The death of a loved one can open the door to a flood of so many different emotions, and grief can exhibit in various ways. You might find yourself impatient with or suspicious of the individual who has been appointed to manage your loved one’s estate through probate, even if you’ve never been a particularly impatient or suspicious person before. That individual, called the executor of the estate, might even be a family member with whom you normally have a close relationship. But now there are money, assets and debts on the line, and you find yourself wondering what exactly she’s doing with that money. Maybe you’re the primary beneficiary and it’s supposed to pass to you, but she’s whittling away at the balance. You can take comfort in knowing that there are some firm laws in place to monitor the activities of an executor. The term “fiduciary” infers a great deal of responsibility. A fiduciary is legally bound to act in good faith to preserve the rights and well being of others, in this case the decedent’s estate and beneficiaries. This means putting their interests ahead of her own. If she doesn’t do so and you can prove it, you have legal recourse. One of the executor’s first responsibilities after opening the estate with the probate court is to gather all the decedent’s assets, but this doesn’t mean transferring bank and investment accounts into her own name. It means moving the funds into an account or accounts in the estate’s name. Probate is a process carried out under the watchful eye and supervision of the court. After the executor has identified and gathered all assets, she must submit a list of everything the decedent owned, including cash accounts and their values as of the date of death. Beneficiaries are entitled to copies of this report. If you notice that something is not on the list and you think it should be, you have a right to bring this to the court’s attention. The executor will almost certainly have to spend at least some of the money in the estate’s banks accounts, and she might have to liquidate or sell some or all of the decedent’s property to raise more money if the final bills are more than what was left in cash. They are also responsible for meeting the costs associated with managing the estate through probate. Appraisers might be necessary to value estate property, and they’ll expect payment. She might feel that she needs a lawyer’s assistance with certain estate matters, and the lawyer will expect to be paid as well. You might also notice checks made out to the executor, but this doesn’t necessarily mean she’s stealing from the estate. She’s entitled to make a claim to the estate for reimbursement if she spends her own personal money on estate-related expenses for things like postage, copying or even travel costs. In some states, she can simply take the money if she keeps proper receipts, but she might need court approval first in others. Executors are also typically entitled to compensation for all their hard work. In reality, many family members who act as executors waive this fee, but others might not. Executors can’t simply decide how much they’re entitled to receive for their services. Payment may require court approval, even if the decedents will states how much the executor should be paid. Some states have laws in place to determine how much an executor should be paid. When you make a will you also need to name one or more people to be your executor. This is the person whose role it is to make sure that your wishes are carried out as you have set out after you die. It’s up to you who you choose but this is not a decision to be taken lightly. Here’s what you need to know about the role of the executor. An executor is legally responsible for carrying out instructions set out in a will after someone has died. It is not an easy job, practically or emotionally, and can take several months, if not longer. Specific duties may involve: Professional executors: a solicitor, bank or accountant will charge for their service. Look closely at the fees: it could be an hourly charge or a percentage of the estate, often between 1% and 5%. Think about whether you’re happy for a chunk of your money to be taken in this way, rather than going to your loved ones. Make sure you therefore understand how you will be charged and how much before you commit. On the other hand, if your financial affairs are complex having a professional executor will bring the benefit of independent, specialist knowledge. Family and friends; they will have to make the tough decisions demanded of the role, while also dealing with their grief. Many people refuse to take on the role for these reasons. However, loved ones will know you and how you would want your wishes to be carried out should disputes arise. Make sure that you discuss this with the family members you choose, and give their full names and addresses in the will, so they can be located easily. If an executor finds it too difficult to carry out their role, they can choose to appoint a solicitor to carry out the administration. If there really is no one else then, as a last resort, a government official called the public trustee will be your executor. This is most commonly employed when everything in a will is left to one person who can’t act as executor themselves, for example, a child or someone who has a disability which means they are unable to deal with financial affairs. What’s called letters of administration are granted by the probate registry to allow the deceased person’s estate to be divided up under intestacy rules if there is no will or no living executors. An executor may have to apply for probate, which gives them the legal right to deal with someone’s estate. It may not be necessary if the estate is quite small. If more than one person is named as an executor, you must all agree who makes the application for probate. To apply via post you’ll need to complete form PA1 and the relevant inheritance tax form or you can apply and pay online. When you receive a grant of probate, make several copies, as you will need them for asset holders. Inheritance tax must be paid before applying for the grant of probate. It is quite possible for someone to be named as an executor in a will who wasn’t told beforehand and doesn’t want to be held personally responsible for the job. There are also situations where someone accepts the role, but later changes their mind but doesn’t have the opportunity to discuss it with the person who appointed them. If this is the case you need to speak immediately after the death to the principal probate registry or to a legal professional for advice. You have a number of options: Free Initial Consultation with LawyerIt’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you!
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8833 S. Redwood Road, Suite C West Jordan, Utah 84088 United States Telephone: (801) 676-5506
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What Does An Executor Have To Disclose To Beneficiaries? Is Utah A Spousal Consent State? Ascent Law St. George Utah OfficeAscent Law Ogden Utah Officevia Michael Anderson https://www.ascentlawfirm.com/can-an-executor-withhold-money/
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