How Long Does an Agent Under a Power of Attorney Need to Keep Financial Documents?
As an agent under a power of attorney, how far back do I have to keep documentation for accounting purposes? I have been my m...Read more
Being the executor of an estate can be a time-consuming job, depending on the size and complexity of the estate. While a simple estate can take a few months and not require a huge time commitment, if there are problems, the job can drag on for years.
An executor is the person responsible for managing the administration of a deceased individual’s estate. The time and effort involved will vary with the size of the estate. However, even if you are the executor of a small estate, you will have important duties that must be performed correctly or you may be liable to the estate or the beneficiaries.
The first thing an executor should do is to consult with an attorney to learn the deadlines in the state where the decedent lived.
To start the probate process, the executor must file the will for probate. Some states have strict time limits on how long after a decedent dies the executor has to file the will with the court, while others have no time limits. In addition, there may be deadlines for the executor to prepare a list of all of the deceased’s assets and file this inventory with the court. It is important that they understand all that is required — and when.
How much actual time one must devote to this job can range widely. Settling an estate takes an average of 16 months, according the software company EstateExec’s estimates from 2018. The settlement process requires an average of roughly 570 hours of work on the part of the executor.
Typically, yes; compensation is generally the norm, with the amount paid specified either in the will or by the state’s probate court. According to EstateExec, the average compensation for executors was $18,000 in 2018. To see what how the fees break down state by state, visit EstateExec’s executor compensation calculator.
Note that you are allowed to opt against receiving compensation.
While there are certain deadlines set by the state to which you must adhere, other factors can make the estate administration go faster or slower. The following are the issues that can add or subtract time:
Debts. Potential creditors must be notified about the decedent’s death. Usually, the executor must inform all known creditors by letter and publish a notice in a local paper for unknown creditors.
Each state gives creditors a certain amount of time, which can range from a few months to a year, to file claims against the estate. The executor must wait for the deadline to pass and then settle all the debts before distributing assets to the beneficiaries of the estate.
Location. The location of the executor and the beneficiaries can affect the time it takes to settle the estate. If the executor does not live in the same state as the decedent and the beneficiaries, it can take more time to send documents back and forth.
Assets. The more complicated the assets, the longer it will take the executor to sort everything out. If the estate consists of just a house and bank account, things will go more quickly than if the estate consists of multiple bank accounts, stocks, brokerage accounts, valuables, and/or a family business.
Every family situation is unique, so there is no set time that an executor can expect to work. If you are named to serve in this role, check with an attorney in the decedent’s state to find out what to expect. You can find a qualified attorney near you here.