Executor Duties: What They Can and Cannot Do

Being appointed as an executor of an estate is a significant responsibility. The role involves managing and distributing the deceased's assets according to their will and legal requirements. Understanding what an executor can and cannot do is crucial for fulfilling this role effectively and ensuring the estate is settled properly. This blog post outlines the key duties and limitations of an executor.

What Executors Can Do

1. Manage Estate Assets

One of the primary duties of an executor is to manage the deceased's estate assets. This includes securing and safeguarding property, managing bank accounts, and ensuring that valuable items are protected until they can be distributed to beneficiaries.

2. Pay Debts and Taxes

Executors are responsible for paying any outstanding debts and taxes owed by the estate. This involves identifying creditors, notifying them of the death, and settling any legitimate claims. Executors must also file the deceased's final income tax return and, if applicable, estate tax returns.

3. Distribute Assets to Beneficiaries

Once debts and taxes are paid, executors distribute the remaining assets to the beneficiaries as outlined in the will. This includes transferring ownership of property, disbursing funds from bank accounts, and handling any specific bequests mentioned in the will.

4. Communicate with Beneficiaries

Executors must maintain open and transparent communication with beneficiaries throughout the probate process. This involves keeping them informed about the progress of the estate administration, addressing their concerns, and providing updates on distributions.

5. Maintain Detailed Records

Executors are required to keep detailed records of all financial transactions related to the estate. This includes documenting expenses, receipts, and distributions. Accurate record-keeping is essential for providing a final accounting to the probate court and beneficiaries.

What Executors Cannot Do

1. Act Against the Interests of the Estate

Executors have a fiduciary duty to act in the best interests of the estate and its beneficiaries. They cannot make decisions that benefit themselves at the expense of the estate. Any actions that breach this duty can result in legal consequences.

2. Alter the Will

Executors do not have the authority to alter the terms of the will. Their role is to carry out the deceased's wishes as written. If there are ambiguities or disputes regarding the will, it is up to the probate court to interpret and resolve them.

3. Distribute Assets Before Paying Debts and Taxes

Executors must ensure that all debts and taxes are paid before distributing assets to beneficiaries. Distributing assets prematurely can result in personal liability for any unpaid debts or taxes.

4. Use Estate Funds for Personal Expenses

Executors cannot use estate funds for their personal expenses. All expenditures must be related to the administration of the estate. Misusing estate funds can lead to legal action and removal as executor.

5. Ignore Probate Court Orders

Executors must comply with all orders and requirements set by the probate court. Ignoring court orders or failing to fulfill their duties can result in legal penalties and removal from their role.

Conclusion

Being an executor involves a range of important duties and responsibilities. Understanding what executors can and cannot do is essential for ensuring the estate is managed and settled correctly. Executors must act in the best interests of the estate, adhere to the terms of the will, and comply with legal requirements. If you have been appointed as an executor and are unsure about your responsibilities, consulting with a probate attorney can provide valuable guidance and support.