As the executor of an estate, you’re staffed with more responsibilities than you probably realize. By taking a high level overview of the situation early on, you’ll soon understand what you’re up against and how to move through the process in an efficient manner.
The one thing you never want to do is make a costly mistake. Fortunately, when you protect against these in advance, there’s less chance of running into trouble.
Here are five mistakes estate executors must avoid :
- Agreeing to be the executor if you’re not comfortable: When someone asks you to be the executor of their estate, you have the right to say no. You don’t have to agree, even if you’re close with the person. Furthermore, even if you do agree, you can still turn down the responsibility when the time comes.
- Neglecting to review the trust or will in great detail: You shouldn’t do anything as an executor until you are 100 percent sure of what the trust or will says. If there is any gray area, clear it up before pushing forward.
- Jumping the gun with distributions: You’re in a hurry to complete the process, so it’s easy to get ahead of yourself by making distributions too soon. For example, if you make distributions before paying all liabilities, you could be held personally responsible.
- Forgetting to advertise the estate: It’s common to overlook this detail, but it’s your job to advertise the estate so that creditors understand what’s happening and how to take action.
- Neglecting to close out the estate: You put so much time into the process itself that you forget to close everything down at the end. For instance, you may need to go through the court system so a judge can approve all of the distributions you’ve made.
Even though these potential mistakes are scary, with the right approach you should be able to hedge them off before they become a problem.
It’s a big responsibility, as well as a great honor, to act as the executor of an estate . When the time comes to take action, learn more about the process, your responsibilities and your legal rights. The knowledge you gather will help you every step of the way.