What Is an Executor of the Estate?
Estate planning is an area that is often neglected by many when planning out their financial lives. When you decide to engage in estate planning, you may want to name an executor for your estate. An executor is an individual who will oversee the distribution of your estate when you are gone.
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Estate Executor
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When you decide to plan your estate, you need to name someone to handle the process when you die. This person is known as an executor and it should be someone you trust. If you do not appoint an executor for your estate, the probate court will appoint an administrator, effectively placing control in the hands of the probate court. Generally, it is advisable to choose your executor when you create your will or trust.
Will Responsibilities
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When you die, it is up to the executor to find your will and take it to the probate court. The executor has to file a petition for probate at the local court and then appear at a hearing. The judge will want to look at the will and make sure that it is legally valid. At that point, the judge will provide the executor with the power to distribute the estate according to the will. The judge will conduct a review to make sure that the executor is doing it correctly.
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Financial Responsibilities
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The executor of your estate will have much to do with your finances after you are gone. For example, the executor may need to open a checking account in the name of the estate and transfer your various assets into it. Then the executor is in charge of paying off any outstanding debts that you might have. For example, he will have to file a tax return for your estate and pay any outstanding taxes due. The executor of the estate will also distribute any financial assets that you leave to your beneficiaries.
Transferring Property
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The executor of the estate is also in charge of transferring any property that you might have when you die. For example, if you have a piece of real estate that you want to transfer to a child, the executor will be in charge of making sure that the names are changed on the title. He will also transfer any other personal property that you may have such as a car or household items. In some cases, the executor will have to sell property to distribute cash to the beneficiaries of the estate.
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