When someone passes away, their estate typically goes through a legal process known as “probate.” One of the central figures in this process is the executor. The executor is responsible for carrying out the terms of the deceased person’s will and overseeing the management and distribution of the estate. This position comes with a range of legal duties and responsibilities that must be fulfilled in accordance with state law.
Who Can Serve as an Executor?
An executor is typically named in the will of the deceased. This individual is often a family member, friend, or trusted advisor. If no executor is named, or if the person named cannot or will not serve, the court will appoint someone to take on the role. The court-appointed individual is usually referred to as an administrator, but their responsibilities are largely the same.
In Pennsylvania, an executor must be at least 18 years old and of sound mind. The court may disqualify someone from serving if there is evidence of dishonesty, incapacity, or a conflict of interest.
What Are the Executor’s Initial Responsibilities?
The probate process begins when the executor files a petition with the Register of Wills in the county where the decedent lived. Once appointed, the executor must obtain legal authority to act on behalf of the estate by receiving “letters testamentary.”
The executor is then responsible for identifying and collecting all assets owned by the deceased. This includes bank accounts, real estate, personal property, and investments. They must also notify beneficiaries named in the will, as well as potential creditors.
How Does the Executor Manage Estate Assets?
During probate, the executor must manage the estate’s assets with care and diligence. This may include maintaining property, collecting income owed to the estate, and paying necessary expenses. Executors are required to keep accurate records of all transactions, including receipts, disbursements, and account balances.
Estate funds must be kept in a separate account from the executor’s personal finances. The executor is responsible for preserving the value of the estate until it can be properly distributed to the beneficiaries.
Is the Executor Responsible for Paying Debts and Taxes?
One of the executor’s most important legal duties is to settle the financial obligations of the deceased. This includes paying outstanding bills, resolving any claims made against the estate, and filing necessary tax returns. In Pennsylvania, the executor is also required to file an inheritance tax return and may be responsible for federal estate tax filings, depending on the size of the estate.
The executor must determine which debts are valid and pay them in the correct order of priority. After all debts and taxes have been paid, the executor distributes the remaining assets to the heirs and beneficiaries named in the will.
What Happens if There Are Disputes?
Disputes can arise during the probate process. Beneficiaries may challenge the validity of the will or question the actions of the executor; creditors may contest the payment of certain debts. If disagreements occur, the executor may need to appear in court to resolve the matters.
Executors are expected to act in the best interests of the estate and maintain impartiality. If an executor is found to have acted improperly, the court can remove them from the position and appoint someone else to complete the process.
Can Executors Be Compensated?
Executors are allowed to receive compensation for their work. Pennsylvania law provides for “reasonable compensation” based on the size and complexity of the estate. The amount may be set by the will or approved by the court. If disputes arise over the fee, the court will evaluate whether the compensation is justified based on the time, effort, and responsibility involved.
West Chester Wills and Estate Lawyers at Eckell Sparks Provide Tailored Legal Guidance for Matters Relating to Executors
If you were named an executor or have probate questions, our West Chester wills and estate lawyers at Eckell, Sparks, Levy, Auerbach, Monte, Sloane, Matthews & Auslander, P.C. are here to help. For an initial consultation, call our Media and West Chester, Pennsylvania offices at 610-565-3701 or complete our online form.