An executor plays a crucial role in estate administration and manages and distributes a deceased person’s assets according to their will. In New York, executors must navigate legal and financial responsibilities while honoring the decedent’s wishes. Here are five common challenges executors may face and how to handle them.
1. Understanding legal obligations
Executors must familiarize themselves with New York’s probate process and legal requirements. They must file the will with the Surrogate’s Court and obtain the legal authority to act. To manage this, executors may consider consulting with a legal professional to ensure compliance with all legal obligations.
2. Managing estate assets
An executor must inventory and appraise the estate’s assets, which can include real estate, investments, and personal property. To manage these assets effectively, executors should keep detailed records and consider hiring professionals for appraisals.
3. Settling debts and liabilities
Executors are responsible for paying the deceased’s outstanding debts and liabilities. This requires identifying creditors and ensuring they settle before distributing the remaining assets. Executors can manage this by prioritizing debts according to New York law and maintaining clear communication with creditors.
4. Resolving beneficiary disputes
Disputes among beneficiaries can arise, often leading to tension and delays. Executors should address these issues by maintaining open communication and transparency. If necessary, they may seek mediation to resolve conflicts.
5. Handling tax obligations
Executors must file the final tax returns for the deceased and the estate, including federal and New York state taxes. To manage tax obligations efficiently, executors should work with a tax professional to ensure accurate and timely filings.
Seeking legal support
Executors face a range of responsibilities that require careful management and decision-making. With the proper legal guidance, executors can better fulfill their duties and confidently navigate the complexities of estate administration.