Dealing with probate after the loss of a loved one is not something most people have much experience in. The complexities and sheer volume of steps to take when administering someone’s estate through the probate process can be overwhelming. Understanding an executor’s responsibilities can help make the big picture which is probate come into better focus.
There are three key areas which the executor of an estate is responsible for:
1. Coordinating and managing assets inventory. In order to get an accurate account of an estate’s inventory, an executor must take possession of all known property, including real estate, bank accounts, investments and personal property. During the process, the IRS needs to be notified of your fiduciary relationship, that you are the executor of the estate, so that you can also request a specific tax ID number in order to gain control of the assets. With the tax ID number, you will then be able to transfer accounts and investments into your name to complete a full account of the assets.
This also leads into the beginning of the real estate probate process with a notification to the County Tax Assessor being submitted along with any requests to change ownership or file a reassessment exclusion for certain family relationships, such as property passing from a parent to a child or grandparent to grandchildren. Once these initial steps are taken you are ready to begin your actual inventory, which is required to be completed within 4 months of your appointment as executor.
2. Paying of remaining taxes, debt or other monetary liabilities. If property is to be sold to manage the payment of monies due, a court hearing must be held first. This also applies to other payments to be covered by the estate, such as attorney fees, and several other situations. In addition to this, creditors need to be notified of a death and the plan, or proposed action you intend to take in order to settle the debt. Notice is required to be given not only to those owed funds, but also those beneficiaries of the estate whose inheritance may be impacted through the settling of outstanding affairs. These notices must be sent by mail or hand delivered by someone other than yourself, with proof of receipt being provided for your records.
3. Distribution of remaining estate monies and property to the named beneficiaries. After the estate inventory is processed, court hearings are completed, and outstanding liabilities paid for, the remainder of an estate is ready to be distributed amongst the beneficiaries. If distribution settlement includes the sale of real estate, the process may take longer. Working with a Realtor® who understands the complex process of California probate can make the entire process less stressful for you as the executor.
For more in-depth information on the responsibilities of an executor for an estate, the Superior Court of CA has an extensive webpage on Administering a Probate Estate. Whatever your circumstances, having an experienced Realtor® on your side will help make the process easier and less stressful for you. Please contact me, Stephen Theard, at (408) 472-0817 or stephen.theard@cbnorcal.com; I'm to help you with all your real estate needs.
*This post is not intended to provide legal advice. Before making legal decisions, consult an attorney.