An Executor’s Guide: What to Do When a Loved One Passes

Losing a loved one is one of life's most challenging experiences. Amid the grief, the person named as the executor of the estate is also faced with a list of administrative and legal duties that can feel overwhelming. Having served as an executor on three separate occasions for my own family, I’ve seen firsthand how confusing the process can be.

The goal isn't to be an expert overnight but to have a clear roadmap. To help, I’ve put together a practical, chronological guide to assist you in navigating your responsibilities during this difficult time.

The First Week: Immediate Responsibilities

In the initial days, the focus is on securing the estate and handling the most time-sensitive tasks. It’s easy to feel lost, so concentrate on these foundational steps.

  • Locate Key Documents: The first order of business is to find the original will and any trust documents. Copies are helpful, but the original is legally required for probate.

  • Obtain Death Certificates: You will need multiple official copies of the death certificate to handle various accounts and claims. A good starting point is to request 8-10 copies from the funeral home.

  • Secure the Assets: Protect the deceased’s property. This includes securing the home, locating keys to vehicles, and gathering any known valuables and important papers.

  • Start a Detailed Log: This is one of the most critical steps. Get a notebook and begin a tracking log of every phone call, email, and expense. Note the date, the person you spoke with, and the outcome of the conversation. This detailed record will be invaluable.

The First Month: Establishing Legal Authority

Once the immediate tasks are handled, the next phase involves legally establishing your role and organizing the estate’s finances.

  • File the Will with the Probate Court: In most cases, the will must be filed with the local surrogate or probate court. This process legally validates the will and officially appoints you as the executor.

  • Obtain Letters Testamentary: Once the will is probated, the court will issue "Letters Testamentary." This document gives you the legal authority to act on behalf of the estate. Financial institutions will require it before they will speak with you.

  • Apply for an Estate EIN: You will need to get an Employer Identification Number (EIN) for the estate from the IRS. This number acts as the estate's Social Security number for tax purposes.

  • Open an Estate Bank Account: With the EIN and Letters Testamentary, open a dedicated checking account in the name of the estate. All of the deceased's cash assets should be consolidated here, and all expenses should be paid from this account.

  • Notify Key Institutions: Begin notifying banks, investment firms, pension providers, Social Security, and Medicare of the passing. It’s also wise to have the deceased's mail forwarded to your address to ensure you don’t miss any important bills or statements.

The Following Months: Inventory, Taxes, and Distribution

With the legal framework in place, your focus shifts to the detailed work of managing, settling, and distributing the estate.

  • Create an Inventory and Get Appraisals: Compile a complete list of all assets—real estate, vehicles, financial accounts, collectibles, etc. For non-cash assets like property or valuables, you will need to get professional appraisals to determine their value for the estate.

  • Handle Debts and Taxes: You must notify known creditors of the passing. Use the estate account to pay any valid debts. It’s also your responsibility to file the deceased's final personal income tax return (Form 1040) and an estate income tax return (Form 1041), if necessary.

  • Communicate with Beneficiaries: Keep all beneficiaries informed throughout the process. Provide them with a copy of the asset inventory and regular updates on your progress. Clear communication can prevent misunderstandings down the road.

  • Distribute Assets: Once all debts and taxes have been paid, you can begin distributing the remaining assets to the beneficiaries according to the will's instructions. Remember, beneficiary designations on accounts like IRAs and life insurance policies override what is written in a will.

  • Close the Estate: After all assets are distributed, you’ll need to provide a final accounting to the beneficiaries and petition the probate court to formally close the estate. Be sure to retain all records, including your logbook, for at least seven years.

Navigating the responsibilities of an executor is a significant undertaking, but it is manageable when broken down into steps. Think of it as a team sport; working with a financial advisor, an attorney, and a CPA can provide the professional guidance needed to ensure the process is handled correctly and efficiently.