The Unexpected Challenges of Being an Estate Executor

Being named as the executor of someone’s estate might seem like a simple task – just follow their will and distribute their assets, right? But in reality, it’s much more complex, time-consuming, and emotionally draining than most people realize. If you’re thinking about naming an executor in your estate plan or have been asked to serve as one, it’s important to understand the responsibilities and challenges that come with the role.

Before we dive in, let’s clarify a few terms. If someone has a?will, their estate is handled by an?executor. If they have a?trust, the person in charge is a?trustee. And if someone is still alive but unable to manage their affairs, a?power of attorney?steps in. Each role has different responsibilities, but in this article, we’ll focus on the executor – who takes over after someone has passed away.

The financial burden executors often face

One of the biggest surprises for many executors is the financial responsibility that comes with the role. When someone dies, their assets are typically frozen until the court gives the executor the authority to manage them. This legal process – called probate – can take months or even years, leaving the executor to cover expenses in the meantime.

For example, funeral homes require immediate payment, which can range from $10,000 to $25,000 or more. While the executor can eventually get reimbursed from the estate, they often have to pay these costs upfront. The same goes for other bills like property taxes, mortgage payments, utilities, and insurance.

In some cases, the court may also require the executor to pay for a bond – an insurance policy that ensures they handle the estate properly. This can cost thousands of dollars, depending on the size of the estate. Without proper planning, an executor could be stuck paying out of pocket for months before they have access to estate funds.

The overwhelming paperwork

Managing an estate means dealing with a mountain of paperwork. The executor must gather financial records, track down bank accounts, file tax returns, submit court documents, close accounts, notify creditors, and more. Many financial institutions require specific forms or even a?medallion signature guarantee, which adds extra steps to an already long process.

If the deceased didn’t leave a clear list of their assets, the executor might spend months searching for hidden accounts or property. And if they can’t find everything, some assets could end up lost, eventually turned over to the state as unclaimed property. Sadly, this happens more often than you’d think.

Dealing with family conflicts

Beyond the legal and financial challenges, executors often find themselves navigating difficult family dynamics. Even when a will clearly outlines how assets should be distributed, disagreements can arise. Family members may feel certain assets were promised to them, or they may not agree with the executor’s decisions. In some cases, these disputes can lead to legal battles, causing tension and broken relationships.

The executor’s role is to follow the deceased’s wishes, but that’s not always easy when emotions are high. Trying to stay neutral while grieving and managing expectations from family members can be incredibly stressful.

How to make things easier for your future executor

If you’re creating an estate plan, there are steps you can take to make the process smoother for your executor:

• Create a clear asset inventory?– List all your accounts, investments, and property, including how to access them. This prevents assets from being lost or overlooked.
• Set aside emergency funds?– Having a designated fund to cover funeral costs and other immediate expenses can ease the financial burden on your executor.
• Consider using a trust?– A properly set-up trust can help your family avoid probate altogether, allowing assets to be transferred more quickly and with fewer complications.
• Choose the right executor?– The best person for the job isn’t always your closest relative. Pick someone who is responsible, organized, and emotionally prepared to handle the role.
• Communicate your wishes?– Having a conversation with your family now can prevent confusion and disputes later.

How I can help

As your attorney, I can help you create a?Life & Legacy Plan?that simplifies the executor’s job and ensures your loved ones are protected. I’ll work with you to create a?comprehensive asset inventory, structure your estate to minimize probate, and provide guidance on choosing the right executor. And when the time comes, I’ll be here to support your family through the process.

At Cheever Law, APC, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.

To learn more about our one-of-a-kind systems and services,?contact us?or?schedule a no-obligation 15-minute introductory phone call?today.