How to Handle Being the Executor of a Parent’s Estate

The loss of a loved one is a difficult experience for us all. The emotional consequences are profound, with few experiences more deeply affecting than the loss of a parent. Amid this turmoil is the obligation to administer the departed’s estate, which most frequently falls to one of the adult children. This article aims to address how to best prepare for the responsibility of acting as executor and the steps to take both before and after the passing of a parent.

Have the Conversation Before – Financial talks between family members can be challenging and a struggle to initiate. This is especially true among an aging parent and their adult children. It is important to do so, however, to avoid being lost when they are gone. Some areas to focus on are:

• Review the will and discuss any ambiguities and preferences for personal items, funeral/burial arrangements, etc.
• Determine the location of estate and other important documents.
• Create a list of financial assets and contact information for professional services (i.e. accountant, attorney, financial advisor).
• Discuss whether the right family members are informed of the estate plan.
• Ask if there are any assets titled in a revocable trust and whether you are also the successor trustee.

Ultimately, the more details that are shared now, the clearer the path becomes after they are gone.

Be Organized – You’ll be jumping into the middle of a lot of moving pieces, so it is best to take a moment to get the lay of the land before rushing to make any big decisions.

• Retrieve all important estate and financial documents (if any of the aforementioned lists were not created, now is the time to do so).
• Get death certificates (it will be surprising how frequently originals are needed, so get several originals).
• As part of the financial list, gather the last statements for all accounts.
• Consider having mail forwarded to you to avoid missed payments of expenses.

Ongoing Administration – Finalizing an estate takes months and sometimes years to complete.

• File the will with the Probate court.
• Open a bank account in the name of the estate for ongoing expenses and any outstanding incoming funds.
• Keep up with recurring expenses. It may be necessary to review old statements for any monthly/annual payments to avoid delinquencies.
• Notify creditors, Social Security, pensions, and life insurance to avoid excess payments or liens.
• File any taxes. There may be estate tax returns required, but also income taxes while the estate is being settled.
• Finally, distribute all remaining assets.

Don’t hesitate to rely on professionals – Hopefully, having to act as an executor is an extremely rare occurrence. Given the complexity and emotion that may be involved, leaning on the experience and expertise of the attorney, accountant and your JMG advisor can avoid costly mistakes and relieve some stress. Some areas in which experts can be of assistance are:

• Determining the timing for notifying interested parties.
• Explaining any difficult inheritance decisions made.
• Preparing paperwork for accounts/transfers/taxes.
• Determining the new cost basis amount for the estate assets.
• Developing a step-by-step plan for the estate process.

At JMG, we often take a leading role in coordinating all these moving parts and various professionals by acting as the conduit. We strive to alleviate as much stress as possible from the process during an already trying time.

As you can see, being an executor is a marathon, but it is also an honor to be entrusted with carrying out the final wishes of those we hold dearest. We invite you to share this article with others who may also find it insightful.

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