When someone passes away, he or she leaves behind an estate—the assets owned during life. A Will directs where certain types of assets go, but someone has to carry out these wishes. This responsibility falls on the Executor, or Personal Representative. This means that there are some very important duties the Executor takes on.
If you’ve been named as an Executor, it’s essential to know the scope of this role. It’s not just about paperwork. It’s essentially like taking on a part-time job that requires careful management over months. In some cases, the estate’s administration may last a year or more.
While an attorney and CPA will assist, you’re the one responsible for making sure the estate is handled properly. This means keeping up with deadlines, gathering information, and ensuring Beneficiaries stay informed.
Here’s an overview of the main duties an Executor has. For purposes of this article, we will assume the Decedent (deceased person) had a Will. But the duties are fairly similar for an Administrator, who is the representative of an estate for which there is no Will.
Executors Must File a Petition for Appointment
Your first step as Executor is to file a petition with the probate court to be officially appointed. This petition should be filed in the county where the Decedent lived when he or she died.
In Rutherford County, Tennessee, the General Sessions Court is the probate court. In most other counties, such as Williamson County, the Chancery Court Clerk & Master handles decedent’s estates.
Without court appointment, you don’t have legal authority to manage the estate’s assets. You’re technically not officially the Executor until the court issues an order stating such and grants Letters Testamentary.
Along with the petition, you’ll need to file the original Will. Beneficiaries of the Will also should be notified of the proceeding, as well as the heirs-at-law (next of kin). At this point, it’s a good idea to have an attorney assisting with the process of opening the estate.
Executors Must Create Estate Accounts
Once you’re appointed as Executor, you’ll need to apply for an Employer Identification Number (EIN) for the estate. The EIN is the estate’s taxpayer identification number. There’s an easy way to apply for an EIN online using the IRS’s free EIN Assistant.
With the EIN, you can then open an estate bank account. This account will hold all estate funds, including income and proceeds from any asset sales. It’s essential to keep these funds separate from personal accounts, as these assets belong to the estate and not to the Executor personally.
Executors Have a Duty to Gather Assets and Prepare an Inventory
One of the key duties of an Executor is gathering all of the Decedent’s assets into the probate estate. This includes everything from bank accounts to personal property. Real estate is generally not a probate asset unless the terms of the Will expressly include it in the estate.
Depending on the complexity of the estate, you might need to track down various accounts and get valuations for certain assets. The law requires a record of these assets be filed with the court within 60 days after the grant of Letters Testamentary.
But the Will may waive the requirement for an inventory. The Beneficiaries may also agree to waive the inventory if all of them sign off. This reduces the administrative burden on the Executor, as well as the overall costs of Administration.
The Executor Has a Duty to Notify Creditors
As the Executor, you must notify creditors of the Decedent’s death. After the court admits the Will to probate and grants Letters Testamentary, there is a formal Notice to Creditors published in a newspaper of local circulation.
The Executor must also notify known creditors directly that the Decedent died and the creditor claims period is open.
Once notified, creditors have a limited time to file claims against the estate. In Tennessee, this deadline is four months. It’s important to stay organized and keep track of any claims that come in.
Executor’s Duties to Pay and Negotiate Estate Debts
Part of an Executor’s duty is to settle any outstanding debts the Decedent left behind. This will usually include credit cards, personal loans, and medical debts. But not all creditor claims are valid.
The Executor can challenge claims against the estate by filing what’s called an Exception. It basically says that the Executor does not know the details of the claim and demands the creditor make its case. If the creditor doesn’t respond or show up to the hearing, the court will usually dismiss the claim.
If a debt is valid, the Executor generally must pay the balance owed from the estate’s assets. Executors should demand that creditors prove their claims, such as by showing the original credit contract or promissory note.
Failure to produce such documents could also be grounds for the court to dismiss the claim. This means more for the Beneficiaries of the estate.
Note that secured debts, such as auto loans and mortgages, stay attached to the underlying asset. The beneficiary may have to pay off the loan, assume the loan, or refinance the loan in order to keep the asset.
Executors Have a Duty to Properly Distribute Assets
Once the estate handles all debts and any taxes, the Executor has a duty to distribute the remaining assets to the Beneficiaries. The Executor should pay out legacies as soon as possible and not hold the assets in the estate for too long. Failure to distribute can lead to liability for breach of fiduciary duty.
Before distributing anything, have all potential issues resolved, such as creditor claims or disputes between Beneficiaries. Distributing assets too soon can create problems if additional debts or disputes appear later.
The Beneficiaries generally should sign a document called a Receipt and Waiver. This document acknowledges distribution of their share of the estate, and requests that the court relieve the Executor of his or her duties without having to file a more detailed accounting.
Filing a Final Accounting and Closing the Estate
The final step is filing a final accounting with the court, unless the Will or Beneficiaries waive this requirement. This document details all the income, expenses, and distributions made during the estate’s administration.
Once the court approves the accounting, or if the Beneficiaries waived it, you can officially close the estate. The attorney may also file the final order to close the estate and a copy of the Will with the Register of Deeds.
If there are any outstanding court costs or attorney’s fees, the estate should also pay these balances. At this point, your role as Executor ends.
Final Thoughts on the Duties of an Executor
Being an Executor is not just a title. It’s a significant commitment. It requires initiative, organization, and a careful attention to detail. Many people, including those making their Wills, often fail to appreciate the hands-on nature of the role.
Your attorney and CPA will handle many of the legal and tax aspects. But the day-to-day management ultimately falls on you. Understanding the scope of this role will help you better prepare and ensure that you properly carry out your duties as Executor.
Connell Law, PLLC assists residents of Rutherford and Williamson Counties with probate and estate administration. To request a free probate consultation, reach out to us today.
