You’ve been named the executor of someone’s estate – so, what exactly does that mean? Where do you even start?
The process can be complicated even when you have a fairly good understanding of what’s ultimately expected of you, but breaking the job down into bite-sized pieces can make it a lot more manageable. Here’s a rough checklist that can help you get started.
Before you start: Understand the job
The executor of an estate is essentially the person responsible for carrying out someone’s wishes as outlined in their will. You’re the ultimate organizer, communicator, representative before the court and decision-maker. That’s a lot of pressure. Staying organized is key, so here’s a set of guidelines to follow:
1. Locate Important Documents
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The will
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Death certificate (you’ll need multiple copies)
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Any trust documents
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Financial records (bank statements, investment accounts and debts)
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Insurance policies (life, home and auto)
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Titles and deeds (real estate, vehicles and anything else)
2. Notify Relevant People
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Family members and beneficiaries named in the will
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The deceased’s employer (if applicable) to settle wages or benefits
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Banks, insurance companies, and creditors
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Utility providers to close or transfer accounts
3. Secure the Assets
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Lock up the house and any other properties
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Take inventory of valuables – jewelry, art and collectibles
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Arrange for storage or safekeeping if necessary
4. Open an Estate Bank Account
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Use it to pay bills, taxes and other expenses related to the estate
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Deposit funds from the deceased’s accounts into this new account
5. Pay Off Debts and Taxes
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Identify outstanding debts and notify creditors
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File final income tax returns and pay any taxes owed
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Don’t distribute assets until debts and taxes are cleared
6. Distribute Assets
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Follow the instructions in the will or trust documents
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Transfer ownership of property, vehicles or other assets to beneficiaries
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Keep detailed records of who gets what as you make distributions
7. Close the Estate
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File a final accounting with the court if required
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Close out the estate bank account
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Make sure all legal obligations are satisfied
Because this is a big job, there’s really nothing wrong with protecting your sanity by hiring some professional help. Legal guidance is essential – but you may also need accountants, evaluators and tax advisors. Keep detailed records in case anything you do is called into question, keep the beneficiaries updated so that you avoid misunderstandings and unnecessary conflicts and – finally – take your time. Rushing can lead to mistakes.