When the death of a loved one happens unexpectedly, you might find yourself thrust into the role of executor for your relative. It is natural to worry about legal pitfalls since mishandling your estate responsibilities could lead to litigation against you. Fortunately, taking the right actions can prevent problems.
Executors have fiduciary duties to the estate and heirs. These duties inform how you handle the estate going forward.
Refrain from taking estate property
As executor, you have access to estate accounts, property and valuables. Taking any of it for personal use is a breach of your fiduciary duty. Even if you think you can “pay it back” later, do not take anything that does not belong to you, as beneficiaries might accuse you of stealing their inheritance.
In addition, you have a duty to maintain the value of estate assets. Do not let real estate deteriorate due to lack of maintenance. Be careful about making unwise investment decisions that lose money. Take reasonable care of valuables like jewelry, art and antiques. Document your efforts to preserve assets to satisfy the heirs.
Resolve estate debts
Before distributing inheritances, you must settle the debts and taxes owed by the estate. This includes paying off mortgages, credit cards, medical bills and any loans. You must also file necessary tax returns and pay taxes owed by the estate. Failing to address these obligations risks legal trouble.
Stick to the will
Your primary duty is to carry out the wishes of the deceased as outlined in the will. Do not change beneficiary allocations or add or remove heirs. Follow the directions of the will for distributing assets. Going against the will could prompt lawsuits from disgruntled beneficiaries.
Maintain communication with heirs
Keep heirs updated about estate matters. Send them notice of the death of the decedent. Also provide periodic progress reports and share an inventory of assets. Being transparent and communicating regularly avoids misunderstandings.
Settling an estate with care helps ensure assets go where the deceased wished. Avoiding missteps protects you legally and preserves family harmony. With caution and common sense, you can successfully fulfill your executor duties.