When you create an estate plan and write a will, you name an executor to oversee your estate when you pass away.
When deciding who to choose as the executor of your estate, you should consider what the responsibilities of an executor are before making any decisions.
Collect and inventory assets
The executor must collect and list all assets that belonged to the deceased. Include money market accounts, investments, real estate and personal items. Accounts with beneficiaries, such as retirement accounts or life insurance policies, and bank accounts that are payable on death will not go through probate and will distribute directly. File a completed inventory of assets with the court.
Pay the deceased’s debts
The executor does not use their personal funds to pay. Payment for debts comes out of the estate. Debt for an estate may include medical bills, credit card bills, personal loans, mortgages, car loans and utility bills. The estate is responsible for the funeral expenses of the deceased. The executor must also file taxes for the deceased and pay any tax debts.
Divide the estate among the beneficiaries
Once the court has approved the inventory for the estate and all debts paid, the executor distributes what remains in the estate among the beneficiaries as stipulated in the will.
Being an executor is time-consuming. In Florida, executors may receive a small percentage of the deceased’s estate as compensation for carrying out their duties. The percentage varies based on the overall value of the estate. Choose an executor you trust will faithfully and honestly carry out all responsibilities.