The designation of an executor is one of the most important parts of drafting your will. But what role will the executor play in handling your affairs after your death? Ron Nevin, an attorney in Nashville, Tennessee, has over 35 years of experience in probate law. Here Nevin talks about the executor’s duties under the law and how an executor goes about protecting and distributing a decedent’s assets.
When someone dies, the court appoints a person to help settle his affairs. If the decedent had a will which names an executor, the executor will take on this responsibility. If the decedent did not have a will, the court will appoint someone to be a personal representative for the estate, who will perform the same functions as an executor.
The executor’s responsibilities begin at the time of the decedent’s death and are completed once all the decedent’s debts, taxes and bills are paid and the remaining assets have been distributed according to the decedent’s instructions. The executor is primarily responsible for three things: gathering assets, settling debts, and distributing any remaining assets to the heirs.
- Gathering Assets: An executor’s first order of business is to gather the decedent’s assets. This involves locating all bank and brokerage accounts, identifying any property owned by the decedent and securing the decedent’s personal property. The executor will also need to inventory the decedent’s property and, if necessary, have it appraised to determine its value. The executor should also file for life insurance and other benefits and check with the decedent’s employer to secure any unpaid salary or pension.
- Settling Debts: Once all the decedent’s assets have been identified and secured, the executor is then responsible for settling all of the decedent’s debts. The first step in settling the decedent’s debts is to notify his creditors of his death. This allows the creditors to file claims against the estate. Most states also require the executor to place a notice to creditors in the local newspaper. This notice is intended to notify unknown creditors of the decedent’s passing so that they too can file claims against the estate. Each state establishes a time frame in which creditors can file claims. In Tennessee, claims must be filed within four months of an individual’s death. As claims are received, the executor is responsible for reviewing those claims and determining a) whether each claim is valid, and b) whether assets are available to pay each claim. In the event that a particular claim is questionable, the executor is responsible for filing an exception to that claim in order to protect the decedent’s assets. An example of a claim that should be questioned is a bill that appears to already have been paid. For all claims that are determined to be valid, the executor is responsible for making payments to the creditor. In addition to paying the decedent’s debts, the executor is also usually responsible for ensuring that the estate doesn’t incur any additional costs or fees. This is done by closing credit card and bank accounts and canceling any sort of subscriptions.
- Distributing Assets to Heirs: Once a decedent’s debts have been paid, any remaining assets may be distributed to the decedent’s heirs. If the decedent had a will, the assets will be distributed according to his wishes. If the decedent did not have a will, the asset distribution will be decided by the court according to the state’s laws of descent and distribution. In most cases, if a will is not present, the estate will pass entirely to the surviving spouse. If there is no surviving spouse, the estate will pass to the decedent’s children. Once all remaining assets have been distributed, the executor’s role is complete.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.
