What a First-Time Executor Should Know
There might come a time when you may be asked to serve as the executor of a loved one’s estate. Being named the executor of an estate can be a great honor. It can be an opportunity for you to help a loved one who has been there for you in times of need. If you have already lost a loved one who named you as the executor of their estate in their Will, you may have many questions. This article shares some crucial things that first-time executors should know.
Accepting the Role of an Executor
Being named the executor of a deceased loved one’s estate can be a great honor, but it is a significant responsibility. Accepting this role should include some reflection, research, and analysis. You need to ensure the role is a fit for you. It is vital to note that when named as an executor in a Will, you are not obligated to accept the role. If you feel the role of an executor is too burdensome or can’t serve as executor due to other reasons, you can decline the role.
Understand the Responsibilities of an Executor
If you are asked to be the executor of a deceased loved one’s estate, it is vital that you take time to understand the responsibilities of an executor. The primary role of an executor is overseeing the administration of the decedent’s estate. The executor is responsible for ensuring the deceased’s estate is administered according to the instructions in the Will. The executor needs to attend to several items, including the following;
- Filing the Will and probate petition in probate court
- Notifying beneficiaries and creditors of the probate proceedings
- Gathering the deceased’s assets
- Valuing the assets
- Paying off debts
- Filing taxes
- Maintaining detailed records
- Distributing remaining assets
After understanding an executor’s responsibilities, you can decide whether to accept or reject the role. If you accept the role, starting your work with an understanding of what is expected will make work easier.
Compensation for the Executor Role
One common question about serving as the executor of a decedent’s estate is whether an executor gets paid for their work. Executors are usually entitled to compensation. In California, executors receive compensation based on the value of the estate. According to California probate Code Section 10800, the executor receives;
- 4% of the initial $100,000
- 3% of the following $100,000
- 2% of the next $800,000
- 1% of the subsequent $9 million
- 1/2 % of the next $15 million
For amounts exceeding $25 million, the court determines a reasonable amount for the executor.
Professional Help Is Crucial
It is crucial that executors seek professional help and avoid handling the probate process alone. Probate attorneys, accountants, tax professionals, financial advisors, and appraisers are just a few of the professionals an executor may need to consult. Consulting with various professionals can ensure the proper administration of the estate.
Contact Us for Legal Help
If you have questions or are looking to hire a probate attorney, contact the skilled and dedicated California probate attorney, Robert L. Cohen – The Probate Guy – today to schedule a telephonic consultation.
Southern California Probate Lawyer Serving Orange, Riverside, Anaheim, Whittier & Beyond.
Source:
leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=10800.&lawCode=PROB
