When a loved one passes away, someone must manage their estate through the probate process. In North Carolina, the person chosen for this responsibility is known as the executor. But what exactly does an executor do, and how do they fulfill their duties?
Responsibilities of an executor
The executor manages the estate and ensures the deceased’s wishes are carried out. They must first locate the will and submit it to the probate court. If no will exists, the court appoints an administrator, but if there is a will, the named executor takes charge. The executor then handles a series of tasks, including identifying and gathering the deceased’s assets, paying outstanding debts, and distributing the assets according to the will.
Managing debts and taxes
One of the executor’s primary tasks is to pay the debts of the deceased. This includes funeral expenses, outstanding bills, and any taxes owed. In North Carolina, the executor files an estate tax return if the estate exceeds the state’s exemption limit. The executor also notifies creditors of the probate process and ensures they settle all valid claims before distributing assets.
Distributing the estate
Once the debts and taxes are paid, the executor distributes the remaining assets. They do this according to the terms of the will or, if there is no will, according to North Carolina’s laws of intestacy. Executors may need to sell property or manage investments during this time. After making all distributions, the executor files a final accounting with the court to close the probate.
Executor’s fiduciary duty
The executor has a fiduciary duty to act in the best interest of the beneficiaries. This means the executor must act fairly and transparently, avoiding any conflicts of interest. Mismanaging the estate can lead to legal consequences.
Being an executor can be time-consuming and complex, but it ensures that the deceased’s wishes are carried out and the estate is properly handled.