Losing a Loved One
Executor Guide

Get An Attorney

If an attorney drafted your loved one’s estate documents, contact them first to get more details and file any necessary paperwork. If your loved one did not have an attorney, it may be helpful to hire one as you maneuver through probate laws and executor duties.

Fiduciary Responsibility

Executors of an estate have fiduciary responsibility to act in the financial interest of the deceased, and should fulfill desires listed in the will to the best of their ability. These responsibilities include, but are not limited to:

•  Notifying banks, creditors, and financial partners of your loved one’s passing

•  Canceling credit cards, recurring payments, and subscriptions

•  Contacting the Social Security Administration, if your loved one was collecting Social Security benefits

Creditors and debt collectors will vary in their processes for moving forward. Your goal will be to determine who the estate owes and when they need to be paid. If all debts cannot be paid in full by the estate, you will need to negotiate debit forgiveness with each creditor. This process can be complex, and a probate attorney can be especially helpful in this area.

Securing Assets

Contrary to popular belief, a will’s heir does not immediately become the owner of property and assets that are left to them. Executors are responsible for paying the estate’s debts and creditors prior to any other distributions. Any distributions made before estate debts are settled can result in a personal liability for those debts.

Ideally, property should not be sold if it is bestowed to someone in the will – however, some valuable assets may need to be sold to protect the solvency of the estate. All property should be appraised and investment values should be documented prior to being sold, as this will be necessary for filing the estate’s taxes and various other reporting requirements.

Managing Expenses

We recommend opening a separate bank account with the estate’s funds to utilize for the estate’s payments and track each transaction. Creditors, bills, and taxes should be paid in full prior to making any distributions to beneficiaries. Thankfully, an established estate should typically pay for funeral expenses and other costs associated to your loved one’s passing.

Did you know that an estate is a taxpaying entity separate from the person who died? Because of this, executors may have to file different tax forms and will have to get an employer identification number (EIN). Your attorney can help gather this from the IRS.

Meet with Beneficiaries

Beneficiaries should be contacted as soon as possible to review estate holdings and discuss a timeline for inheritance distribution. Any special gifts outline in the will should be discussed with your attorney as well.

After debts are paid and financial matters are in place, property and funds can be distributed from the estate. As executor, you are responsible for making distributions that honor the details listed in the will. To avoid any conflict and misunderstandings, detailed documentation should be included for any payments that are being distributed to you or your relatives. The estate distribution process can be quite time consuming, and it is not uncommon for executors to be compensated for their work.

Contact a Professional

Taxes can add up quickly, so a professional accountant can be a great asset throughout the estate’s payout. A financial professional can also help you balance the estate’s solvency while managing assets, especially with a long-term trust fund. And remember – continually distributing funds means you’ll also continually file taxes on behalf of the estate until the trust is dissolved.

Estate Closure

After all financial matters are handled and assets are distributed, paperwork should be filed to notify the IRS of the estate’s closure.