When someone passes away and leaves a will, they usually name an executor to handle their estate. In California, being an executor comes with important legal responsibilities.
Executors are fiduciaries, which means they must act in the best interests of beneficiaries. Here are some of the key legal duties of an executor.
Manage the estate’s assets
The first key duty of an executor is to locate and take control of the deceased person’s assets. This includes bank accounts, real estate, personal belongings and other property. The executor must also make sure these assets are protected. For example, they may need to secure vacant property or continue insurance coverage. An inventory of the estate’s assets should also be filed with the probate court.
Pay debts and taxes
Executors must identify any outstanding debts and notify creditors of the death. The executor is also responsible for filing the deceased person’s final income tax return and paying any income taxes owed. They’re also responsible for any paying estate taxes. If taxes or debts owed are not paid, the executor may be held personally liable.
Distribute the assets
Once debts and taxes are paid, the executor distributes the remaining assets according to the will. This must be done fairly and with court approval if required. In some cases, disputes among heirs may arise. The executor must remain neutral and follow legal procedures to resolve any issues.
An executor has a very important role in estate planning. They manage the estate and distribute the assets in it according to the wishes of the testator. To learn more about the estate planning process in California, it’s smart to seek legal guidance.