When someone leaves and leaves a will, usually someone is “responsible” for ensuring that all of their assets are distributed according to their wishes. This person is the executor of the will and must ensure that the property of the deceased is treated in accordance with the requirements of the will.
So what exactly does the performer do? And what do you need to be prepared for if you take on this role? Let’s take a look at the duties and responsibilities of the performer.
What does the performer do?
Essentially, the executor is a designated representative who must ensure that the property is properly settled, with the distribution of assets in accordance with the wishes of the deceased.
Some of the items on the executor’s to-do list may include ensuring that the death certificate is properly filed with all relevant agencies, organizing a funeral or other event, valuing assets, ensuring that all payments continue until the property is received. settled and steps taken to ensure that all beneficiaries receive the assets to which they are entitled.
Should I? What happens if I don’t?
The best time to refuse to act as executor of the will is when the creator of the will asks you. You don’t have to say yes when asked to be a performer. If you don’t think you can do your job properly, it’s usually best to say no right away.
After the person leaves, if you refuse to act, another person may be appointed as the executor. However, you should be aware that, depending on the situation and the applicable state laws, beneficiaries could potentially hold you liable if losses result from your failure to act. If you miss paying your inheritance tax, you may be on the hook for late fees and interest. In addition, if you do not take any action as expected, you may be sued for various losses.
As an executor, you must ensure that the inheritance is in order and that the beneficiaries receive what the deceased intended to give them.
Step-by-step guide to setting up an estate
Start with a death certificate
Your first step is to obtain a copy of the death certificate. In many cases, these copies can be provided by the funeral director to assist with the final preparations. You will most likely need multiple copies as the death certificate must be sent to:
- Social Security Administration
- Lenders
- Life insurance
- Other financial institutions with which accounts are opened
- IRS
- State and local authorities
Basically, before you can run a business on the estate, you will need a copy of the death certificate to show everyone who may have anything to do with the deceased’s finances.
Final agreements
Depending on the wishes of the deceased, you may need final preparation for a funeral, memorial service, cremation, or other activities. Make sure the final preparations match what the deceased wanted.
Submit your will to the succession court
Even if assets can be transferred in an orderly manner, you may still need to file a will in succession court. Check state laws to make sure you are promoting the right way.
Create an account for the estate
You need to create a separate real estate account. This account should be used to collect whatever remains due to the deceased, such as investment dividend payments, unpaid salaries, tax returns, and other items. You must use this account to pay for property related expenses such as burial, inheritance taxes, payments to creditors, and any maintenance on property owned by the deceased.
Assemble a knowledgeable team
Depending on the complexity of financial transactions and property requirements, it may be worth putting together an experienced team to help you figure out how to manage property. You may need the help of insurance agents (for the payment of life insurance benefits), real estate attorneys, an accountant or investment advisor of the deceased, and others who may be involved. You may also need to contact various agencies, including those that administer Medicare, Social Security, and Veterans Benefits.
Find out who is most likely to be able to help you with your responsibilities and communicate with them regularly as you progress through the process.
Manage estate assets
Next, you want to make sure you figure out where all the assets are. Check all accounts as well as tangible assets such as cars and real estate. Sometimes it takes months – or even years – to set up an estate. In this case, you, as the contractor, are responsible for ensuring that the property is in working order and all current payments (including applicable taxes and utilities) are made. You will need to manage the assets of the estate with appropriate assistance until it is time to distribute the assets and close the estate.
Asset allocation management
At some point, the time will come to make sure that the property of the deceased is properly distributed among the heirs. This could mean selling certain assets to ensure that dollar amounts are respected. In some cases, it is most important to ensure that the title or deed has been correctly transferred to the new owner of the asset. A will can be a good guide to help you understand how to move forward with asset allocation.
Take care of taxes
Part of your responsibility as an executor of the will is to ensure that tax returns are filed from the beginning of the year to the date of death of the deceased. You may also need to file the appropriate state tax returns.
Close the estate
Finally, after all the steps have been completed, it is time to close the estate. Depending on state law, you may have different responsibilities as part of the final closure of the estate. Part of the process involves sending notices to the beneficiaries of the estate to confirm that you have done your job as executor of the will and that your compensation is appropriate. You will also need to provide a record of all property and all expenses associated with property management after death. You will need to file the final inventory with the court and make sure all other required paperwork is complete. Once this is done, the estate will be considered closed.
Remember to pay yourself
As a rule, the executor of the inheritance case is entitled to a commission for the performance of his duties. In some cases, the amount is negotiated in the will. In other cases, the state may have a set fee schedule that you can use. In any case, you must be sure that you pay for your services yourself.
Final thoughts
Being an executor of a will is a lot of work. There is a lot to do and it is important to stay organized. Before accepting a job as an executor, make sure you understand what is going on and talk with the creator of the will to make sure you know their wishes.
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