If you have been named or appointed as an executor of an estate, you will be tasked with ensuring the estate is settled according to the deceased’s wishes. It is a significant responsibility that requires a careful approach to avoid exposing yourself to legal and financial liability.
You may, for instance, be liable for the estate’s outstanding debts if you distribute assets prematurely before clearing all the pending bills. Similarly, mismanaging estate assets or ignoring court orders can set you up for legal problems. Here are some tips to help avoid such eventualities and protect your interests.
Understand your responsibilities
An executor wears many hats, from initiating probate and filing the necessary paperwork to locating and valuing the estate assets. They are also responsible for paying the estate’s debts and taxes and distributing assets to beneficiaries. Familiarizing yourself with the role will help you understand your obligations and ensure legal compliance.
Communicate transparently
Maintain open and transparent communication with the beneficiaries and other interested parties. Be forthcoming with any details upon request and provide regular updates on the progress of estate administration to minimize the likelihood of misunderstandings and disputes.
Act in good faith
As an executor, you owe the estate and its beneficiaries a fiduciary duty that you must uphold. It means acting in their best interests at all times. Avoid pursuing personal gains at the expense of the estate and don’t neglect your duties.
Keep thorough records
Document all your dealing with the estate as an executor, such as financial transactions, communications and decisions. Proper documentation can provide evidence of your diligence if your actions are ever questioned.
A lot can go wrong during probate, and you may bear the brunt as the executor. As such, it’s prudent to consider seeking legal guidance as a precautionary measure or if you are unsure about any aspect of the role. It can help you confidently fulfill your responsibilities and avoid costly mistakes.