The Unexpected Challenges of Being an Estate Executor

When someone asks you to be the executor of their estate, it might seem like a straightforward responsibility – distribute assets according to their will and handle some paperwork. However, as many executors discover, the role involves far more complexity, time, and emotional labor than expected. Understanding these challenges now can help you better prepare, whether you’re creating your estate plan or considering serving as an estate executor.

The Unexpected Financial Burden

One of the most unexpected aspects of being an executor is the immediate financial responsibility. When a person dies, their assets are temporarily frozen until a court grants legal authority to an executor to step into the shoes of the decedent (the person who died) and gather all the assets for distribution to the heirs of the decedent, which could take weeks, months or even years. Unless you plan ahead and create a Trust that is designed to keep your assets out of court, you’re leaving your executor with a quite burdensome responsibility.

Moreover, funeral homes and other service providers don’t wait for the court process. Most funeral homes require payment within days, often ranging from $10,000 to $25,000 or more. While these costs can eventually be reimbursed from the estate (if there are funds available), the executor would need to pay them personally and wait months for reimbursement. This situation can create significant stress, especially if the executor doesn’t have readily available funds.

Beyond funeral expenses, executors often need to pay ongoing bills for the deceased’s home, such as property taxes, utility bills, insurance premiums, and maintenance costs, which must continue even though the estate’s assets are frozen. Again, these expenses typically must be paid out-of-pocket until the executor gains legal access to the deceased person’s accounts. Some executors report spending thousands of dollars of their own money during this interim period, creating financial strain at an already difficult time.

Finally, depending on who drafted your will. your executor could be required to come up with the money to pay a bond, which is like an insurance policy that can be thousands of dollars out of pocket, before they can be appointed by the court to serve.

Drowning in Documentation

The paperwork involved in serving as an executor can be overwhelming. Executors must track down and organize all financial accounts, including bank accounts, investment accounts, retirement funds, and insurance policies. They need to obtain multiple copies of death certificates, file court documents to initiate probate, submit final tax returns, close utility accounts, notify creditors, and process insurance claims. Sometimes, financial institutions ask for additional documentation, like a medallion signature – used to prove a person’s identity – which can take additional time and headache. Overall, the entire process often requires numerous phone calls, visits to financial institutions, and hours of organizing documents. Many executors report spending hundreds of hours over many months, or even years, handling these tasks.

Worse, some accounts may never be found. If you haven’t organized your finances so that your executor knows exactly what you have and where to find it, chances are the asset will be lost. When an asset is lost and never claimed, it must be turned over to the State’s Department of Unclaimed Property until (or if) someone finds it and can prove that the deceased was the rightful owner. Think about that for a minute. Would you want your hard-earned money to be turned over to the government or go to the people you want in the way you want?

Navigating the Family Dynamics

While the technical aspects of being an executor are challenging, the emotional and interpersonal dynamics can be even more difficult to navigate. Executors often find themselves in the uncomfortable position of enforcing the deceased’s wishes even when family members disagree. They must maintain impartiality while managing grief – both their own and others’ grief. This combination of emotional strain and family expectations can make the role particularly challenging and can lead to conflict in the family. Sadly, that conflict can result in a protracted, expensive court battle and irretrievably broken relationships.

Help Make the Process Easier

In addition to your will, you can create a Trust. This document will direct what happens to your property and assets so that your beneficiaries receive what you intend them to have. A Trust will also avoid probate court entirely and help the Trustee of your Trust step in and manage your assets immediately once you pass, minimizing the burden discussed above.

When using a Trust-based estate plan, you’ll still have a Will, but your Will should only need to serve as a backup and safety net to make sure that any assets that are accidentally left out of your Trust at your death are added back into your Trust. Also, your Executor and Trustee can be the same person if you so choose.

Let the Soto Law Group help design an estate plan that will protect your assets, minimize tax liabilities, and preserve your wishes as well as your legacy for generations to come. Give us a call today.

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