Executor of a Will

Essential Guidelines for Executors of Wills in California

Are you the appointed executor of a will in California? Starting off on the right foot is crucial. Here are ten key points you must understand as you assume this vital role.

1. Familiarize Yourself with Your Duties: Your foremost task is understanding your duties. You’ll be responsible for administering the estate, requiring a heightened duty of care and skill in handling the property. Your focus must be on the beneficiaries’ interests, not your own.

2. Grasp the Role of Bond: As the executor, you’ll be dealing with estate property meant for beneficiaries. To safeguard the estate, bonding is likely necessary. If issues arise, resulting in loss or devaluation of estate property, the bond will cover the value. However, remember that the bonding company can seek reimbursement from you, necessitating a clear understanding of your obligations.

3. Await Official Court Appointment: Your authority to execute the terms of the will only comes into effect after official court appointment. Filing a probate petition initiates the process. The court will issue a court order naming you executor and provide Letters Testamentary, granting you the power to gather assets and facilitate transfers.

4. Seek Full Powers from the Court: Although granted executor status, you must obtain court permission before taking action. Requesting “full powers” from the court can streamline the process, eliminating the need for multiple court orders and saving time and estate resources, especially for significant asset transfers like real estate.

5. Acknowledge Your Responsibility to Creditors: Apart from your duty to beneficiaries, you owe a responsibility to the deceased’s creditors. Probate serves as an orderly liquidation to ensure proper creditor payment. Notify all known creditors and provide them with the necessary forms for claims against the estate.

6. Inventory and Appraisal of Property: One of your initial tasks is to inventory all property in which the deceased had an interest. A probate appraiser appointed by the court will assess the property’s value. Act promptly, as California law allows only 120 days after your appointment to file the inventory and appraisal.

7. Obtain Court Approval for Beneficiary Transfers: Even with Letters Testamentary, you cannot transfer property to beneficiaries without express court approval. This rule applies regardless of the estate having a sole beneficiary or if a beneficiary faces hardship.

8. Refrain from Self-Payment Without Court Order: While entitled to compensation, you cannot pay yourself or any professionals you hire without a court order, even with full powers granted. Obtain necessary court orders for all payments.

9. File an Account and Final Report: Strive to complete estate administration within a year. If possible, file your final report and an accounting of asset liquidation, claims payment, and remaining transfers simultaneously. If tasks remain unfinished, file a progress report with the court, detailing your accomplishments and pending tasks.

10. Make Proper Distributions: Once your final report and accounting receive court approval, your duties aren’t over. Disburse assets to creditors and beneficiaries as per claims and will terms. Obtain receipts from all recipients and file an application for discharge once all obligations are met.

Understanding and adhering to these guidelines ensures responsible execution of your role as an executor of a will in California.