3 Ways an Executor Can Stay Out of Trouble

By Wayne Jordan

Estate probate is a process. Your job as executor is straightforward: locate all the assets and debts, sell what property can be sold, use the money to pay all the confirmed debts, distribute what is left over, and file a tax return. By straightforward, I do not mean easy. The ease of settling an estate will depend on three things:

1. how much money is involved
2. the type and location of the assets and debts
3. how well the family gets along.

Executors and Estate Administrators (henceforth referred to only as executors) are not immune to the conflicts; indeed, they are often the target. But, executors take heart: you don't have to make every member of a quarrelling family happy. By your appointment as executor, you receive all legal authority to act on behalf of the decedent in matters pertaining to closing out the estate. Whether the heirs like it or not, the decisions are yours to make. You were placed in this position of trust by the court. Executors are held to what is known as the "reasonable person" standard: the executor owes the estate a duty to behave as a reasonable person would under the same or similar circumstances. Your obligation is to act honestly and prudently and execute your duties in a timely fashion. As long as you don't violate that trust, the court will likely support your actions.

If challenged, you need to be able to provide evidence as to when and why you made a certain decision or performed a certain act. The best way to provide evidence is to keep a contemporary record of your actions. If a legatee claims that a conversation with you never took place, it helps immensely to be able to pull out your journal and say "according to my written record we spoke on June 30 at 2pm; we discussed XXX and you said XXX". It's doubtful that anyone else will be taking notes; the fact that you are helps establish your conscientiousness and credibility. To establish a good contemporary record, do the following:

1. Keep track of your phone calls and conversations. When you make a call, write down the details. When did you call? What did you discuss? What was the substance of the conversation? What action items resulted from the conversation?
2. Keep all the ancillary papers that you acquire in the execution of you duties; not just receipts, but bank & investment brochures, bills of sale, and repair estimates; you never know when you may need to explain why you chose a particular bank, repairman, or investment.
3. When you conduct estate business face-to-face with anyone, take notes.

Remember, executors: you don't have to keep all the family members happy, you just have to keep the Judge of the Probate Court happy. His Honor is a busy man, and if you have kept good records, acted prudently, and kept to the schedule he will be happy.

Wayne Jordan is a Virginia licensed Auctioneer, Certified Personal Property Appraiser, and Accredited Business Broker. He specializes in the Valuation and Liquidation of Estate and Business assets. Learn more at his website http://www.waynejordanauctions.com or his blog http://www.wayne-jordan.blogspot.com.

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Will Executor - Things to Consider When Establishing Your Estate

By Simon Volkov

Will executor refers to an individual or organization that has been designated to administer the estate of a deceased person. Other common names to describe this position include personal probate representative, estate executor, administrator, estate agent, and probate administrator.

Regardless of the label, a will executor wears many hats and is responsible for a variety of duties. Typically, estate executors are appointed through a Last Will and Testament. When decedents die intestate (without a Will), the administrator will be appointed by a probate judge.

Nearly every estate must undergo the process of probate. The only way to keep assets out of probate is by establishing an irrevocable life insurance trust or living trust. Even when trusts are executed a will executor must be designated to make certain assets are distributed to designated heirs.

When selecting an individual to oversee an estate, it is important to talk to the person and obtain their permission. Administering an estate can be challenging, time-consuming and emotionally-charged. Will executors must be of legal age and cannot possess any felony convictions.

Most people appoint a close family member or personal friend. Others hire professionals such as estate planners or lawyers. In any case, will executors are compensated for their time. Estate administration fees are regulated by each individual state. Some states compensate executors on an hourly basis. Others pay a percentage of the estate value or a flat-fee.

Many considerations exist when appointing an estate executor. One factor to consider is family dynamics. Death can bring out the best and worst in people. It is not uncommon for family disputes to erupt over who should receive an heirloom necklace or piece of antique furniture.

Estate planning experts recommend appointing two will executors. If the primary administrator is unable to fulfill their duties, the second named executor can rapidly take charge. In most cases, will administrators work with an estate planning service or probate attorney to ensure documents are properly filed through the court system.

Duties of will executors include securing estate assets, notifying creditors, paying outstanding debts, obtaining property appraisals, and distributing assets to designated beneficiaries. If heirs exist who are missing, administrators must work with an attorney and attempt to locate and notify them of impending inheritance.

Estate planning is an important part of life planning. Regardless of how much or how little property you own, it is important to draft a will and state who should receive your belongings in the event of death.

If you die without a will, a judge will appoint an executor and determine who receives assets based on probate laws. Don't leave this to chance. It is relatively easy to draft a Will and most attorneys charge a nominal fee to legally execute the documents on your behalf.

Simon Volkov specializes in buying probate assets from will executors. This valuable service allows administrators to sell estate assets in exchange for a lump sum cash payment, which can expedite the probate process. See what options are available by visiting http://www.SimonVolkov.com today!

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Helping Your Executors - Solicitor's Tips

By Tim Bishop

Probate solicitors appreciate the difficulties in acting as an executor for an estate. However, these difficulties can be ten-fold if the testator has not anticipated them and tried to make things easier.

There are steps you can take to make sure your executors are able to administer your estate as efficiently as possible. You should contemplate the ideas listed below:

1. Keep a list of all your investments, bank accounts, premium bonds, insurances, pensions and other allowances, shareholdings and other valuables. Keep a copy at home in a safe place, and ask your solicitor to put a copy with your will. Update this periodically.

2. Include details of your buildings and contents insurance on this list. It is important your executors notify them of what has happened and agree with them arrangements for visiting the property etc if it is empty. Make sure your executors know the code to your security alarm, if relevant.

3. If you have particular funeral wishes, make sure your executors are aware of these. You can leave a memo with your will that includes these. Being faced with having to arrange a funeral when you do not know what the person's wishes were is very stressful.

4. If you move home, make sure you inform both your solicitor and executors. It sounds obvious but in the stress of the move, many people forget!

5. Make sure details of any "free insurance - often provided with bank accounts - are kept.

6. Keep all original documents, such as share certificates, passbooks, bank statements, insurance policy documents - together and in a safe place - ensure that the executors know where to find them and have any codes or keys they need to access them.

7. Contemplate including any pension death benefits or life assurances in a Trust so that payouts are made directly to the beneficiaries under the will, rather than into the estate. This can mean your beneficiaries pay reduced inheritance taxes, whilst releasing cash for them sooner.

8. Register any title to land you own with the land registry if this has not already been done - this may facilitate a subsequent transfer.

9. Keep your will in a safe place - many solicitors will store your will for you in a safe facility free of charge. Make sure your executors know where the original is.

10. Make sure your executors know the name and contact details of your solicitor, so they can get help and advice if they need it.

11. To ensure that your executors can claim all available inheritance allowances on your death, if relevant keep a copy of your birth and death certificate with your will and, if relevant, those of your spouse together with a copy of your marriage certificate.

Obtaining probate following the death of love of a loved one can be complex as well as hard to handle emotionally following the death of a loved one. Most probate solicitors can you handle probate - alternatively when preparing your will, you may prefer to appoint your trusted solicitor as a professional executor on your behalf.

Bonallack & Bishop in Salisbury are a firm of specialist probate solicitors with a team experienced in contested wills. Senior partner Tim Bishop is responsible for all major strategic decisions and has expanded the firm by 1000% in 12 years. He has plans for its continued growth, seeing himself as a businessman who owns a law firm.

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An Estate Executors' To-Do List

By Wayne Jordan

I just got off the phone with Nancy. She is feeling a bit overwhelmed. Her mother has just died, and Nancy has been appointed executor of her mothers' estate. Nancy has a full time job and a family of her own. Her mom lives in a different state. Nancy doesn't see how she will have time to be an executor, but her sense of loyalty to her mother and responsibility to her family compels her to step up to the plate and get the job done.

Nancy is in for some tough times. While still dealing with the emotional loss of her mother, she will have to empty her mothers house of forty-five years of accumulated memories. Everything in the house will have to be inventoried and values assigned. Her mothers doll collection and her fathers coin collection will have to be appraised. The inventory and appraisals will have to be submitted to the Probate Court. Property will have to be distributed to the heirs according to the Will. Then, the entire contents of the house, the furniture, appliances, bedding, pots & pans, clothing, car, even the lawn tools will have to be sold so that the house can be readied for sale. When both the titled and non-titled property are liquidated, the debts and taxes will have to be paid to settle the estate.

My purpose here is to help executors like Nancy understand the big picture of what must be done to settle an estate. Keep in mind that I am not a lawyer or an accountant, and I am not offering legal or accounting advice. The information I am offering is based on my experience as an Estate Property Specialist. If you have questions or concerns, my recommendation is to seek legal advice. A good Estate Attorney is an asset.

Let's start with an overview of an Executors' responsibilities. As executor, your first duty is to initiate probate, which is the formal process of proving the Will and confirming your appointment as executor. The Clerk of your county Probate Court can provide you with the forms that are appropriate for your county. My experience with probate court clerks is that they are very helpful and responsive to your requests. Many of the forms you will need can be downloaded over the internet at your state or county website.

The details and deadlines in settling an estate will vary from state to state. In general, there are 16 items that will be on your to-do list.

They are:

1. Locate the will
2. Apply to appear before the Probate Court
3. Notify the beneficiaries named in the Will
4. Determine the debts of the deceased
5. Arrange for publication of "Notice to Creditors" and mail a notice to each known creditor
6. Send notices of the persons death to post office, utilities, banks, and credit card companies
7. Collect any money owed to the deceased
8. Inventory the assets, assign values, and have appraisals done if necessary
9. Check with the deceased's employer for unpaid salary, insurance, and other employee benefits.
10. file for Social Security, civil service or veterans benefits
11. File for life insurance and other benefits
12. File federal and state tax returns
13. Pay valid claims against the estate
14. Distribute assets and obtain receipts from beneficiaries
15. File papers to finalize the estate 16. Obtain a lawyer or accountant, if necessary.

Do you need a lawyer or accountant? Technically, no. There is no law in place that says you must have an attorney, or that estate taxes must be done by an accountant. But, remember this: taxes and probate can be complicated issues. Mistakes will delay the closure of the estate and the distribution of inheritances. A good lawyer and/or accountant is an asset. Legal and accounting fees are paid by the estate. My advice is to shop around for an experienced probate attorney. Fees vary widely, so be sure to find out what the estate will be charged for legal services before making a commitment.

I'll give you the same advice I gave Nancy: Stay organized, and you will be able to get through this. Find out what your deadlines are, and make a check list with to be done by dates. Prioritize your tasks, and dig in. Having a checklist will help you maintain control and minimize the effect on your personal life.

Wayne Jordan is a Virginia licensed Auctioneer, Certified Personal Property Appraiser, and Accredited Business Broker. He specializes in the Valuation and Liquidation of Estate and Business assets. Learn more at his website http://www.waynejordanauctions.com or his blog http://www.wayne-jordan.blogspot.com

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