Being chosen as an executor of a will is both an honor and a serious obligation. It's extremely suggested that if you're asked, you know what you're getting into and how big of an obligation it is.
From being required to get a court bond in the form of an executor bond to carrying out your duties in a quick and professional manner, you'll be responsible for a lot. An executor of a will is legally responsible for taking care of the financial obligations of the deceased. This generally means taking care of finances, debts that need to be paid out of the deceased's estate, and then making sure that the rest gets distributed fairly and where it needs to go. Before accepting this responsibility, do your research and read below for a few of the duties you would have to perform.
Get a Copy of the Deceased's Will and File it in Probate Court
The first thing you would need to do is get a copy of the deceased's will from their lawyer and then file it with the probate court. You will be in charge of getting, reading, and understanding the will, as well as determining who inherits the property that has been left behind.
Notify Government Agencies, Banks, and Credit Card Companies of the Death
You will be responsible for notifying government agencies such as the social security office of the death of the deceased. You should also notify any banks they had money in or any credit card companies they were with that they have passed on.
Determine What Kind of Probate is Needed
There are probate assets and non-probate assets, so you need to find out which is which. Probate isn't necessary all of the time. If you're unsure, you should talk to the probate court to see what is and what isn't to be put in probate.
You May Be Required to Represent the Estate in Court
It's possible, but not always, that the executor of the will might have to appear in court to represent the estate. If that is the case, you will be informed ahead of time.
Set up a Bank Account that will be Used for Any Incoming Funds or to Pay Bills
If the deceased is owed any paychecks or other forms of money, then a bank account that you set up can hold that money until probate is completed. You also need to be on the lookout for bills such as mortgage payments, utility payments, and other bills that need to be paid. You pay them out of the bank account that you set up for that purpose.
Take Care of the Property Until It Can Be Sold or Distributed
Taking care of the property includes making sure the house and the property itself are taken care of properly, and in some cases deciding whether the property should be sold or not. You're also responsible for taking care of all personal property on the estate until probate is over and it can be distributed to the people in the will.
Distribute Assets
Once everything is out of probate, if it's required, you are to distribute assets according to the deceased's will. If there was no will left behind, then state intestacy laws will apply.
These are a few of the responsibilities and duties you take on when you accept the tasks of being the executor of a will. While it's an honor and shows great trust, it is also a huge responsibility and should be treated as such.
ally think they have to give up doing the things they enjoy. However, this is simply not the case. In fact, by adopting a frugal lifestyle you will have more money for these things. Being frugal is not the same as being cheap as some misinterpret, but rather it simply means that you are savvy and smart with your money. You look for ways to reduce the cost of everything to keep more of your hard-earned money where it belongs: in your pockets.
Benefits of a Household Budget
Every working American should have a household budget. It provides a way to track your expenses, reveal poor spending habits, and pay down debt. You see up close and personal what you owe out and to whom. A household budget also lets you set short-term and long-term goals. This allows you to save for a home, a new car, college, and your retirement.
Save for a Down payment
When buying large ticket items such as a home or a vehicle, the larger your down payment is, the lower the monthly payment will be. When planning to buy these types of items, let patience prevail. If you buy a home with less than the 20 percent requirement established by banks, you will have to pay several hundred more each month to carry PMI insurance until you pay down the loan to that amount.
Avoid Impulse Purchases
You may be out walking around at the mall and suddenly something catches your eye and you decide to buy it. The problem is that, unless you have the cash to do so, you’ll end up putting it on credit. This results in monthly payments with interest. If the cost is more than $500.00, you will end up paying two to three times the initial cost. Impulse purchases can sap your extra cash and cause a lifetime of excessive debt that prevents you from going on vacation.
You can live a comfortable lifestyle without earning hundreds of thousands each year. By creating a household budget and becoming smart with your money, you will achieve financial wealth and peace of mind.
