Being an estate executor
Someday someone may ask you to be the executor of their estate. It is an honor and requires an honest and diligent person, but it can be overwhelming and requires months of work.
This is what I learned about being an estate executor when a relative died, who I will refer to as Loved One.
If lucky, the Loved One has given you copies of the will, power of attorney, power of healthcare, and a living will. These documents along with other information will make it easier for Executor to navigate through the legal requirements. The schedule listing days is what I experienced and yours may be shorter or longer depending on how quickly the courts process probate and assets are sold or distributed.
Executor may have power of attorney also but that ends when Loved One dies. The power of healthcare and a living will help doctors and family decide when any life prolonging care should be ended.
Day 1 – Loved One has died. Make sure the hospital has any insurance and funeral home information. Prepaying for the funeral and burial is a big benefit for Executor. Call family and friends about Loved One’s death.
Day 2 – Call credit cards and obtain a balance due which will be paid by Loved One’s estate. Until Executor has Letter of Authority from Probate Court, the money will have to come out of Executor’s funds and will be reimbursed by the estate. Meet with the funeral director to make arrangements. If Loved One planned the funeral, everything but flowers and who speaks at the service or graveside should be completed. Changes may result in additional costs. The funeral director will want to know how many death certificates Executor wants. Overestimating is better than underestimating but many groups will take a copy.
Day 3 – Call Loved Ones bank. They will close any accounts and require a death certificate to open an estate account. POD or Paid on Death allows distribution of funds without probate. If possible, all assets should have PODs. That includes all checking, savings, certificate of deposits, money markets, IRAs, investments, the title to any cars and the title to the house. If everything is designated, probate is simplified and can be completed quickly. Probate court recommends a lawyer handle paperwork if the assets total more than $35,000 (in Ohio). This will slow everything down.
Day 4 – Call Loved Ones health insurance representative or number on card who can confirm how much medical costs will be. Some plans have a daily cap on in-hospital expenses.
Day 5 – Visit Loved Ones home. If empty, check on it daily or as often as possible. Begin the work of cleaning out clothing, food, and items that have no value and prepare to donate them.
Day 6 – Call Cemetery and make arrangements for burial. Executor may have to sign a paper. The court requires proof of payment for both the funeral and cemetery expenses.
Day 7 – Place obituary in newspaper with service and burial information. Cancel phone and streaming services. May have to return modems or equipment. Cancel subscriptions.
Day 9 – Received death certificates. Go online and obtain an EIN number for an estate account. The bank and others will need this. The estate of Loved One is considered a business and requires this number. The form can be filled in, approved, and printed in less than an hour.
Day 10 – Call pension provider if Loved One received a pension. The pension provider will want death certificate faxed. The bank can do this. Call any annuities and fax death certificates. They will send paperwork to beneficiaries listed on contracts. Once the paperwork is returned, they should receive a check directly. Check when car and home insurance expires. Home insurance will not renew for an empty house. Timing the sale of the house is important to avoid no coverage.
Day 13 – Funeral.
Day 14 – Contact lawyer and deliver original will; EIN; the value of the house; car’s blue book value; bank accounts; and list of beneficiaries with addresses and social security numbers. PODs will exclude much of this work. This Loved One had no PODs and had to go through probate, which is interested in making sure the funeral, any debts, and the courts are paid. Funds should not be released until the estate of Loved One has paid everything. Executor is entitled to a fee but it will be taxed. Executor cannot sell the house, car or valuables until appointed officially by the court, but family can have some items if the attorney gives permission. Clean and prepare house for sale. Find out what can be placed with trash or where to recycle items.
Day 21 – If medical bills arrive, make sure they have gone through insurance and if not, have them resubmit before paying anything. Contact insurance representative if unsure. Loved One had a $260 deductible for the ambulance and a maximum of $310 per day for the hospital. Even though Loved One’s hospital bill was over a million dollars, the estate only paid $260 for transportation plus $1550 for the five days in the hospital. Find out when property taxes are due. Taxes and the medical bill are usually the largest debts.
Day 27 – Meet with the lawyer to sign documents for Executor to receive Letter of Authority and begin probate of will. Creating forms and going to court takes time. The sooner legal paperwork is started, the sooner it will be completed. More paperwork may be required for Social Security, pensions, and annuities.
Day 48 – Executor receives Letter of Authority from lawyer. Can open estate checking account and transfer funds from Loved One’s personal account, which is then closed. Fax Letter of Authority to any group that requested one such as pension. Any repairs on the house can now begin if needed for sale and Executor can write checks from estate to reimburse for any previous personal funds spent on bills for the estate.
Day 58 – Contact realtor to sell house if repairs competed and household items sold, donated, or stored. Some furniture may remain to stage the house, but find someone to buy them before closing.
Day 60 – If car is not sold and Heir wants it, the court must grant a waiver to give an asset to the heir for free instead of selling it. Executor and Heir must sign paperwork and return to lawyer who will deliver it to Probate Court. The title will need to be filled out and signed by Executor and notarized and given to Heir along with court-signed waiver to put the car in the Heir’s name.
Day 70 – Bids on house reviewed and one accepted. Closing sale will take several weeks but Executor’s work is nearly done.
Day 76 – Appraisal on house, confirmed medical bills paid.
Day 86 – Transfer or sell car; remember to cancel car insurance
Day 92 – Pay any remaining bills on house
Day 93– Closing on house
Day 94 – Cancel home insurance and city utilities to cancel
Day 111 – Signed inventory list for attorney
Day 139 – Drop off funeral and burial information to prove paid for if not done earlier.
Day 140 – Review Account documents. Lists assets and distribution, lawyer’s fee; Executor’s fee. Sign and file with court.
Day 150 – Final Account approved by courts. Pay lawyer and distribute funds to beneficiaries. Pay executor fee and close estate checking account.
