Understanding the Executor's Duties During Probate

When someone passes away, their estate often enters a process known as probate. The executor, a person named in the will, is responsible for carrying out the instructions outlined in that will.

The Law Office of Corey J. Rossi, PLLC is here to help clients in Tonawanda, Amherst, North Tonawanda, New York, and beyond, and traverse this process.

Your role during probate is extremely important. In New York, the probate process requires careful attention to detail and legal procedures. While some might view the task as straightforward, there are multiple responsibilities the executor must manage to finalize the estate’s affairs.

What An Executor Does

The executor’s primary role is to act as the administrator of the decedent’s estate. This responsibility involves numerous tasks, each aimed at settling the deceased’s affairs according to their wishes.

An executor’s duties begin once the will is admitted to probate and can extend for months or even years, depending on the size and intricacy of the estate.

It’s important for anyone named as an executor to recognize the seriousness of the role. In New York, an executor isn't only expected to follow the instructions in the will but also to adhere to state laws.

The guidance of a New York estate planning attorney can be invaluable in checking that all legal requirements are met, and the process is handled smoothly.

Applying for Probate

Before any action can be taken, the executor must file a petition with the Surrogate's Court to begin the probate process. The court will review the will to make sure that it’s valid and, if everything checks out, will issue letters testamentary, which grant the executor the legal authority to administer the estate.

The role of an experienced estate lawyer at this stage is critical, especially in New York, where probate procedures can be nuanced. Legal advice can help the executor make sure the application is done correctly and that no potential challenges to the will are overlooked. Without the proper documents and legal guidance, probate might be delayed or even contested.

Inventory and Valuation of Assets

Once the probate process begins, one of the first tasks an executor will face is identifying and taking inventory of the decedent’s assets. This includes everything from real property to financial accounts, personal property, and any other items of value.

The executor is responsible for making sure that each asset is properly valued. In New York, this is particularly important because the value of the estate will determine the taxes owed. If an asset’s value is improperly estimated, the executor might face legal challenges, including penalties for underreporting the value.

In most cases, it’s advisable for the executor to seek the assistance of professionals, such as appraisers or financial professionals, who can help accurately value the estate's assets.

Consulting with an estate planning attorney during this stage can also provide clarity on what assets need to be disclosed and the proper procedure for handling them.

Paying Debts and Taxes

Once the inventory of assets is completed, the executor must turn to the next critical duty: settling any debts and paying the required taxes. Debts might include outstanding bills, loans, or credit card balances, while taxes may include income tax, estate tax, or inheritance tax.

New York has its own estate tax system, which means the executor will need to make sure the estate’s tax filings comply with state laws. There can be penalties for failing to meet deadlines or underreporting tax liabilities. Given the stakes, consulting with an attorney to assist with tax filings is often a wise move.

The executor must also notify creditors of the decedent’s death and provide them with an opportunity to submit claims against the estate. If there are any disputes or disagreements over a debt, the executor will have to address them in a timely manner, which may involve legal proceedings. 

The executor is personally responsible for making sure these duties are carried out, so legal counsel can be essential during this phase. Here are some steps for paying debt and taxes:

• Review all outstanding debts, including personal loans, medical bills, and any other liabilities.

• File the necessary tax returns for the decedent, including final income tax returns and estate tax returns.

• Pay any taxes owed, whether state or federal, and make sure the estate remains in compliance with local tax laws.

• Communicate with creditors, allowing them to submit claims, and resolve disputes where necessary.

• Consult a probate administration attorney to help manage tax filings and see that everything is handled according to the law.

Distributing the Estate

After debts and taxes are settled, the executor is responsible for distributing the remaining assets according to the terms of the will. 

This is where the executor’s role can become particularly sensitive, as beneficiaries might have differing expectations or emotional responses to the distribution process. In New York, the executor is required to distribute assets in a way that reflects the will's instructions. 

This process can be challenging if the decedent’s wishes are unclear or if there are complications such as contentious family dynamics. An estate dispute lawyer can help traverse these sensitive matters, providing advice on the distribution and how to resolve conflicts if they arise.

It’s important to remember that the executor has a fiduciary duty to act in the best interests of the estate and its beneficiaries. If any beneficiary feels that the executor isn’t fulfilling their duties appropriately, they can file a formal complaint with the court, which could delay the distribution process.

Handling Disputes and Will Contests

During the probate process, it’s possible for disputes to arise. These might be in the form of will contests, challenges to the validity of the will, or disagreements among beneficiaries regarding how the estate should be distributed.

If the executor faces a challenge to the will or disagreements from beneficiaries, they must manage the situation appropriately. 

In many cases, the assistance of an experienced New York estate lawyer will be necessary to resolve the conflict. Legal representation can help make sure that the executor’s actions remain in compliance with the law and that disputes are settled as efficiently as possible.

New York courts often become involved in such matters, particularly when there’s a lack of clarity in the will or accusations of undue influence, fraud, or improper drafting. The executor should be prepared for the possibility of a protracted legal battle and remain focused on their responsibilities, regardless of any challenges.

Finalizing the Estate

Once the estate’s debts are paid, the assets are distributed, and any legal disputes are resolved, the executor’s job isn’t quite done. The final step is to provide an accounting of the estate's financial matters to the court and the beneficiaries. 

This includes submitting a detailed report of all actions taken during probate, including asset distribution, payments made, and any changes to the estate’s value. In New York, the executor must present this accounting to the Surrogate's Court for approval. 

The court will review the documentation to make sure everything has been handled correctly and in accordance with the law. If the court approves the final accounting, the executor can request that the estate be formally closed.

At this stage, it can be beneficial for the executor to have the guidance of an estate planning attorney, especially to see that all necessary filings are complete and properly submitted. Here’s a checklist for finalizing the estate:

• Submit an accounting of the estate’s financial activities to the Surrogate’s Court.

• Make sure all distributions have been made according to the will’s instructions.

• Make sure any final legal documents are filed appropriately.

• Close the estate with the court once all matters are settled.

The Importance of Legal Guidance

Throughout the probate process, the executor may face legal hurdles that require professional guidance. An estate planning attorney can play a key role in helping the executor fulfill their duties and avoid potential pitfalls. 

In New York, where probate can be particularly complicated, the knowledge of a seasoned attorney can make the difference between a smooth process and one mired in delays or disputes. An estate planning attorney can help with preparing and filing documents, managing tax issues, resolving conflicts, and complying with New York state law. 

Executors who attempt to handle these matters without proper legal counsel might make mistakes that could result in personal liability or complications that stretch out the probate process.

Contact a Reputable Estate Planning Attorney

The role of an executor during probate is one of immense responsibility. From applying for probate to distributing assets and settling debts, there are numerous tasks to manage.

If you need support during this process, our firm provides legal counsel to clients in Tonawanda, New York, as well as Amherst, Wheatfield, and throughout Erie County and Niagara County. Reach out to the Law Office of Corey J. Rossi, PLLC today to schedule a consultation