Everybody Needs an Estate Executor, but Who Should It Be?
PrintDescription: Most people procrastinate about writing a will, but dying without one places a lot of stress on your family. Chances are you don't want to do that, so spend time learning about available options and talk to a professional estate planner.
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Choosing an estate executor is one of the most important decisions people will make. This individual is in charge of closing your estate after you pass away. While anyone of your choosing can be assigned to this role, probate law requires the person to be of legal age and never convicted of a felony crime.
An estate executor must be capable of carrying out required duties. While they will receive compensation for performed work, it takes many months before payment is issued. Necessary duties vary dependent on circumstances associated with the estate such as value of assets, types of assets, and the estate planning techniques put into place before death.
People who pass away without writing a will leave a mess for their family to take care of. This type of estate is referenced as 'intestate' and is usually a headache to settle. Every estate has to go through probate, whether a will is provided or not. The process is necessary for tying up loose ends and making certain heirs receive inheritance property.
Intestate estates are settled in accordance with probate laws and estate assets are normally given to direct relatives such as spouse, children, or grandchildren. The process can be lengthy, but if there are few assets and family members remain friendly, the estate might settle within a few months.
During probate, the estate executor is responsible for safeguarding estate property. If beneficiaries were assigned to receive valuable items such as real estate or investment portfolios, procedures need to be implemented to release property titles and cash.
The initial step involves gathering date-of-death value forms from financial institutions where money is held. Next, executors send the DOD forms to the county tax assessor to verify the decedent doesn't owe back taxes. If taxes are owed, the estate is responsible for payment. Inheritance property cannot be released until restitution is made.
Another responsibility for estate executors is making contact with creditors to pay back borrowed funds. If the estate isn't financially capable of paying in full, the estate executor might have to retain a lawyer to negotiate. Depending on the circumstances, estate assets might need to be sold to cover debts. This is common when real estate is used as collateral to obtain financing.
There are times when estate executors will be in charge of funeral arrangements. Burial costs are usually covered by life insurance companies or via prepaid services. Beneficiaries of life insurance policies will assign their payment rights to the funeral service provider. Any remaining funds are given to beneficiaries.
When a person passes away without life insurance their estate will cover burial expenses. If the estate can't cover costs, the family will be responsible for payment or they may have to remit an application for a pauper's funeral.
As you can see, there are many considerations and responsibilities associated with this position. It's also a good idea to talk with the person you want in charge of these tasks. There are times when the person simply can't take on the role and it's better to find out now than later.
A good technique to prevent problems is to assign two people to the role. If the primary executor can't perform duties, the secondary executor can step in without the need for court approval. Once the will is written, be certain to advise the estate executor where important documents are located. It's smart to update wills when valuable assets are added or removed, and when new heirs are born or established heirs pass away.
Most people procrastinate about writing a will, but dying without one places a lot of stress on your family. Chances are you don't want to do that, so spend time learning about available options and talk to a professional estate planner. It's a great feeling knowing everything in is order should the unexpected happen.
About the Author:
Simon Volkov is a California real estate investor who specializes in buying probate properties through estate sales and auctions. He shares firsthand knowledge about the importance of estate planning and offers an extensive article library on the subject. Topics include tips for choosing the best estate executor, ways to avoid probate, how to write a will, and much more at www.SimonVolkov.com. Article Source: Eulogy Site - http://EulogySite.com