Responsibilities of an Executor of an Estate
By Matt Rose, CFP®, Financial Advisor / Retirement Plan Consultant
Clients often come to us with questions on estate planning. We at MCF are here as a guide and resource to help you navigate the decisions you must make while drawing up your estate plan. One decision you must make during the estate planning process is choosing an executor. Someone you trust to ensure your wishes are carried out. Let’s walk through what being an executor involves.
Being appointed as an executor of an estate is both a significant responsibility and a position of trust. An executor of an estate is appointed to administer the last will of a deceased person and carry out the directions to manage the affairs. This role involves several key responsibilities that require careful attention to detail and adherence to legal and ethical standards.
To start, an executor is responsible for initiating the probate process. Probate is the legal determination of the distribution of a decedent’s assets. The executor must file the will with the appropriate court, identify all assets and debts of the deceased, and notify both beneficiaries and creditors.
The executor must manage the financial affairs of the estate wisely. This includes paying debts and taxes owed by the deceased, ensuring all expenses related to estate administration are properly accounted for, and safeguarding assets. These assets can include investments like stocks or bonds, real estate, collectibles and more. The executor may need to seek professional advice from lawyers or financial advisors to handle these matters appropriately.
The distribution of assets must be facilitated by the executor in a transparent and fair manner. Communication plays a very important role in the executor’s responsibilities as they must keep beneficiaries informed and respond to their inquiries. Clear and timely communication reduces the likelihood of disputes among beneficiaries, which can arise due to misunderstandings or delays in the entire process.
Executors have a fiduciary duty to act in the best interest of the estate and its beneficiaries. The executor must prioritize the beneficiaries’ interests over personal interests and help settle the estate in accordance with the law and the decedent’s wishes. Executors can be held personally liable for any losses incurred due to negligence or misconduct.
Serving as an executor is a complex role that requires communication abilities, emotional intelligence, financial acumen and organizational skills. While it can be a challenging and time-consuming role, fulfilling executor duties is essential to preserving the legacy of the deceased and supporting their loved ones during a difficult time.
We at MCF are here to help you through the estate planning process. We want to be your partner as you make these decisions to help ensure your family will be taken care of. Please reach out to any member of our Team to discuss your estate planning needs.
1 Investopedia “What is an Executor?”
IMPORTANT DISCLOSURE INFORMATION
MCF Advisors, LLC (“MCF”) is an SEC-registered investment adviser. Registration as an investment advisor does not imply a certain level of skill or training. The oral and written communications of an advisor provide you with information about which you determine to hire or retain and adviser. More information about the adviser can also be found by visiting: https://adviserinfo.sec.gov/firm/summary/130372. The above commentary is for informational purposes only. Information prepared from third-party sources is believed to be reliable though its accuracy is not guaranteed. This is not intended as an offer or solicitation with respect to the purchase or sale of any security. MCF may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Please remember that past performance is not indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by MCF), or any non-investment related content, made reference to directly or indirectly in this blog/newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog/newsletter serves as the receipt of, or as a substitute for, personalized investment advice from MCF. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. MCF is neither a law firm nor a certified public accounting firm and no portion of this content should be construed as legal or accounting advice. A copy of MCF’s current written disclosure statement and customer relationship summary (“Form CRS”) discussing our advisory services and fees continues to remain available upon request. The scope of the services to be provided depends upon the needs of the client and the terms of the engagement. If you are an MCF client, please remember to contact MCF, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services.