The duties and responsibilities of an executor of a will is a multifaceted one, and, unfortunately there is no guide book that tells you what to do. So here is an overview of what you need to know.
Make Funeral Arrangements
The first thing an executor must do is make arrangements for the deceased to be transferred to a funeral home. The funeral home will help with the next steps, such as picking a casket or urn, obtaining the death certificate and arranging the memorial service. The will executor will still have to handle other arrangements on their own such as flowers, donations, music and the eulogy.
Handle Burial or Cremation
Whether the deceased is cremated or buried depends on what they specified. If no wishes have been expressed, the executor has sole decision over what to do with the body. If they chose to be buried, the executor has to pick a cemetery and buy a plot, and that has to be paid for before the funeral can take place. Other expenses will be a digging fee, a vault (optional), and a tombstone. Cremation is slightly cheaper than burial. Expenses will include the cremation, an urn, a cremation casket, and a plot if the ashes are to be buried.
Read the Will
The deceased should have given their executor a signed copy of the will at the time it was written. It will be necessary to contact their lawyer to obtain the original. Several notarized copies of the original will have to made as this is required by the bank and other institutions along with a copy of the death certificate. The original will is filed with the probate papers to the court.
The will normally states that the executor must first pay all funeral expenses, taxes and outstanding debt before beneficiaries are paid. It is also the executors responsibility to inform all beneficiaries. If there are many, a reading of the will can be held with everyone present.
An executor cannot distribute any assets to beneficiaries until they receive a clearance certificate or release letter from their government's taxation agency (such as the IRS), and this will take approximately 4 to 6 months after the filing of both the deceased's final tax return and the estate tax return. So tell beneficiaries to be patient because even if the probate process goes quickly, the release of the estate will take at least a year after date of death.
Take Control of Bank Accounts
If there is money in the deceased’s bank account(s), the bank may allow it to be used for funeral expenses. An executor's duties involves informing the deceased’s bank of their passing, so that the bank will put a hold on all funds and transfer them into an estate account. Any checks the executor receives that are made out to the estate are given to the bank and deposited into the account. The executor cannot touch any funds in the estate account until letters of probate are received by the bank. The bank will also allow the executor to access any safety deposit boxes.
File Life Insurance Claims
The executor should see if there are any life insurance policies. If the deceased was employed it will be necessary to check with their employer to see if they have life insurance as an employment benefit. If life insurance is made out to a named beneficiary who is not the executor, that money cannot be used for funeral expenses or other debts. While the executor notifies the insurance company and fills out the paperwork, they will pay the beneficiary directly and that amount is not considered in the value of the estate for probate. If the beneficiary is the estate, then the executor will be sent a check made out to the estate, but it is still not subject to probate fees.
Probate of a Will
Once the executor has the original will and death certificate, they can file for probate and will have to pay a fee related to the value of the estate. Probate means that a court of law has reviewed the will and gives their seal of approval that the will is legitimate and binding and not subject to appeal. Financial institutions require a probated will before they will release any of the deceased’s assets. Depending upon the complexity of the assets, the number of beneficiaries, and the date of the will, probate can take anywhere from a few months to several years.
Deal with the Estate
The executor's responsibilities are also to cancel the deceased’s health insurance, driver’s license, car and home insurance, credit cards, social security payments, utilities and so forth. Any property such as a home or cars must be transferred into the name of the executor so they can authorize its sale. The executor will also have to put these assets under their own insurance policy until sold. Finally, the executor will have to complete the last tax return and an estate tax return, usually within six months after the person has died.
As you can imagine, the executor’s duties and responsibilities are large and varied. Think carefully before you decide to take on such a responsibility.
