What is The Executor’s Role when Someone Dies?
Firstly, it is important to know what an executor actually is before we examine their role.
What is an Executor?
An executor administers your estate after you die. They are also known as your Personal Legal Representative. It is their job to manage all of your assets and liabilities and take care of all of your possessions. And they must liaise with your family to put all of your affairs to rest.
Essentially as Executor has the power to deal with all of your property, as you have when you are alive.
An executor is the person that you appoint in your Will to take care of everything after you die. The appointment of a trustworthy and reliable person to be your executor is one of the top reasons to write your Will. When you Write your Will, whether through our online Will Writing Process or face to face with one of our lawyers, you should choose the best person for the role as well as appoint an alternative, in case your first choice is not up for the task at the time of your death, for whatever reason. They do not have to be your executor, so you should check with them first before your appoint anyone.
1. They Organise the Funeral
The Executor’s first job is to arrange the funeral or cremation and decide on how the ashes are to be dealt with, if appropriate. This is of course done even before any of the legalities, such as obtaining probate are taken care of. This can be an emotionally charged and difficult role, so make sure that you appoint someone who is up to the task
2. Take control of and Protect the Assets
Even before probate is granted the executor must secure all the assets. This may entail bringing home the deceased’s car from the hospital, making sure the home is secure and any pets taken care of.
3. Obtain Probate
The nominated Executor must apply for the grant of probate, or if there is no Will, a Grant of Administration. It is better to have a Will so that you can appoint your choice of executor and prevent dispute amongst the family as to who will step into the Role. If there is no-one appointed then there will be difficulties in arranging your funeral and protecting your home, pets, and other assets until someone is appointed by the Court. Such a delay could cause a great deal of distress and a loss of your assets, never mind the well being of your pets being at risk.
A grant of Probate or Letters of Administration give your chosen executor the legal authority to deal with your estate and all your property.
The Executor will also pay off all the debts of the deceased and their estate, including tax. It should be noted that any tax liability, along with all other liabilities must be determined by the executor before distribution of the estate, and fully paid.
4. Defend the Estate
If there are any challenges to the estate or will, the executor must defend them so as to uphold the terms of the Will. This could be a claim where a person feels the Will maker has not provided for them sufficiently.
If the executor themselves wants to challenge your Will, they would need to withdraw as your executor due to this conflict.
5. Put into effect the terms of the Will
Your Will is an expression of your wishes of what should happen to your property after you die, what gifts you would like to leave to your loved ones, and how you would like the gifts that you give to be protected where some family members may have difficulty managing a substantial sum of money, such as a child or person under disability.
If you have worked hard during your lifetime, and love your family, you will want to make a note in your Will to gift the fruits of your hard work to those that you love, in such a way that it protects both your loved one and the gift so that they can derive the maximum benefit from this gift. That is why we have created the best online Will, so that this process is easy, inexpensive, and effective.
6. Manage your Trusts created in your Will
If you create a testamentary trust in your Will, your executor can take over the role of trustee, or you can appoint a separate trustee to hold some or all of your assets over a period of time with the aim of protecting the property and the person who is to receive the benefit of this gift.
The trustee deals with the estate after the executor administers it until the assets are ready to be distributed.
The trustee must file tax returns, after obtaining a separate tax file number for the estate or trust as relevant. The trustee may be required to pay tax on behalf of certain beneficiaries such as foreign residents. The executor and trustee are usually the same person and on a practical level the roles are merged.
Download our FREE Guide to Testamentary Trusts and why you Absolutely Need One, to protect your family and hard earned assets. Why let the tax man or someone else get their hands on your money?
7. Act as your Appointor
If you have a family trust in existence before you die, your executor shall become the appointor to that trust. That means that they can appoint a new trustee. This is an extremely powerful position as they can appoint someone who may be biased against some of your beneficiaries in a way that you may not intend.
You can therefore appoint a new Appointor in your Will, who can then nominate the trustee to your existing trusts.
8. The Executor’s year
This is the period in which an executor must wind up the estate and make a distribution in accordance with your Will. The executor cannot be compelled to distribute the assets from an Estate before one year has passed from the grant of Probate.
If you have any questions how our Online Will Writing platform can help you appoint the right Executor, please contact us.
Disclaimer:
The aforesaid is not legal advice and is only general in nature. Please obtain advice specific to your own circumstances, alternatively get in touch with the writer at http://hazelegal.com.au Please note that we do not endorse any of the services mentioned in this article, they merely serve as an example.