SPECIAL REPORT: Duties of an Executor

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1 Call tday: We help families navigate the legal maze and implement plans t secure their futures. SPECIAL REPORT: Duties f an Executr Hk Law Center Offices: 295 Bendix Rad, Suite 170, Virginia Beach, Virginia Tel: Harbur View Blvd., Suite 203, Sufflk, Virginia Fax: Hk Law Center

2 Prper administratin f a decedent s estate invlves a variety f steps. An executr is typically appinted in a Will t handle the administrative tasks f the estate. In the absence f a Will, knwn as an intestate estate, an administratr is appinted, hwever, regardless f title, the persnal representative f the estate is legally respnsible t ensure that all necessary steps are taken t cmply with the laws regarding creditrs, taxatin, and distributin f assets t beneficiaries. We recmmend that yu cnsult with an attrney regarding the administratin f an estate t avid any persnal liability. As executr r administratr, yu have the fllwing duties under the Cde f Virginia: Yu must take prmpt pssessin f all f the assets f the decedent. In case f bank accunts, the decedent s accunts shuld be clsed and all funds shuld be depsited int ne r mre separate accunts, in yur name as executr r administratr. These must be kept separate and apart frm yur wn funds. Yu will need t btain a new tax I.D. Number frm IRS fr the Estate. Yu may need t use a bank accunt that will return the actual riginal cancelled checks. Except fr minimal amunts needed t pay current bligatins and t avid checking accunt charges, yu must invest all funds in an interest-bearing accunt r in ther assets which prduce incme. Yu must inquire abut safe depsit bxes and accunts maintained by the decedent at all financial institutins with which yu have any reasn t believe the decedent did any business. Yu may sell the decedent s real estate nly if the decedent s Will granted yu the specific pwer t sell real estate r by a Curt Order. If the decedent left n Will, his r her real estate passed at death by peratin f law t the heirs, and they becme the nly parties wh may sell it. If yu d nt have sufficient cash r ther assets which can be cnverted t cash t pay all allwances and claims against the estate r if the estate is slvent but yu have questin relative t allwances and claims, yu shuld cnsult with an attrney regarding the statutry pririties f a surviving spuse, minr children and creditrs. Yu may have persnal liability t creditrs if these statutry requirements are nt fllwed exactly. Yu have the duty t file all Federal and Virginia incme tax returns due by the decedent including thse due fr the year f death. Yu may als be required t file gift tax returns fr the decedent. Hk Law Center Offices: 295 Bendix Rad, Suite 170, Virginia Beach, Virginia Tel: Harbur View Blvd., Suite 203, Sufflk, Virginia Fax: Hk Law Center

3 If the assets f the decedent were sufficient t require the filing f a Federal Estate Tax Return, yu have the duty t file n time that return and a Virginia Estate Tax Return. Yu shuld cnsult with an attrney n yur bligatin t file these returns. Yu have the bligatin f keeping a full recrd f all receipts and disbursements f the funds f the decedent and all the riginal vuchers evidencing payment f thse disbursements. Yu shuld preserve cpies f all bills paid and prmissry ntes paid ff, and btain riginal cancelled checks. Within fur (4) mnths after yur qualificatin, yu must file an Inventry f the assets f the estate with the Cmmissiner f Accunts. Nt later than sixteen (16) mnths after qualificatin, yu must file an Accunt f receipt and disbursements with the Cmmissiner f Accunts. If the first Accunt is nt a final Accunt, yu must file an additinal Accunt each twelve (12) mnths thereafter, until all assets are distributed and a final Accunt is filed. A fee will be charged by the Cmmissiner f Accunts and by the Clerk fr each Accunt. When yur first Accunt is settled, yu will receive the statement fr services. Befre making final distributin f the estate assets, yu shuld ask in advance fr qutatin f a final fee by the Cmmissiner s Office. The Clerk will assign a Cmmissiner f Accunts when yu qualify. Yu will file the inventry and any accuntings with this Cmmissiner f Accunts. There is a preferred frmat f Accunt, which cntains all f the fllwing: Whether a first, interim, annual, r a final Accunt; The perid cvered (dates); The exact name and title f the Fiduciary; The name f the estate; All receipts, describing the item in detail, with the amunt f each item theref and with a separate Principal and Incme Accunt fr trusts; All disbursements r expenditures in detail, supprted by prper vuchers and riginal cancelled checks and the amunt theref; Hk Law Center Offices: 295 Bendix Rad, Suite 170, Virginia Beach, Virginia Tel: Harbur View Blvd., Suite 203, Sufflk, Virginia Fax: Hk Law Center

4 Transactins separately stated fr sales and purchases f investment by the fiduciary; On first and interim Accunts, a summary f the assets and Balance n hand at the end f the accunting perid (there can f curse, be n balance n hand in a final Accunt); The Accunt must be signed by the fiduciary, but need nt be ntarized; The decedent left a Will, a cpy f the Will and all cdicils must accmpany the first Accunt tgether with any cpies f Orders entered by the Curt; If a United States Tax Return and Virginia Estate Tax Return are required t be filed, the apprpriate tax clearance letter and certificate f tax paid shuld be appended t the Accunt in which they are shwn paid; and Yu are required t give Ntice t beneficiaries accrding t law and file an Affidavit f Ntice in the Clerk s Office. If the executrs r administratrs f an estate are the same peple wh receive all its assets under the decedent s will r by law, a Statement under Oath may, in certain circumstances, be filed with the Cmmissiner f Accunts in lieu f a frmal Accunt. Fr mre infrmatin, please cntact Hk Law Center. Hk Law Center has been assisting fiduciaries, acting as fiduciaries, and managing estates and trusts fr mre than 25 years. ABOUT THIS HANDOUT This guide is prvided as a curtesy t help yu recgnize ptential estate planning issues. It is nt intended as a substitute fr legal advice. It is distributed with the understanding that if yu need legal advice, yu will seek the services f a cmpetent elder law attrney. While every precautin has been taken t make this explanatin accurate, we assume n respnsibility fr errrs r missins, r fr damages resulting frm the use f the infrmatin in this explanatin. Hk Law Center Offices: 295 Bendix Rad, Suite 170, Virginia Beach, Virginia Tel: Harbur View Blvd., Suite 203, Sufflk, Virginia Fax: Hk Law Center

5 Hk Law Center fcuses its practice n estate and tax planning, planning fr lng-term care and aging, retirement and investment advice, trust and estate administratin and prbate, guardianships fr thse unable t make sund decisins, and the unique situatins assciated with special needs. Learn mre abut the Hk Law Center at Hk Law Center Offices: 295 Bendix Rad, Suite 170, Virginia Beach, Virginia Tel: Harbur View Blvd., Suite 203, Sufflk, Virginia Fax: Hk Law Center