One of the many outcomes of the COVID epidemic is that more people are thinking about their estate planning. Wills have become a focus, either reviewing or creating new ones. An important part of a will that gets little attention is the Executor, the person who follows your wishes and makes sure that your goals for your estate are accomplished. One of our clients who had to take up that job for a family member that passed away, was overwhelmed and not at all prepared for the task. It can a treasure hunt where it is hard to find heirs and assets. It is better to ask the person you want to appoint as executor and inform them about their task. Here are some tips on how to make the challenge of managing an estate easier.
Talk it over
If you are asked to be an executor, go out for coffee and say ‘this might be an uncomfortable conversation, but let’s just have it’. Ask all details about the will and what the person wants to happen with the estate. If you are being trusted to be the executor, you should be allowed to read the will. Be prepared for surprises. If you feel uncomfortable, ask the will writer to explain in a letter of instruction. And also ask the person to communicate your role to other family members.
The human side can be difficult, too: You may need to pacify impatient heirs or mediate domestic squabbles. You might want to consider using an estate attorney to help navigate these choppy waters.
Hire an attorney
In general, an estate attorney for guidance in the process can be invaluable. You can save on fees by doing most of the administrative work yourself (and also get paid for it); an attorney is current on laws and will prevent you from missing important steps and assets.
Start the process
Upon the person’s death, nothing can happen until you locate the will-the original, not a copy. File the will and the death certificate with the probate court to obtain a letter of testamentary, which recognizes you as the executor, a required step before you can take any actions on behalf of the estate. You should order at least a dozen extra certified copies of the death certificate; you may need more depending on the estate and the number of accounts – bank, investment, retirement, pension account – count them up as you organize the paperwork. You’ll also need those copies for a host of tasks: canceling credit cards, selling a home, transferring title to a car, shutting off utilities.
Safeguard property
A vacant house can attract thieves who scan the obituaries; relatives and neighbors can act badly, too. Move jewelry and valuable to a secure place. Also, homeowner’s insurance does not protect vacant property. You need to lock up and secure everything, immediately. You may need to change the locks. Photograph the inside of the home to document its contents. People think they have a right to property, it is not uncommon for relatives to help themselves to what the perceive is rightfully theirs.
Get Organized
Start a detailed to-do list, maintain meticulous records, and create a spreadsheet of assets and liabilities. Your duties such as maintaining and selling an unoccupied house, stopping Social Security payments, settling any debts, closing financial accounts and meeting tax filings are as complicated as running your own life.
Personal Items
Allocating personal assets can be tense. Ensure the process is fair by putting a system in place for dividing possessions. Families can fight about who gets which sentimental items like grandmother’s candy dish; the smallest items of value can cause the most amount of aggravation for an executor.
Communicate
Prepare heirs to be patient and informing them that nothing can be paid out till all taxes and debts of the estate are settled. Remember the heirs are people with a history with the deceased and most likely each other. They may be your siblings. It is not uncommon for jealousy and mistrust to arise, if your role has not been communicated carefully by the deceased. Providing regular updates, communicating what is happening and being transparent is the best way to smooth bad feelings. Many a family is torn apart through misunderstandings.
Most importantly, you can say “no” when asked to be an executor. “Thank you for trust in me but I don’t think it’s right for me.”
Anja & Clare
