Understanding the Role of Executor in Your Estate Plan
Once you’ve formulated your estate plan, you will need to name an executor. Determining who to designate in this significant role will be among the many decisions you will have to make. In this article, the Virginia Beach trusts and estates attorneys at The Law Office of Angela N. Manz will discuss the role of the executor and how to choose one.
What is the role of an executor?
The executor is the individual named in your will who will manage your assets after you die. The executor is a fiduciary of your estate and must act in your best interests when collecting, preserving, managing, and distributing your assets.
As a fiduciary, the executor is bound by their duties of loyalty, care, and obedience to your wishes. The executor must avoid engaging in self-dealing, stick to the directives laid out in your will, and protect the interests of the beneficiaries.
A common myth concerning executors is that they are in charge of deciding who will benefit from your assets. The executor must carry out your will’s instructions and act in accordance with your directives.
What are the duties of an executor?
The executor will be tasked with filing the original Will in the probate court in the county where the decedent lived. Importantly, the original will must be located since only the original copy can be offered and admitted to probate. Under certain circumstances, a copy of the will can be admitted, but locating the original is an important part of the process. For that reason, you should always be aware of your will’s location.
- Identify assets – The executor is responsible for finding, securing, and maintaining the decedent’s assets. The executor will need to know how to find your bank accounts, real estate, investments, and personal property. During the process, the executor will also identify any outstanding debts and liabilities.
- Safeguarding assets – Before Letters Testamentary are issued by the appropriate court, executors have a duty to preserve and safeguard the decedent’s assets. For example, if a decedent dies owning their home, the executor will be responsible for ensuring the property is maintained. This includes paying utility bills and maintaining the property’s insurance.
- Notify institutions – The executor must notify banks, credit card companies, and government agencies of the decedent’s death to ensure no further transactions are made after the decedent’s passing.
- Open an estate bank account – A bank account in the estate’s name is necessary to transfer liquid assets of the decedent. The assets are consolidated in the estate bank account for the payment of administrative expenses. This can include funeral expenses, mortgage payments, insurance, and more.
- Paying off creditors – The decedent’s debts and liabilities should be paid before the beneficiaries can receive their inheritance.
- Managing estate assets – The executor is responsible for understanding the value of the decedent’s property. The executor, for example, may need to liquidate the decedent’s property to cover estate-related expenses.
- Distributing assets – The executor must locate the named beneficiaries and tell them how much of the estate is left remaining. They then distribute the assets in accordance with the decedent’s will.
Talk to a Virginia Beach Trusts and Estates Attorney Today
The Law Office of Angela N. Manz represents the interests of individuals who are setting up their estate plan. Call our Virginia Beach estate planning lawyers today to schedule an appointment, and we can begin discussing your next steps right away.
