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The executor of an estate is an individual in charge of administering the estate of a deceased person, ensuring the last wishes of the deceased person are followed correctly.
The executor is either chosen by the individual who makes the will or by a court. Regardless of who placed the executor in the position of power, this individual must find the best solution to maximize the value of the deceased person’s home on the market when selling assets.
Since the executor is responsible for making sure all of the assets in a will are addressed and accounted for, an executor is often in charge of the deceased person’s estate.
One of the main responsibilities of this individual is to maximize the value of a home on the market by securing the home and other assets as quickly as possible when dealing with heirs and family members.
Let’s see things that you should know as an executor that can help you maximize the estate value and keep working relations as smooth as possible.
Things to Know as An Executor
You may be looking to become an executor. However, before you begin, there are some hazards that you should be aware of – and ways you can avoid them.
Disputes with Decedent’s Heirs
An executor’s main function is to secure the assets of the estate and then distribute the assets as the deceased person wished to do so. This can sometimes result in disputes amongst their heirs and arguments between the heirs and the executor.
You can avoid this common problem by quickly securing the home and other assets away from the heirs as soon as possible. Inform the heirs about the decedent’s wishes so they can understand your choices.
Arguments with Co-Executors
When there is a big family, you may find that numerous children are named as co-executors of the estate. If some of the people are not cooperative, out of state, not available, or argumentative, this can make it difficult to deal with the hands-on activities of the estate, like securing assets.
To fix this problem, try and narrow down the co-executor list to one or two people who are in the area and can devote enough time to get the job done.
Big Time Commitment
Being an executor takes many hours to handle the responsibilities of dealing with the decedent’s last wishes. To maximize your time and get things done as quickly as possible, work with an estate attorney to handle many of the property matters.
Personal Liability
As an executor, you need to pay taxes owed before giving each their inheritances. If you pay the heirs without paying taxes first, you could be liable for the taxes. During this step in the reprocess, explain to the heirs the rules of the IRS and the creditors that prohibit you from giving them their money prematurely.
Out-of-Pocket Expenses
Lastly, an executor will receive compensation for their job of distributing assets. Usually, the payment amount is determined by the size and value of the estate.
Unfortunately, sometimes the executor is not privy to any compensation based on the scope of the project. In this case, keep track of the out-of-pocket fees that could be reimbursed by the estate.
Conclusion
As you can see, being an executor is a time-consuming and detail-oriented job that requires patience and a deep understanding of the law.
Executors need to remain friendly with co-executors and heirs, devote many hours to the project, and pay out-of-pocket expenses to get the biggest return and maximize the value of the home on the market.