When drafting a Will, part of what should be included is an identification as to who should act as the executor of the estate. While most people understand this means wrapping up the affairs of the deceased, it seems that many do not have a firm understanding of what is actually expected and required of an individual in that role. Below is a brief outline of the responsibilities involved:
1) Generally, an executor has complete control over all the assets of the estate. The executor is required to protect, manage, and preserve the assets until all loose ends of the estate are tied up and assets can be distributed to their rightful beneficiaries.
2) The executor is required to maintain the liquidity of the estate. This may include obtaining loans or selling certain estate assets to ensure there is enough cash to maintain the estate, pay creditors, meet administrative expenses and pay any tax.
3) While the two items above are the general guiding principals for an executor, the actual administration of the estate begins by obtaining letters testamentary (or letters of administration if there was no Will). These court issued documents give you the legal right to manage the estate.
4) The executor must notify all potentially interested parties, including beneficiaries and creditors, about the death. They must then identify, inventory, and value all of the estate assets, preparing them for distribution.
5) Finally, all claims, payments and expenses must be satisfied, including any tax liability belonging to the decedent. Once those are complete, the estate can begin distribution of the assets to the beneficiaries, so long as the accounting of estate assets has been approved by the court or all beneficiaries.
While the duties of an executor are not necessarily easy, following these few simple rules, or contacting a knowledgeable attorney for assistance, should make the process reasonably painless. For more information on the process in Pennsylvania, check out: http://evans-legal.com/dan/easched.html.
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