Executor for an Estate

Hi M.T.

You should google "Texas Probate Law" to find information, but in Texas, the executor of an estate is not personally responsible for the debts of the estate. You are simply responsible for executing the will, including distributing payments from the estate to creditors.

Good luck!

My friend is an executor for her moms estate and they have been battling it out for over 10 years. Her brothers want stuff that their mom left to someone else and the brothers are fighting her will, one of their wives is a high powered attorney.

My friend is on disability and only gets the minimum, about $600.00 a month and out of that money she is paying for a garage size storage each month to store her moms stuff while the battles go on.

If the person wanting you to be their executor sets it up correctly then it can't be such an issue as this. The will needs to be specifict.

In NY, the executor to the estate is in charge of the distribution of the items in the will and makes sure that the estate is assigned a Tax ID number (the lawyer will actually do the paperwork). Your responsibility is to essentially make sure that the checking account is open (need the Tax ID #) and that all bills are paid from that account before the money is distributed to those mentioned in the will. You are basically the CEO/CFO for the "account" until it is settled. Most estates take 6-9 months to settle with respect to the finances.

If there are items in the estate (usually personal items or small household items) that are not specifically left to a person or a group, the executor is responsible for either arranging the estate sale or donation and making sure that the $$ received from the sale is divided appropriately according to the will.

You are not personally responsible for the debts of the individual (hence the separate ID # and checking account), but you will be responsible for making sure that all of the debts are paid on time and that the will is dispensed per the document.

My mother is the executress to my grandfather's estate and this is pretty much what she did after his death. Depending on the complexity of the estate it can be a lot of time in the first few months following the death. My mother lives out-of-state and had all bills and mail forwarded to her in FL. She did travel here (NY) twice to sign paperwork, but that money came out of the estate account b/c it was equivalent to a "business trip".

Before you make the decision, I would ask the person to see the will or to at least describe to you the complexity of his/her allocations. Make sure that the attorney who drafted the will is available to you for consult and that you have an accurate listing of the "typical" bills they pay (which credit cards, electric, water, etc) so that you don't forget to pay something or forget to have something "closed" and "cancelled".

I was the executor of my dad's estate. The executor may have to pay things out of pocket but should be able to get reimbursed from the estate. Save all receipts that are paid out of pocket. Once the estate has it's bank account set up (as in, the decease's account should be closed and a new one in the name of "Estate of ----- -----" should be opened), the executor should be able to write checks out of the account to cover *necessary* expenses related to the processing of the estate (like, the cost of putting creditor death notices in newspaper, cost of probate court costs; However, there is a definite process that needs to be followed in regard to distributing the estate assets. If the deceased died with debt, creditors (especially if the deceased died wuth credit card debt) should make a claim with the probate court in regard to money owed.... Creditors are paid smallest to largest (once all the assets have been inventoried & accounted for, property & possessions liquidated/sold for cash either throw estate sale or auction). My recollection is that distribution of estate assets is: pay IRS taxes owed for time of tax year when deceased was alive, reimburse executor for money owed, pay Estate counsel legal & income tax prep bills & fees, pay any debt claims, then once all debts are settled, remaining assets can be divided to beneficiaries. But court has to approve where money is going before checks are given.

Now, if the executor happens to be an authorized signer on the deceased's bank account prior to death, that might change whether he/she is obligated to settle any outstanding bills or unpaid checks prior to closing the account. In any event, you should discuss this with the estate attorney.

It is an act of love for the deceased to handle the estate, because it's a lot of time and effort. Good luck!

The rules for an executor of an estate may differ from state to state so you need to find out the rules in the state in which the deceased person lived. That is where the will would be probated. Usually, the executor is not personally responsible for paying the debts of the estate, but he/she is responsible for paying the legitimate bills from the assets of the estate. Besides paying the bills of the estate, the executor is responsible for filing all the IRS forms, paying any taxes and distributing the proceeds in accordance with the will The executor may receive a fee from the estate for their services, they can also hire an attorney or a CPA to help with the dissolution of the estate. However if there is no money/assets in the estate, it may still be necessary to hire a professional to help and the executor might incur some expenses to handle these fiduciary responsibilities. Being an executor of a will can be a big job depending on the size of the estate, how well the decedent managed their personal and financial life and how they want their assets distributed. The other factor is the number of relatives and the likelihood that they would file protests against the distribution of assets. It is a big decision, kind of an honor because the person puts their final trust in you, but it can be a lot of work.

An executor is not responsible for paying the debts of an estate out of his/her own pocket; the executor will make sure the estate's debts are paid out of the estate's assets. Many times the executorship is shared between a relative of the deceased and an impartial, knowledgeable 3rd party - like a bank or a law firm. However, if the 3rd party is bought in, they will get a 'cut' of the fee the executor earns. My husband thought it was 2% of the estate. I'm not sure if it is considered a 'bill', which has to be paid before the assets are distributed. They need to do the taxes, deal with the IRS, decide if debts are legitimate or not....find heirs, etc (this is where it is nice if you have a bank or lawyer helping out). It is a lot of work so hopefully the estate is large enough to make it worth your while.

It is a lot of work and stress. Frankly if anyone disputes the will, you get the fun job of mediating it. You can charge for your time and expenses and I would. You have to file with the court, the IRS, and the people who are in the will. You would be in charge of finding and selling assets. Do you have time? Energy?

My husband was made executor of his father's estate, and yes he was responsible for debts of the estate. What I saw from watching my husband go through this, was it is a HUGE responsibility and can be quite stressful. His father wanted him to carry out his wishes, as he is the most responsible of his siblings. You don't say if this is something your considering doing or if this is for your own estate, but I will tell you what we learned from this experience. If the deceased does not have EVERYTHING, and I mean EVERYTHING accounted for, it will be quite a headache. My FIL that passed away accounted for alot of his estate, but left many things un-accounted for. Those items had to go through probate, and my husband had to pay out of his pocket to a lawyer to straighten things out. Many assets could not be divided until everything was settled. It took many long months and alot of money to the lawyer. My advice is be sure you want to take on this responsibility, and that you are emotionally as well as financially able to handle what you may endure. Also, make sure your loved one covers their bases & get references from friends or relatives for a good lawyer to handle things. Good luck to you, I know this can be quite a tough situation.