Since estates vary greatly in size and complexity, and the work of the executor can be easy or difficult to accomplish, the responsibilities may well go beyond the 10 basic items on this list. But while an executor can refuse or resign from the position at any point in the process, sometimes only legal advice is required. Consultation with a lawyer is usually used to ensure that the executor is properly performing his or her duties. It is the trustee`s responsibility to take control of all assets that make up an estate or trust. Especially when a trustee takes office upon the death of the donor or testator, it is crucial to secure and value all assets as quickly as possible. On certain assets, such as Brokerage accounts are accessible immediately as soon as certain conditions are met. Typical requirements are that an executor obtains formal approval, sometimes called testamentary letters, from the court and produces a death certificate. Other assets, such as insurance, may need to be claimed by filing a claim. The common practice is to hire a professional appraiser to appraise the deceased`s tangible property, such as household furniture, automobiles, jewellery, works of art and collectibles. Depending on the type and value of the property, this may be a routine activity, but you may need the services of a specialized appraiser if, for example, the deceased owned rare or unusual items or was a serious collector.
Real estate, whether residential or commercial, and all business interests must also be valued. In addition to providing a valuation of assets that can be reported in a court-mandated inventory or in the state or federal estate tax statement, the valuation can help the trustee assess whether the deceased`s insurance coverage is sufficient for the assets. Adequate assurance should be maintained throughout the trustee`s tenure. The trustee must also value financial assets, including bank and securities accounts. Note that for federal estate tax returns for estates that do not owe federal estate tax, certain estimates are allowed. This could reduce the assessment costs incurred. When planning for income tax, it is important to note that the estate or trust and its beneficiaries may not fall into the same income tax brackets. Thus, the timing of certain distributions can save money for everyone involved.
Caution is also required because trusts and estates are subject to different rules, which can be very complex and can reach the highest tax rates at very low incomes. Some tax preparers and accountants specialize in preparing such fiduciary tax returns and can be very helpful. They are familiar with filing times, can determine if the estate or trust must pay quarterly estimated taxes, and can help you plan distributions or other measures to reduce tax costs. Some state laws set a time limit for executors to assess and pay legitimate debts. Our estate litigation lawyers focus on assisting executors, beneficiaries and heirs in the event of a testamentary competition. Our lawyers focus primarily on probate litigation based on unreasonable coercion, embezzlement, breach of fiduciary duty and other probate litigation. Did you know that there are usually more than 100 tasks that executors must complete to settle an estate? If a trustee does not have financial experience, they should seek professional advice when investing trust assets. In addition to investing for good investment results, the trustee must invest under the prudent investor rule of the respective state, which governs the trust or estate, and by carefully considering the terms of the will or trust, which may change the legal rules of the state otherwise applicable. An experienced investment advisor can help the trustee decide how to invest, what assets to sell to produce money for expenses, taxes or direct cash donations, and how to minimize income tax and capital gains. Simply maintaining the investments held by the deceased is not a defence if an heir claims that you did not invest wisely or that you contravened the Trust Investment Act.
In all cases, it is important to have a written statement of investment policy that indicates what investment objectives are being pursued. To help you out, we`ve compiled a list of the best online tools for executors.