Acting as an executor of an estate is an important role that can initially feel daunting.
Some complexities come with estate administration, and it’s important to understand your legal duties to streamline the process. We’ve put together this executor of estate guide to help individuals who are handling estate duties for the first time, whether it’s being done independently or with professional legal assistance.
It is considered an honor to be acting executor, though it’s important to acknowledge that the role is complex and time-consuming. This guide will help you understand your role, or assist you in choosing the best person to be your executor, as well as ensure that the decisions made are informed.
Disclaimer: It is important to retain consultation with local legal experts whenever dealing with complex financial affairs.
Table of Contents
- 1 Understanding the Role of an Executor of Estate
- 2 Key Steps in the Executor of Estate Process
- 3 Professional Executor Services and Best Practices
- 4 Local Focus: Executor of Estate in Washington
- 5 Frequently Asked Questions (FAQs)
- 5.1 How much does it cost to hire an executor or executor-related legal services?
- 5.2 Can a lawyer be my executor?
- 5.3 What does an executor of estate do?
- 5.4 How do I choose the right executor?
- 5.5 What happens if an executor makes a mistake?
- 5.6 How long does an executor take to settle an estate?
- 5.7 When should I consider hiring professional executor services?
- 5.8 Where can I find an executor of estate in Washington?
Understanding the Role of an Executor of Estate
What is an executor? An executor of an estate, sometimes known as an administrator or personal representative, is the person (or entity) appointed to manage all financial affairs and carry out the final wishes of a deceased person, as outlined in their will.
What are the duties of an executor? The executor must identify and collect the estate’s assets, safeguard assets, distribute assets to beneficiaries, pay off debts, taxes, and liabilities owed by the estate, and file all appropriate returns for the deceased.
Ultimately the role of the executor is the distribution of assets per the deceased’s will. They might create an executor of estate duties checklist to help with accuracy and integrity in managing the estate.
There are legal, administrative, and fiduciary duties that must be followed to the letter, including locating the will, making funeral and burial arrangements, identifying beneficiaries, ascertaining and valuing assets, keeping proper accounts, and making any final legal decisions over the estate. This is where legal counsel can come in handy.
Key Steps in the Executor of Estate Process
The executor is charged with protecting the deceased’s property. After all debts and taxes are paid, what is left is transferred to those entitled to it by declaration of the will.
What does the executor of the estate process look like?
- Locate the deceased’s assets.
- Manage assets until they are distributed to inheritors.
- Decide if probate is needed.
- Figure out who inherits the deceased’s property.
- Locate the will in probate court.
- Handle all the daily details as an executor.
- Set up a bank account for the estate.
- Pay expenses from estate funds.
- Pay debts and taxes.
- Supervise the distribution of property and funds.
Probate Process
The probate process adds a bit of clarity to the executor of estate responsibilities. After the owner of the estate passes on, the person named in the will as executor files papers with their local probate court. The executor proves the will is valid, and presents the court with a comprehensive list of debts, property, and beneficiaries. Relatives and creditors are notified of the death.
The executor then finds, secures, and manages assets. The executor must decide whether or not to sell real estate and property to satisfy debts and taxes and will have to go through extra steps such as appraising artwork and collections. The executor is granted permission to pay all debts and taxes and then divide the remainder among the people/organizations named in the will. An estate probate attorney can help with this process.
Filing of Documents
The executor must locate and file all appropriate documents, including the will of the deceased. This can be a complex, labor-intensive process better handled by trusted legal experts. After the will is located it must be filed in probate court.
Probate is not required in Washington State, however, Washington does require that any will be filed within the court 40 days after death.
Inventory of Assets
It is the job of the executor to read the will and determine how assets are divided. If the family member dies intestate (without a will), the administrator must look at Washington State law and follow a legal guide to determine the heirs of the deceased. All assets must be properly inventoried and doled out, after debts and taxes are paid.
Notification of Beneficiaries
In Washington State, you have 20 days to notify the beneficiaries of the will after the appointment.
Settlement of Debts
If probate moves forward, the executor must officially notify creditors. Washington State law has a procedure that must be followed, and all debts must be settled before assets and monies are distributed to beneficiaries. A probate estate attorney can be especially beneficial here.
Executor of Estate Duties Checklist
What checklist should be followed as an executor estate? When managing a deceased’s will as an administrator, it’s important to follow the law to the letter to ensure that nothing is missed or forgotten.
- Notify Necessary Entities of the Deceased – Order certified copies of the death certificate, which you will need as executor (sending them to banks and financial institutions, etc.)
- Notify the Social Security Administration – If the deceased had a spouse or children, their family may receive benefits.
- Begin the Probate Process – Obtain the Last Will and Testament of the deceased, as well as any other estate planning documents. At this step, it would be wise to secure legal counsel who can show you how probate works.
- Identify and Gather Assets – Testamentary letters appointing you as the administrator give you the authority to locate bank accounts, inventory, mortgages, beneficiary designations, etc.
- Manage Businesses and Properties – As an administrator, you must locate and safeguard personal property, valuables, business interests, important papers, etc.
- Pay Debts and File Taxes – Address all debts, pay valid claims against the estate, hire an accountant if necessary, pay real estate and income taxes, pay attorney and administrator fees, etc.
- Transfer Assets – Ensure that all beneficiaries receive what is owed them according to the will.
- Close Out the Estate – Complete the administration process by submitting an accounting and final distribution to Washington State courts, and check with your legal counsel that everything has been done according to state law.
Professional Executor Services and Best Practices
At this point in the guide, you may be feeling overwhelmed as executor of an estate. Itemizing assets and debts, notifying beneficiaries, talking to banks and organizations—it can all be a great hassle and take an enormous chunk of your time. Without careful thought and calculation, mistakes can be made. This is why you need an estate planning attorney.
Managing a will is not a straightforward task. Proper execution of a will is a taxing aspect of estate planning, especially for individuals of high net worth. Estates that include a complex amount of property, assets, and investments can overwhelm someone who is not trained as an executor. When writing your will, you want to ensure that your trustee can carry out your terms and is not bogged down by the overwhelming amount of work involved.
Valuing property, counting assets, compiling and filing documents, keeping proper records, and continuously reviewing requests take time and energy. Before someone is appointed as a trustee or executor, you should ensure that they have the time, knowledge, desire, and awareness to carry out all aspects of the will.
Executor of estate best practices include professional services and can be found by searching online. Examples include “will lawyers near me.”
The benefits of hiring a professional executor should be obvious, especially when dealing with complex estates or personal involvement. Professional executor services can be attractive for those who do not have the time or energy to handle administrative duties on their own.
A professional can navigate legal hurdles, properly manage estate assets, and reduce emotional stress during an already emotional time.
Executor of Estate Guide: Best Practices for Success
Successful estate administration can be as simple as following the steps from beginning to end.
An estate administrator should follow this guide:
- Arrange the funeral/memorial and organize death certifications, burial, cremation, etc.
- Take inventory of all estate assets and debts.
- Become the court-appointed executor if going through probate.
- Notify friends and family, banks, social security, credit cards.
- Manage and maintain estate assets and plan disposition.
- Pay off debts in full, and/or arrange debt forgiveness.
- Submit tax returns, and file taxes for decedent income, inheritance, estate income, etc.
- Follow the inheritance distribution process.
- Distribute assets to heirs after paying debts and taxes.
- Finalize the estate and settle a final probate accounting.
It is important to account for everything during this process, which includes timely record-keeping and communication with beneficiaries. Make timely filings per Washington State laws, and follow executor of estate guides to ensure that nothing is missed.
Local Focus: Executor of Estate in Washington
By now you might be feeling overwhelmed, so what should you focus on as executor of estate in Washington State?
If, for instance, you are an administrator for an estate in Spokane, Yakima, or Kennewick, you can hire the legal counsel of Skyview Law to oversee your administrative duties and offer important legal advice and counsel. It is important to keep local probate laws, state-specific requirements, and available resources in mind, as Washington State has its specific resources available for executors.
Here are some common mistakes to avoid as an executor:
- Failure to properly identify all heirs and beneficiaries
- Failure to locate the will
- Failure to understand or learn the probate process
- Failure to begin the administrative/probate process in a timely manner
When named as an executor, it is important to contact a Probate Lawyer right away. Attorneys can thoroughly and accurately assist you, greatly reducing mistakes, headaches, and troubles associated with the administrative process.
Frequently Asked Questions (FAQs)
Executor fees are paid to the will’s executor. In exchange for the many administrative services they must execute, including notifying beneficiaries and locating assets, executors receive some compensation.
The specific amount can vary based on several factors, including the size of the estate. There are many Washington State fiduciary and wealth management services.
The exact fee depends on the will and the state, and can be a flat fee or “reasonable compensation.” Some executors may work without accepting a fee, such as when the executor is also a beneficiary. If you are hiring an executor or executor-related legal services, you may be subject to hourly rates, flat fees, or percentage-based fees per service rendered.
The complexity of the estate, local rates, and services provided can all influence final costs.
Can a lawyer be my executor?
Yes, you can appoint an attorney as your executor, but there are a few things of which you should remain aware. Appointing your lawyer as an executor is not recommended unless you are wealthy or have a significant estate.
Because an attorney knows the local and state laws as executor, they can collect a percentage of your estate as acting executor, but can also charge the estate separately for legal services rendered. While it is important to retain legal services and counsel when managing an estate, your executor should be an objective heir.
What does an executor of estate do?
An executor of estate carries out the instructions of the deceased to manage their affairs. They are appointed by the deceased’s will or a court, and ensure all assets of the will are accounted for. They then transfer these assets to the named beneficiaries.
Assets can include finances, real estate, investments, collectibles, furniture, etc. The executor or administrator must follow all legal procedures, ensure all debts and taxes are paid, and fulfill all legal obligations.
How do I choose the right executor?
In no uncertain terms, your executor should be someone you trust. After your demise, they will be responsible for ensuring your wishes are carried out and your assets are properly distributed. It is important to choose someone reliable, honest, and responsible, a trustworthy individual that is ideally suited to your situation. They should be willing, available, personable, and legally capable.
What happens if an executor makes a mistake?
While executors of an estate are generally not personally liable for an estate’s debts, some mistakes can be made while serving as administrator. If an executor is dishonest or careless they might open themselves to lawsuits and other legal and financial consequences if they do not perform their duties correctly and to the best of their ability.
Beneficiaries can bring legal actions against dishonest or careless executors, and an executor can be removed from their duties via court petition if there is evidence of misconduct or incompetence.
How long does an executor take to settle an estate?
The average time to settle an estate is around 6 months to a year, though the process can be quickened when probate isn’t necessary, such as in Washington State. If no complications arise and the estate is relatively small, the executor should be able to settle well within a year of the deceased’s death.
Sometimes legal challenges do arise, and there are unforeseen complexities associated with the will or debts. If the executor finds themselves facing undo legal challenges it is wise to hire a probate attorney.
When should I consider hiring professional executor services?
Complications can arise that make settling an estate an enormous headache, and if one has not dealt with probate or other legal courses before, they might be excessively nervous about all the legal responsibilities and potential errors involved.
Hiring a professional executor can help empower an administrator, smooth out the decisions, reduce legal complications, and make the entire process simpler. A professional can also mediate disputes between accountants and heirs, and can even work as a co-executor so that the family retains control during the process.
Where can I find an executor of estate in Washington?
Family and Probate Law Firms in Washington State, such as Skyview Law, provide local executor services specializing in estate administration and planning. You can also check local legal directories, bar associations, and state court websites. Additionally, check in with friends and family who have secured these services in the past and have informative stances on both the pros and cons of professional executive services.
