BROOKLYN MEDIA GROUP MARCH 9 - MARCH 15, 2018 23
THE ELDER LAW MINUTE TM
What does it mean to be named as
an executor under someone’s will?
Generally, it can be seen as an honor
to be named as an executor but it is
important to know exactly what responsibilities
the title carries. The
following is a general job description
of an executor:
(1) Probating the Last Will and
Testament of the Deceased: There is
a common misconception that having
a will and a named executor means
that the court process is avoided. The
process of “probate” is specifically
for the purpose of proving that the
decedent’s Last Will and Testament
is valid. Along with this process
the court appoints the executor.
An executor named under a will is
only a nominated executor until the
court legally appoints the executor
and grants him/her power over the
estate. Therefore, the first task of the
named executor is to obtain the original
will and prove to the court that
it is a valid will. This is the probate
process which generally will require
the help of a lawyer.
(2) Marshalling Assets: Once the
court legally appoints the executor,
the executor will be provided with
a certificate from the court called
“Letters Testamentary.” With this
certificate, the executor is to collect
all the assets of the estate. This means
setting up an estate account and contacting
all the institutions in which
the decedent had assets in order to get
those assets into an estate account. It
is important to note that the executor
is NOT responsible to collect assets in
which a beneficiary or joint owner is
named. Those assets pass directly to
the named beneficiary or joint owner.
It is also important to note that the
executor is not required to “cash in”
assets such as stocks or real estate,
unless the will provides otherwise.
Assets such as stocks and real estate
may be desirable to keep; therefore,
the executor can execute proper
paperwork to transfer these assets
“in kind” to the beneficiaries.
(3) Reporting and Paying Taxes:
Unless the executor is an accountant,
it is strongly recommended that the
executor review the following three
types of taxes with an accountant to
make sure reporting requirements
are met and taxes are paid, if any:
a. Final Personal Income taxes:
This is the personal income tax of
the decedent which covers income
tax liability to the date of death. This
is also important to file because it
notifies the tax authorities that this
person is deceased; therefore the
return will be the final return.
b. Estate taxes (also known as death
taxes): This is a tax on the entire
estate. For most estates, estate tax returns
are not necessary because the
estate tax exemptions for federal and
New York State are high. Currently,
the federal estate tax exemption is
$11,200,000 and the New York State
exemption is $5,250,000.
c. Estate income taxes: This is a tax
on income earned from the decedent’s
date of death to the date when
the estate is finalized.
(4) Paying Expenses and Debts:
The executor is responsible for
paying administration expenses
and debts of the estate. The executor
should verify that the debts are valid.
(5) Distributing the Estate: An
executor can settle an estate formally
by court intervention or, more often,
informally between the parties. In
the informal process, the executor
provides an accounting to the beneficiaries
and obtains a release from
each of them before distributing
the estate assets. It is imperative
that the executor carefully read the
instructions of the will as to how the
estate is intended to be distributed.
It is also important for the executor
to keep detailed records and to
have open communication with the
beneficiaries.
The above is a very general job description
of the executor. Each estate
is different; therefore, it is important
for a named executor to review the
estate with an attorney to ensure
that he/she is carrying out his/her
responsibilities appropriately.
Ronald A. Fatoullah, Esq. is the
principal of Ronald Fatoullah & Associates,
a law firm that concentrates
in elder law, estate planning, Medicaid
planning, guardianships, estate
administration, trusts, wills, and
real estate. Yan Lian Kuang-Maoga is
an elder law attorney with the firm.
The law firm can be reached at 718-
261-1700, 516-466-4422, or toll free at
1-877-ELDER-LAW or 1-877-ESTATES.
Mr. Fatoullah is also a partner with
Advice Period, a wealth management
firm, and he can be reached at
424-256-7273.
BY RONALD A. FATOULLAH, ESQ. & YAN LIAN KUANG-MAOGA, ESQ.
THE IMPORTANT JOB OF AN EXECUTOR
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