The Executor's Role
Following an individual's death, a personal representative must be approved to gather assets, administer the estate, pay debts and expenses and distribute the assets of the estate. This is the role of the executor that was appointed under the descendent individual's Will. In the absence of such an appointment, the probate court will appoint an administrator whose duties will be the same as those of an executor. The executor’s duties can be summarized as follows:
Arrangeand Prepare for Probate. This includes notifying creditors, banks, the descendent's employer (or last employer, if receiving a pension) and the Social Security Administration (if receiving Social Security); and opening the necessary bank accounts for the estate.
Assemble Inventory and Take Custody of Assets. This includes taking inventory and valuing assets; filing claims for life insurance and Social Security death benefits; and reviewing the descendent's financial records.
Administer the Estate. This includes collecting all income and paying all debts; monitoring any closely‑held businesses and managed investments; and determining the effect of and requirements for non‑probate assets.
File Income Tax Returns. This includes not only filing the final income tax return for the descendent, but also maximizing any income tax planning opportunities for the estate and beneficiaries.
File Estate Tax Returns. This includes determining credits and deductions available and how best to use them; determining the date to use for valuing assets (date of death or six months later as permitted under the federal estate tax law); and filing the federal estate tax return and all state returns, as required.
Distribute the Estate. This includes distributing assets to beneficiaries; providing beneficiaries with the basis of assets; and preparing final documentation as well as receiving final releases, as required.