One of the most important parts of the will is naming an executor of the estate. An executor can be a person or an institution selected based on trust and reliance. When a person has been appointed as an estate executor, it is important that he or she understands what the duties entail.Checkout riddle and butts llp for more info.
An executor is the administrator of the estate and he has total control over all the assets of the estate. The main duties of an estate executor are to protect and preserve the assets of the estate and ensuring that asset management is done in a judicious and prudent manner. Asset management includes investing excess cash.
The other point that an executor has to also take note of is liquidity of the estate. In case cash is not available, then certain assets have to be sold to maintain liquidity. Even borrowing money on behalf of the estate can be done to raise cash. Usually cash is required to pay creditors, meet administration expenses and to pay taxes.
In case an executor does not perform his duties properly and competently, he would have to be responsible to anyone who was harmed by his action.
Usually administration of an estate begins with filing of petition and it is only then that a judge issues letters of administration, which should be kept safely as they are legal evidence that give you the authority to be the executor. It is only after the issuance of letters of administration that legal notices are sent to all those involved in the estate. Beneficiaries should receive the notice through certified mail, while creditors should be informed through a publication in the newspaper.
The next stage is identifying, conducting an inventory, valuing, collecting and investing the assets of the estate. You will have to file the inventory and value reports of the assets in court and if the estate size is large, you will also be required to file estate tax return and filing the inventory and value reports with the local government, state government and the IRS.
All claims should be paid promptly. However, only those claims should be paid that were filed during the time frame mentioned by the state statute. The estate does not have legal obligation to pay all other claims.