What are the responsibilities of an executor
Being named as an executor in a loved one’s Last Will and Testament is a big responsibility. It is important to understand what you are agreeing to before you step into the role as executor. First, it is important to know that just because you are named in the will as the executor does not mean that you are obligated to act as the executor. If you decide that the duties and responsibilities of being an executor are more than you are able to handle, you can renounce your position as executor in favor of the successor executor named in the will.
To determine if acting as an executor is a responsibility you want to accept, it is important to understand what your duties will be. Each estate is unique and the administration of an estate varies based on the assets the loved one owned, the debts they had, and what their wishes were regarding the division of their estate. However, there are general duties of an executor that remain the same despite the complexity of the estate.
The duties of an executor begin after the loved one dies, the executor is often involved in making the arrangements with the funeral home and providing the information necessary to apply for a death certificate. Once the death certificate is issued, the executor is responsible for probating the loved one’s will with the local Register of Wills in the county where the decedent last resided. Although an executor is not required to hire an attorney, it is a good idea for the executor to have legal representation to guide them through the administration of the estate.
Once the petition for probate is filed, and the Register of Wills has issued Letters Testamentary the executor has many duties to fulfill. It is important for the executor to faithfully carry out these duties, as failure to do so may result in personal liability. The duties of the executor include: (1) Gathering the assets; (2) Advertising the administration of the estate in a newspaper; (3) Giving notice to beneficiaries named in the will; (4) Obtaining an EIN for the estate; (5) Opening estate checking account; (6) Verifying and paying the debts of the decedent; (7) Liquidating and transferring the estate assets; (8) Filing final income tax returns; (9) Filing the Pennsylvania Inheritance Tax Return; and (10) Providing an accounting to the beneficiaries and distributing the estate in accordance with decedent’s will.
An executor is entitled to reasonable compensation for their services. The compensation is income taxable. There are many factors that determine what fee is reasonable for an executor. Those factors include, the gross value of the estate, the complexity of the estate, and the amount of time spent. Understanding the duties and responsibilities of an executor is important when deciding whether you want to act in this role.
The legal advice in this column is general in nature, consult your attorney for advice to fit your particular situation.
Rebecca A. Hobbs, Esquire is licensed to practice in the Commonwealth of Pennsylvania and is certified as an Elder Law Attorney by the National Elder Law Foundation as authorized by the Pennsylvania Supreme Court. She is a principal of the law firm of O’Donnell, Weiss & Mattei, P.C., 41 High Street, Pottstown, and 347 Bridge Street,