Estate Administration

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 more complexity, time, and emotional labor than expected. Understanding these challenges can help you better prepare, whether creating your estate plan or considering serving as an estate executor.

But first, a note about terminology. If someone creates a will, the term used for the person who handles the estate is “executor.” If someone creates a trust, the person who handles the estate is called a “trustee.” When someone becomes incapacitated, the person who handles financial matters holds power of attorney. The jobs are similar but not identical. In this article, we’ll focus on the role of an executor, who carries out the wishes of someone who died under the terms of their will. However, if you’d like more information about what a trustee does, book a call with me using the link below.

Let’s get to it.

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 and create a Life & Legacy Plan designed to keep your assets out of court, you’re leaving your executor with quite a burdensome responsibility.

Moreover, funeral homes and other service providers don’t wait for the court process. Most funeral homes require payment within days, ranging from $10,000 to $25,000 or more. While these costs can eventually be reimbursed from the estate (if funds are available), the executor must 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. These expenses must continue even though the estate’s assets are frozen. Again, these expenses 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 (did you do it on your own, have a lawyer well-versed in estate planning, or perhaps a lawyer who just dabbles in wills and trusts?), 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 must 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 extra time and headache. The process often requires numerous phone calls, visits to financial institutions, and hours of organizing documents. Many executors report handling these tasks for hundreds of hours over months or even years.

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 turned over to the government or go to the people you want in the way you want? If it’s the latter, you need to create a Life & Legacy Plan. Keep reading to find out how.

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 their own and others’ grief. This combination of emotional strain and family expectations can make the role particularly challenging and lead to family conflict. Sadly, that conflict can result in a protracted, expensive court battle and irretrievably broken relationships.

What You Can Do Now to Support Your Executor’s Success

When you create a Life & Legacy Plan with me, we will make your executor’s job much more manageable. For instance, I’ll help you create a comprehensive inventory of your assets, including account numbers and passwords, which can save countless hours of detective work. I’ll also help you update the inventory over time so it’s current when your executor needs it. I’ll also help you set aside funds to cover expenses so your executor doesn’t have to pay out of pocket. And we will consider whether to use a trust and name your executor as trustee of the trust so they don’t have to engage with the court at all.

We’ll also conduct a Life & Legacy Interview so family members know your wishes. This can go a long way towards preventing future conflicts. Most importantly, I will counsel you to choose the very best person for the job. Many people default to their oldest child or closest relative but haven’t considered whether they have the time, organizational skills, and emotional capacity to handle this complex role. Understanding exactly what’s involved means you can decide with full knowledge.

How I Help Make the Process Easier

I help you create a comprehensive Life & Legacy Plan that makes your executor’s job as straightforward as possible. After you’re gone, I will guide your executor through the probate process, handle complex legal paperwork, mediate family disputes, ensure compliance with all legal requirements, and provide objective advice during emotional decisions. That’s the value of a Life & Legacy Plan – and why it’s the best gift you can give your loved ones.

Take the first step toward protecting your family and supporting your future executor. Schedule a complimentary 15-minute consultation. Contact us today to get started.

This article is a service of August Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That’s why we offer a Life & Legacy Planning™ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

When someone names you as their executor, it might feel like an honor – a sign that they trust you to handle their final affairs. However, what many people don’t realize is that being an executor can turn into a demanding part-time (or full-time) job that lasts months or even years, often during a time when you’re also grieving the loss of a loved one. The responsibilities can be overwhelming, from tracking assets to dealing with creditors and managing family dynamics. Then, there are legal obligations and potential personal liability if things aren’t handled correctly. Making complex decisions while processing grief often proves more challenging than most people anticipate. Let’s explore what’s involved in administering someone’s estate and how proper planning can make this process easier for the people you love.

The Unexpected Time Commitment

Most people don’t realize that administering an estate isn’t just reading a will and distributing assets. The process typically begins with locating and gathering all estate planning documents, which can be challenging if they aren’t stored in an easily accessible place. The executor must notify numerous institutions of the death, often requiring multiple copies of death certificates and extensive documentation. This notification process alone can take weeks or even months, as each institution has its requirements and timeline for processing.

The time commitment becomes even more substantial when dealing with financial institutions. Each bank, investment firm, and insurance company has its procedures for handling a deceased person’s accounts. Many require original documents rather than copies, meaning executors spend countless hours making phone calls, writing letters, and visiting institutions in person. The process often involves repeated follow-ups and submission of additional documentation as requested by various institutions.

Property management, another time-consuming process, also falls to the executor. Whether it’s maintaining a house until it can be sold, managing investment accounts, or dealing with personal property, these responsibilities continue throughout the entire administration process. Real estate can be particularly demanding, requiring regular maintenance, payment of utilities and property taxes, and coordination with realtors if the property needs to be sold. Add to this the requirement to file court documents, appear at hearings, and prepare final tax returns, and it becomes clear why estate administration often takes far longer than expected.

This is incredibly challenging because most executors also work full-time jobs and manage their own families while trying to handle these responsibilities. The process can quickly become overwhelming without proper guidance, taking over evenings and weekends for months. The stress of juggling these responsibilities often leads to burnout and can affect personal and professional life.

The Financial and Emotional Costs

Beyond the time commitment, serving as an executor often comes with unexpected financial and emotional burdens. Many executors don’t realize they may need to pay for expenses out of pocket before being reimbursed by the estate. Court filing fees, property maintenance costs, and professional service fees can add up quickly, sometimes reaching thousands of dollars before any reimbursement is possible. In some cases, executors may need to hire attorneys, accountants, or other professionals to handle complex aspects of the estate, further increasing the financial burden.

The emotional toll of serving as executor often proves even more challenging than the financial aspects. Family dynamics frequently become strained during estate administration, as grief and stress can amplify existing tensions. Long-buried conflicts may resurface when it comes time to distribute personal property or interpret ambiguous instructions in estate documents. The executor often finds themselves in the difficult position of maintaining family harmony while fulfilling their legal obligations to the estate.

The pressure increases when executors discover complications like missing documents, incorrectly titled assets, or outdated beneficiary designations. These issues often require lengthy court proceedings, during which family members may grow increasingly impatient or suspicious. Without clear documentation and proper planning, even simple estates can become sources of lasting family conflict. Managing these interpersonal dynamics while handling technical legal requirements can be extraordinarily taxing.

Digital assets also present another layer of complexity that only some executors anticipate. Accessing and managing everything from email accounts to cryptocurrency can become nearly impossible in our increasingly online world without proper password documentation and legal authority. Many digital platforms have complex policies regarding account access after death, and navigating these policies without adequate preparation can lead to lost or inaccessible assets.

How a Life & Legacy Plan Makes a Difference

This is where working with our firm makes all the difference. My Life & Legacy Planning process is explicitly designed to prevent these common challenges and make estate administration as smooth as possible for your loved ones. Rather than simply creating documents, this comprehensive approach ensures that everything your executor or trust administrator needs will be organized and accessible when the time comes. The process includes detailed documentation of your wishes, clear instructions for asset management, and specific guidance for handling digital assets.

When you create a Life & Legacy Plan with me, it will include a complete inventory of regularly updated assets, ensuring everything is noticed and remembered. Your plan will also provide clear instructions about accessing physical and digital assets, eliminating the need for extensive searches or court intervention. You’ll also be supported in creating specific provisions for personal property distribution, helping prevent family conflicts before they arise. By addressing these details in advance, you significantly reduce the burden on your executor or trust administrator and minimize the potential for family disagreements.

Perhaps most importantly, working with me means your family won’t have to figure things out alone. Unlike traditional estate planning, which ends when you sign your documents, our relationship continues with your family. Your executor will have professional guidance through every step of the administration process, making their job significantly more accessible and reducing the likelihood of costly mistakes. This ongoing support helps ensure that your wishes are carried out efficiently and that your loved ones are protected during a difficult time.

Don’t leave your loved ones to navigate the complexities of estate administration alone. Book a call with us today to learn how we can help you create a plan that makes things easier for everyone involved. Contact us today to get started.

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