevant federal and state inheritance taxes if the situation applies.
These are just some of the responsibilities that an executor has to fulfill when they are in charge of settling someone's estate after they pass away.
Contact a local probate service for more information and assistance.
Share7 July 2017
Too many single people assume they don't need to plan their estate. My brother fell into this category, and his unexpected passing left our entire family struggling to deal with his home, belongings, and financial accounts. It took nearly three years for the courts to set up a deal because he left no paperwork detailing how he wanted his estate divided. The situation immediately convinced me to work on my own estate, even though I'm still in my early 30's and don't have children or a spouse to worry about. Since it's a little harder to pick beneficiaries and estate managers when you're single, I collected the resources I used for making my own decisions and decided to publish them here on my blog. Use these resources before talking to an estate planning attorney so you're prepared for making hard decisions.