Probate and Executors
Probate is a court-supervised process to collect and distribute your assets according to directions in your will. In your will, you can name an executor, or administrator, to manage your estate through the probate process; one of the court’s first steps in probate is to officially appoint this executor, giving him authority over your estate’s affairs. After appointment, the executor must gather your assets, pay your debts and taxes and distribute the remaining assets to your beneficiaries. This process may take several months, so your executor also is charged with managing your property in the meantime.
Information to Beneficiaries
Once your executor is officially appointed, he must inform your beneficiaries of his appointment in accordance with your state’s rules. This gives your beneficiaries an opportunity to contest his appointment if they want another executor appointed. The time frame and process for performing these notifications and protests varies by state. Once your beneficiaries are informed, they may be required to respond and provide proof of identity showing that they have a legitimate claim to your assets.
Executors owe a fiduciary duty to your estate. This duty includes an obligation to your beneficiaries to preserve your assets until distribution. For example, if your home is part of your estate, your executor may need to keep paying utility bills. The executor must pay legitimate debts presented by your creditors, along with any taxes due at the time of your death; he may have to sell some of your assets to pay these debts. Since your executor must file an inventory of estate assets with the court, your beneficiaries can obtain information about what assets comprise the estate and how the executor manages them. Once creditors are paid, your executor can distribute your remaining assets to your beneficiaries according to the terms of your will.
Your beneficiaries are entitled to receive their inheritances from your estate in a timely manner, but the exact length of time depends on your state’s procedures and the complexity of your estate. For example, if your state requires that your estate remains open to accept creditor claims for four months, your beneficiaries cannot receive their inheritances until that minimum time has passed, though the process may take much longer. Similarly, a complex estate could take years to resolve. If your beneficiaries feel that the executor is not managing your estate as required by your state’s laws, they have the right to petition the court to replace him. Once your executor is removed, the court appoints another person to fill the position.