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| Guardian and Executor |
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Identifying a guardian and appointing an executor
An executor is someone named to carry out the terms of the will that include paying off all debts and finally distributing the remaining assets to the persons/entities desired by the deceased.
The law does not require an executor (also called a personal representative) to be a legal or financial expert, but it does require the highest degree of honesty, impartiality, and diligence. This is called a "fiduciary duty" -- the duty to act with scrupulous good faith and honesty on behalf of someone else.
An executor’s role entails the following:
• Find the deceased person's assets and manage them until they are distributed to inheritors. This may involve deciding whether to sell real estate or securities owned by the deceased person.
• Decide whether or not court proceedings are needed.
• Figure out who inherits property. If the deceased person left a will, the executor will read it to determine who gets what.
• Handle day-to-day details. This may include terminating leases and credit cards, and notifying banks and government agencies.
• Use estate funds to pay continuing expenses. The executor may need to pay, for example, utility bills, EMIs & payments, and insurance premiums.
• Pay taxes. A final income tax return must be filed, covering the period from the beginning of the tax year to the date of death.
• Supervise the distribution of the deceased person's property. The property will go to the people or organizations named in the will or those entitled to inherit under state law.
In his will, a person may also appoint a separate guardian to take care of his dependents or even manage their share of assets on their behalf. |
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