When someone makes an estate plan, they generally need to designate someone — known as their “executor” — to handle the myriad of tasks that have to be done upon their passing. This is a position of significant authority — and responsibility.
If the executor does not accomplish their obligations to the estate and beneficiaries, they could face legal issues. To help ensure an executor fulfills their duties, it can help to learn more about their duty to an estate and their legal obligations.
Understanding an executor’s fiduciary duties
An executor has a fiduciary duty. This means that the executor must act in the best interests of the estate and its beneficiaries — putting their own interests aside. The fiduciary duties that the executor is expected to uphold can include the following:
- Administering an estate according to the directives of the will and the law
- Making the best financial decisions for beneficiaries when it comes to handling estate assets
- Managing assets with prudence and discretion so as to not cause them to devalue
- Keeping accurate records of assets, transactions and payments for accountability
If an executor fails to uphold their fiduciary duty, they could face legal liabilities and — possibly — criminal charges for fraud, embezzlement, self-dealing or abandonment.
Starting the probate process
The first step as an executor typically begins by locating the will. The will is one of the single most important documents essential for administering an estate according to the deceased’s last wishes. The will needs to be submitted to a probate court to be reviewed and authenticated. The probate process can begin once the will is validated, which allows the executor to fulfill their duties.
Settling debts and taxes
One of the goals of an executor is to examine the estate and identify unresolved debts and financial obligations left by the deceased. The executor is generally expected to settle any unresolved debts that were left behind and make tax payments with the use of estate funds before they can distribute any remaining assets.
Distributing assets to beneficiaries
An estate is typically settled once all assets are distributed to beneficiaries. The executor is generally required to locate all assets and beneficiaries before their duties are resolved. This can sometimes be complicated, especially when estates are large or beneficiaries have become estranged from the testator over time.
Legal guidance can help executors fulfill their responsibilities without facing legal battles — and that can protect all the parties involved.