Real Estate

How to Appoint a Will Executor

How to Appoint a Will Executor

Estate planning is a crucial component of living, particularly as we become older, despite how unpleasant it is to think about. Many people write a final will to specify how their properties and other possessions will be distributed when they die. When the time comes, though, one will invariably be unable to ensure that everyone follows your wishes, which is where the appointment of a will executor comes in.

The executor is in charge of implementing the deceased’s intentions and ensuring that any financial loose ends are wrapped up.

Who Is An Executor and How to Appoint One?

An executor is a person tasked with seeing that the deceased’s final will is implemented, usually a lawyer, accountant, or a family member. The executor is also in charge of repaying any obligations owed by the deceased at the time of his or her death.

To serve as the executor of a will, only a few credentials are usually needed and there should be no problem as long as the person is over the age of 18 and has no criminal records. Only in certain climes does an executor need to be a relative of the dead, to be allowed to live outside the state.

Executor’s Responsibilities – Taxes

It may seem like an executor’s job is to simply carry out the will’s directives. Notwithstanding, there may be a few elements in the procedure that the will may not specify.

One of an executor’s most significant responsibilities is to pay off any obligations and satisfy any debts such as credit card debt, personal loans, mortgage owed by the deceased. The executor will pay these bills with the deceased’s assets.

There are a few options available to you and your executor if you die with an unsettled mortgage loan. To begin with, you can delegate ownership of the house as well as payment duty to someone else.

When relatives inherit property, creditors are required by law to encourage them to accept the option of mortgage payments. And if you were a co-signer on your mortgage, payment duty may pass to you as well, regardless of whether the property does.

Furthermore, if you do not want to pass down your properties, your executor can sell them and use the revenues to pay off the balance of the loan. Also if the loan balance is greater than the sale price, your executor may arrange a short sale with the mortgage lender.

The executor will also be responsible for paying income tax for the deceased’s final year of life, for an amount estimated based on the value of the property and the state where the deceased lived, also leading to the determination of whether the executor must also pay property tax.

Related:  How to Decide Whether to Remodel or Move

Administration and Asset Transfer

The filing of the last will in the relevant probate court is another important stage in the executor’s duty. Filing is required by law and in most cases, you’ll have to file with the probate court in the county where the deceased resided at the time of death.

You’ll also decide whether the will needs to be probated at this time, which will be the case if the probate court is required to affirm the will’s validity. The need for probate varies by state, but big, complicated estates almost always require it.

The distribution of property from the deceased to the surviving dependents is the most common task that most people connect with an executor. Once she has paid all of the deceased’s debts and paid all taxes, the executors can proceed with this function. The state and kind of the assets you’re transferring will determine the degree of difficulty.

The Procedure for Appointing an Executor

There are two basic ways to assign a person to be the executor of a will. First, the person who creates the will, commonly regarded as the testator, can appoint an executor which would be specified expressly in the will of the testator. Following the testator’s death, the named executor may be required to file a petition with the proper probate court to be certified as executor.

If the testator fails to assign someone, the court will do so after the testator has died. Although it varies from state to state, the court usually follows a uniform approach when deciding who to assign, ranging from surviving wives, children, and parents. All of whom are usually at the top of the priority list and in these situations, the court refers to such an appointee as an administrator.

While anybody can act as the executor of a will, the position comes with a lot of responsibility. An executor will be responsible for the deceased’s taxes and debts, as well as carrying out the trust’s desires. If you’re named executor, you’ll be in charge of filing the will in probate court and overseeing the process, therefore, you must ask yourself once you are chosen as an executor if you are ready for the responsibility that comes with the territory.

The Author

Ajisebutu Doyinsola

Doyinsola Ajisebutu is a journalist and prolific writer who takes a special interest in Finance, Insurance, and the Tech world.