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It’s a familiar television scene: A family in mourning hovers around a lawyer, each member waiting to hear what’s been left to him or her in a will. Some walk out pleased; others disappointed.
Now for a reality check: Dividing up assets is never that simple. It can take months, or years. And if you’re named executor, you’ll have the overwhelming task of making it happen—at a time likely to be emotionally difficult for you and your family.
Knowing your responsibilities in advance can help get you organized, ease anxiety, and keep your role in perspective. Remember, this is an honor. Anyone over 18—and, in some states, who is also a U.S. citizen and relative—can serve as executor, unless he or she is a judge or a felon. Your loved one chose you as the best person to carry out his or her wishes.
When you learn that a friend or relative has designated you as executor, try to have a discussion about his or her intentions for a legacy and the estate. At the very least, find out where important documents and accounts are kept. Also, develop an executor checklist that includes the administrative tasks you’ll handle. Store it in a safe place, perhaps with your own personal documents. After the death, you’ll need to:
- Obtain an application to appear in probate court by contacting the court clerk listed in the telephone directory.
- Call the local health department to request certified copies of the death certificate, and locate the original signed will. You’ll need both documents in probate court, to prove there was a death and that you’re executor.
- Notify Social Security, Medicare, and other government agencies of the death.
- Send death notices to the post office, utilities, banks, and credit card companies.
- Let beneficiaries know you have applied to the court. (They have the right to contest the will until a deadline set by the court.)
- Distribute assets in this order:
- Pay court fees, funeral expenses, and other costs of administering the estate—including the 2% to 5% fee you’re entitled to collect.
- File taxes and pay any medical expenses, debts, rent, and wages owed by the deceased.
- Divide the remaining assets. You’ll need to appraise tangible objects, collect debts owed the estate, and file for life insurance and other benefits. Also check with the employer of the deceased for unpaid salary and insurance. Then you’ll be ready to make payouts to the beneficiaries.
- Save receipts and records of all transactions—a judge will require them to finalize the estate. Hold on to copies for at least two years.
You don’t have to go through the probate process alone. Consider using an attorney to prepare income and estate tax forms, an accountant to file taxes, and getting guidance from your financial advisor. While the cost of hiring professionals can take a chunk out of the estate, your primary goal is to ensure the deceased’s wishes are respected.
As you face inevitably challenging moments as an executor, take satisfaction in doing a final favor for someone you cared about.
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