When planning your estate, one of the most important decisions you’ll make is choosing an executor. The executor of an estate is a person appointed to manage and distribute your assets after death. This role carries significant responsibility, so it’s crucial that you select someone trustworthy and capable. But what exactly are the duties of an executor of an estate?
Below, we discuss the most important fiduciary duties an executor takes on and how they handle them. Continue reading to learn more!
What Does an Executor of an Estate Do?
An executor is responsible for ensuring that the wishes outlined in a will are carried out appropriately and according to state law. They play a crucial role in the probate process, which is the legal procedure for settling an estate. This process can be long and complex, underlining the importance of an executor’s responsibilities.
What Are an Executor’s Primary Duties?
The duties of an executor are varied and require careful attention to detail. Below are the main responsibilities an executor will typically handle during the administration of an estate:
1. File the Will With the Local Probate Court
In Illinois, an executor must submit the decedent’s will to the clerk of the circuit court in the county they resided in at the time of death. This must be done within 30 days of death.
2. Collect and Organize Assets
An executor must locate and gather all of the decedent’s assets. This includes everything from bank account information and real estate to personal belongings and investments. The executor should take inventory of these assets and protect them throughout the probate process.
3. Notify and Pay Creditors
Once assets are secured, the executor must notify all known creditors of the deceased person’s passing. The executor is then responsible for paying debts and filing final tax returns before distributing the remaining assets.
4. Distribute Assets to Heirs/Beneficiaries
After debts and taxes are settled, the executor distributes the remaining assets to the beneficiaries as outlined in the will. This process must be done in strict accordance with the terms of the will and the law.
What Should an Executor Avoid Doing?
While the duties of an executor are extensive, there are also certain things they should not do. Some of these things include:
- Acting Without Court Approval
Executors must often seek court approval before taking significant actions, such as selling real estate or distributing assets. Acting without this approval can lead to legal consequences.
- Favoring Beneficiaries
An executor must act impartially and fairly, without favoring one beneficiary over another.
- Mixing Personal and Estate Funds
Executors must keep estate funds separate from their own. Mixing these funds can lead to accusations of mismanagement and legal repercussions.
- Taking Money From the Estate
An executor is not permitted to withdraw funds from the estate before all necessary legal procedures are complete. This includes distributing their own inheritance even if they’re a beneficiary.
- Overriding the Will
An executor must never put their own interests above those of the decedent.
- Selling Estate Assets Below Market Value
The executor cannot sell estate assets below market value. It’s wise to set up independent appraisals prior to selling any assets.
The Difference Between an Estate Executor and an Administrator
There is one significant difference between an estate executor and an administrator. They do share the same duty of overseeing the management of the decedent’s estate. However, the decedent appoints an executor before their death and names them in the will. An administrator is appointed by the court when someone dies without a will.
Can an Executor Be a Beneficiary?
Yes, an executor can also be a beneficiary of the estate. In fact, many people choose a spouse, adult child, or other family member to manage their estate. However, it’s important to choose someone as executor who can handle the responsibilities without conflicts of interest.
Can There Be 2 Executors of an Estate?
Yes, it is possible to have 2 executors of an estate. In fact, some people choose to appoint co-executors to share the responsibilities. Co-executors can provide a checks-and-balances system, ensuring decisions are made fairly and transparently. However, there are potential challenges to consider:
- Coordination
Co-executors must work together and agree on decisions related to the estate. This can sometimes lead to delays or disputes if the co-executors have different opinions.
- Efficiency
Having 2 executors that need to consult with each other before making decisions might slow down the probate process.
- Legal Requirements
Both executors must meet legal requirements and fulfill their duties in accordance with the law. This can add complexity to the role, especially if one executor is more knowledgeable or engaged than the other.
It’s important to carefully consider whether appointing multiple executors is the best choice for your estate. If you choose to have co-executors, clear communication and mutual trust are critical.
The Importance of Legal Guidance
Serving as an executor comes with risks, including potential personal liability if the estate is mishandled. Errors in managing the estate can lead to disputes among beneficiaries, penalties for missed deadlines, or even trigger lawsuits.
An executor must consistently act with integrity. Sometimes, this means knowing when to seek help with the estate’s administration. Working with a lawyer skilled in probate law can be invaluable during this process.
Our team at Crosby Law Firm understands the complexities of probate in Illinois. We can provide guidance and support so you’re able to fulfill the role of executor legally and proficiently. Reach out to us today to schedule a free initial consultation!
Crosby Law Firm Can Help You Build Your Estate Plan
At Crosby Law Firm, our estate planning attorneys in Rockford are here for you. We have the experience necessary to guide you through every step of the estate administration process. If you’re just mapping out your estate plan, we’ll assist you with selecting an executor.
Our goal is to protect your wishes and your family’s best interests. We can help you understand what the role of an executor is in estate planning and choose someone right for the job.
If you’re just starting your estate planning journey or need help acting as an executor, you can depend on our law firm. Contact us today to schedule a free initial consultation!
