What Is a Executor in Legal Terms
Most states require an executor to submit an inventory of the deceased`s assets to be included in the estate. The executor must also preserve and protect the property until it can be distributed or sold. The executor is responsible for ensuring that all assets are included in the will and for transferring these assets to the correct party(ies). Assets may include financial assets such as stocks, bonds or money market investments. Real estate; Direct investment; or even collectibles like are. The executor must estimate the value of the estate using either the date of death or the alternative valuation date, as required by the Internal Revenue Code (IRC). If a parent has more than one adult child, all children are often appointed co-executors so as not to show favouritism. However, for those mentioned, this arrangement may not work smoothly. Some children may be out of state or even out of the country, making it difficult to manage practical activities such as securing assets and selling a home. Some do not have the financial capacity to deal with creditors, understand inheritance tax issues and do accounts to convince beneficiaries that things have been handled properly. Many executors also contribute significantly to paperwork.
For example, forms that must be signed by all executors must be sent to everyone (in some cases, scanned documents that have been signed are acceptable, but in others, only originals are acceptable). Our editors will review what you have submitted and decide if the article needs to be revised. One of the most common questions about the role of executor is whether an executor is paid to administer the estate of a deceased person – and the corollary of this question is, «If so, how many?» The simple answer is that an executor is generally entitled to compensation, either through specific testamentary dispositions or through applicable state law. The amount varies depending on the situation, but the executor is always paid out of the estate. One of the biggest drawbacks of an executor is the time it takes to properly manage responsibilities. For example, take the time it takes to communicate with various government agencies (e.g. e.g., the Social Security Administration must stop paying Social Security benefits and, in the case of a surviving spouse, apply for a $255 death benefit; IRS and state tax authorities for income tax and death tax matters; Divisions of unclaimed Crown property to recover pension deposits and other unpaid amounts belonging to the deceased). Do you need a simple, non-legal definition of «executor»? An executor is the person who administers the estate of a deceased person and ensures that all property is distributed according to the wishes of the deceased and that all debts are paid. Typically, executors are close family members of the deceased – spouses, children, parents or siblings – but the person making a will (the «testator») can choose anyone to play this role. Again, it is important that you have time to gather this information as soon as possible after agreeing to be the executor.
Some people agree to be executors because they think it will take years before they have to do a job. However, getting the job right does it means going to work right away. In Jim Morrison`s words, «The future is uncertain and the end is always near,» so accepting the executor means your legal liability can be invoked at any time. Executor, a legal person appointed by a testator – that is, a person drafting a will – to manage the distribution of his estate after his death. The system is only found in countries that apply Anglo-American law; In civil law countries, the succession passes directly to the heir or heirs. The executor is usually a surviving spouse or other relative and reaches his position in most states, even before the will is included in probate proceedings, the court procedure to determine the validity of the will. In all cases, he is required to post bail with the court to ensure that he will not flee with the assets. He is obliged to dispose of the property in accordance with the provisions of the will.
He must collect all debts from the estate as well as pay all debts of the testator. He must then distribute the property to the heirs and legatees. If there is no will and no real estate and the heirs are able to agree on the distribution of the estate, no executor is required. Banking, credit and credit card companies, utilities and government agencies such as the Social Security Administration of the deceased are among those that the executor must contact. The main obligations of an executor vary depending on the law of the state and the complexity of each estate, but they generally include the following: Best way: Explain to heirs who want to preserve their inheritances that you cannot give them their share until you reach an agreement with creditors, the IRS and others with a claim against the estate.