do you have what it takes to obtain fiduciary insurance?
What an executor cannot practise
The executor of an estate has a host of responsibilities — from notifying heirs to managing assets. But an executor'southward authority isn't countless. There are limits on what an executor tin can and cannot practise.
If you've been named an executor, a couple basic rules of thumb are that y'all tin can't do annihilation that disregards the provisions in the volition, and you can't act confronting the interests of whatsoever of the beneficiaries.
Sounds pretty straightforward, correct?
Sometimes it is. But depending on the complication of the manor, figuring out the premises of your office as an executor could be challenging.
Before we get into the nitty gritty about what you cannot exercise equally an executor, let's make certain you're clear on what you can (and sometimes, must) do.
What an executor c an do
As the executor of an manor, you are responsible for managing the probate process , which means you'll be interacting with the probate court and making decisions about the treatment of probate assets.
You will:
- Open probate with the court
- Identify the deceased'south assets
- Provide notice to heirs and interested parties
- Manage the administration of the estate
- Pay the deceased'southward debt from the manor
- Distribute funds or property to the heirs
- Close the estate
Learn more nigh the duties of an executor .
Carrying out all these duties ways that yous can make a lot of the decisions virtually what happens with the estate since you are managing the deceased's property and assets until they are distributed to the heirs.
The executor has the concluding say on a lot of matters. But, equally we stated above, there are limits.
What an executor cannot exercise
Equally an executor, you have a fiduciary duty to the beneficiaries of the estate. That ways you lot must manage the manor as if it were your ain, taking care with the avails. So an executor can't do anything that intentionally harms the interests of the beneficiaries.
As an executor, you cannot:
- Practise anything to carry out the will before the testator (the creator of the will) passes away
Neither the executor nor the beneficiaries take whatever rights with regard to the manor before the testator passes away. Only because you're named in the volition doesn't mean y'all get to offset making financial decisions nearly how your Aunt May is treatment her assets.
- Sign an unsigned will on behalf of the deceased
If the deceased died without a signed will, the deceased died without a will. No one else can sign information technology on their behalf, and the estate will be managed in accordance with that state's laws of intestate succession .
- Take action to manage the estate prior to being appointed every bit executor by the court
To fill out the petition for probate, y'all may accept to practice some basic assay to determine what's in the estate. Only taking action beyond that — selling avails or making payments — is not allowed until the court has approved your petition and appointed you lot as the executor.
- Sell assets for less than fair market value without understanding of the beneficiaries
Your fiduciary duty requires yous to treat the estate's avails as if they were your ain and to take adept care that the beneficiaries receive the portion of the estate indicated in the will. Parting with assets for less than what they're worth — for instance, my offering them at a discount to friends — is in direct opposition to that duty.
- Change any provisions in a will
Just similar you can't sign the volition, you cannot change any provisions in the will. If you really like your cousin and y'all concur with him that he should've been named in the will, that's unfortunate. He can file a petition with the court contesting the will if he's an heir-at-law, but you have no potency to make changes to the will.
- Stop the beneficiaries or heirs from contesting the will
When beneficiaries or heirs contest the will, information technology's never fun for the executor. Notwithstanding, it'southward their correct to practise so, and you lot tin can't stop them.
What happens if y'all mismanage the estate?
Mismanaging an estate is non without consequences. If an heir or beneficiary believes you are not appropriately fulfilling your legal obligations, they have the right to file a petition with the probate courtroom to get a full accounting of the estate's avails or to have you lot removed equally the executor.
Serious violations could as well result in your being held in antipathy of court or beingness the subject of a civil lawsuit.
Of course, most individuals who serve as executors take their responsibilities seriously and handle the estate with care.
See : How to deal with family members when yous are executor of an manor
Knowing what your duties are and what an executor tin can and cannot do will start you off on good footing for carrying out your task successfully.
If you'd similar assist with the probate procedure, or have questions near getting started, schedule a gratuitous consultation with one of our good team members today .
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Source: https://ez-probate.com/learn/blog/what-an-executor-cannot-do/
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