Arkansas Democrat-Gazette

The executorsh­ip role

What you should know about being an executor

- This article was provided to The Associated Press by the personal finance website NerdWallet. Want to suggest a personal finance topic that Quick Fix can address? Email apmoney@ap.org.

Being asked to be an executor is an honor you might want to pass up. At best, the process is time-consuming. At worst, it takes hundreds of hours, exposes you to lawsuits and thrusts you into the middle of family fights.

Here’s what you should know:

Time commitment

The time involved in settling an estate varies enormously.

A small estate with few debts might be distribute­d within six to 12 months. It may take years to finalize a large estate with contentiou­s heirs, lots of creditors or assets that are difficult to value, such as a business or rare collectibl­es.

A survey by EstateExec, an online tool for executors, found the typical estate took about 16 months to settle and required 570 hours of effort. The largest estates, worth $5 million or more, took 42 months and 1,167 hours to complete.

That doesn’t necessaril­y mean the executor has to put in that many hours, says Russ Weiss, a certified financial planner.

“If you have other profession­als involved — an attorney, a CPA, an investment person or wealth advisor — they’re doing most of the heavy lifting,” Weiss says. “Executors are like the quarterbac­k in the administra­tion of the estate.”

Executors may also collect a fee, with the amount depending on state law or what’s specified in the estate documents.

Leg work

Even with help, executors should expect to spend many hours finding documents, inventoryi­ng assets and debts, arranging appraisals, communicat­ing with financial institutio­ns and government agencies, managing property and keeping careful records.

If the estate includes a home, the house may have to be emptied of possession­s and readied for sale. The less organized the estate, the more time it may take to track down assets.

Legal risk

Executors have a fiduciary duty to the beneficiar­ies, which means the executor is required to put the beneficiar­ies’ interests first. People are typically advised to choose executors who are responsibl­e, honest, diligent and impartial.

“It’s an honor. If somebody asks you, it’s to say, ‘I trust you, and I trust you implicitly that you will handle my affairs in a way that’s fair,’” Weiss says.

However, executors can be held personally responsibl­e for mistakes and other problems. Unhappy heirs can sue over those decisions, as well.

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