{4 minutes to read} As a Trusts and Estates attorney, I frequently represent Executors of Estates. An Executor’s job can be very easy or very complicated — one may question whether it’s a blessing or a curse. However, with a little bit of guidance, diligence, and a can-do attitude, one can certainly make things a bit easier.
An Executor deals with a variety of information and record-keeping, relating to the assets that the deceased had as of the date of their death (whether it’s bank accounts, brokerage accounts, real property, tangible personal property, intellectual property, etc.). Additionally, all transactions made by the Executor while handling the Estate affairs will be essential when accounting to the beneficiaries when it comes time to distribute the Estate. I thought it would be helpful to provide a brief overview of these records as a guide for moving forward.
Sometimes, the Executor is very well versed in the financial affairs of the deceased. For example, perhaps the Executor had Power of Attorney or held a joint account with the deceased, so they are intimately familiar with all financial affairs. However, that is not always the case, and sometimes the Executor needs to do a bit of sleuthing to piece together what might be a hazy puzzle. Here is a bullet-pointed list of the things that an Executor should look for when they are going through the decedent’s belongings or mail:
•Most recent statements for bank and brokerage accounts.
•Life insurance policies, including information on whether they directly name beneficiaries or are payable to the Estate.
•Retirement accounts. Again, looking at whether the retirement accounts are payable to named beneficiaries or payable to the Estate.
•Income tax returns — the last three to five years are often helpful (if the deceased filed their income tax returns). If the Executor cannot locate these tax returns, they can contact the deceased’s tax preparer, who often has extensive records concerning taxes that will be helpful going forward.
•Any papers related to the debts that the deceased left behind, whether they are credit cards, mortgages, student loans, personal loans, etc.
•Receipts for all of the paid funeral expenses. Usually, someone will pay the funeral expenses before the Executor is appointed unless the deceased had prepaid it on their own (including ordering death certificates), which may be helpful because you or the Executor may need it for a Surrogate’s Court proceeding, and of course, to reimburse the person who laid out for these expenses.
•Record keeping from the date of death forward. The Executor is responsible for accounting for every penny that comes into their hands from the date of the deceased’s death through the date that they make distributions to the beneficiaries. That includes opening a New York-based Estate account.
•All statements from any account opened for the Estate, whether it be a brokerage or a regular bank account, are required. These statements are necessary to track all of the expenditures.
•Receipts for all expenses that the estate pays out, whether it’s attorney’s fees, accounting fees, or appraisers.
The costs of carrying the decedent’s home (property taxes, standard charges, maintenance, homeowners’ insurance, utilities, etc.) through the date of sale or distribution.•Copies of all tax returns, including income tax returns and estate tax returns.
A well-organized Executor will have everything at their fingertips when it comes time to account to the beneficiaries, deal with any creditors’ claims, and present everything in a neat and orderly fashion.
If the Executor is working with a lawyer or accountant, believe me, they will both thank you when they see the impeccable order in which your records are kept.
For more information on this topic, please contact me.