When a person dies, their estate doesn’t automatically distribute itself. Chaperoning every efficient estate administration procedure is an executor, a legally appointed individual responsible for settling the late person’s business and seeing that the person’s wishes are followed as stipulated in their will.
An executor can be as informal as someone you trust from within your family, or as official as a professional like your solicitor or accountant. Whatever they may be, they will have the following primary jobs that require close details as well as legal compliances.
Detecting and Protecting Assets
The initial significant role of the executor is the discovery and obtaining of all the assets of the deceased. These will be as varied as the person’s accounts and property through personal effects and investments. The executor will be required to draw up an expansive inventory so nothing is lost or misplaced in the administration.
Asset protection also involves keeping the assets in good condition. For example, if the estate is a house, the executor should keep the house insured and maintained until the house is distributed, or the house is sold.
Dealing with Debts and Tax Liabilabilities
Before the assets are distributed among the beneficiaries, the executor is liable to pay all valid debt and tax liabilities. The process involves identifying the creditors, checking the claims, and paying the claims from the assets.
Tax liabilities can be especially complicated, as the executors will be required to file the final income tax from the deceased person and may be required to pay capital gains tax upon some assets. Being informed is imperative, as the person becomes personally liable when taxes are not administered appropriately.
Transferring Property to Beneficiaries
After the payment of debt and taxes, the remainder of the assets may be distributed as per the instructions in the will. The procedure needs meticulous documentation and notification with all the beneficiaries in order to maintain transparency during the distribution.
The executor is also liable for any disputes that may be gone through among the beneficiaries, although complex conflicts may require the counsel of an estate litigation lawyer in Melbourne or other legal professionals.
Legal Requirements and Duty of Care
Executors act in the strict legal environment governing their conduct in the administration of estates. They are subject to the fiduciary obligation of acting in the best interests of the estate and its beneficiary, such that they ought to forego personal interests and draw conclusions solely on the basis of what is in the interests of the estate.
The law requires the executors to act with reasonable care and competence. Although they don’t have to be professionals, they should take the effort of learning what they ought to do from other individuals or seek professional advice when they ought. If they don’t, they will be personally liable in the event the estate incurs losses.
Executors are also required to keep comprehensive records of all dealings and decisions that they take during the administration period. These records provide insurance against possible challenges and reflect the extent to which the executor performed their duty.
Your Role as Executor is Vital
Being an executor is both an honour and a great responsibility. Being an executor is time-consuming and demanding in terms of details. However, efficient estate administration means the wishes of the deceased are upheld, and the true beneficiaries benefit in the end from the estate with no undue holds-ups or tensions.
If you’re named as an executor, don’t forget that seeking professional guidance when you need to is no sign of weakness but the prudent approach to doing your job well.