Q.I have been named as an Executor in a Will. Please explain what I am expected to do.

A.The fiduciary (executor or administrator) of an estate is obligated, so far as they are able, to collect the assets and complete the administration of the estate within nine (9) months from the date of their appointment.

Completing the administration involves assisting and working with the attorney for the estate to collect assets, pay creditors, make final distributions to beneficiaries, file accounts, prepare and file estate tax returns and generally settle the estate. Additional duties may involve continuing the decedent's business, management and rental of decedent's real estate, sale of real estate and the sale of personal property.

To efficiently accomplish the duties and obligations, it may be necessary to circulate letters or make contact with banks, insurance companies, brokerage houses, and friends and relatives of the decedent in able to locate probate assets. Further, it is essential that you check the validity of all claims made against the estate, particularly medical expenses and take particular care to maintain complete records of all receipts and disbursements.

A fiduciary's authorization to act is evidenced by the Letters of Authority granted to the fiduciary by the Probate Court. Prior to receipt of this document the fiduciary should be careful to maintain and protect assets without distribution or alteration.

Prior to appointment by the Court, the fiduciary may have to post a bond in an amount set by the Court, but not less than double the amount of personal property, unless this requirement is specifically waived in the Will.

Upon completion of the duties and obligations of the fiduciary the Ohio Revised Code provides the fiduciary to be compensated for his or her services. This "commission" is based upon a percentage of the amount of all personal property received and accounted for by the fiduciary and on the proceeds of real property sold under authority of the decedent's will. The fiduciary may waive the taking of compensation.

Current law also requires that an Estate Checking Account be set up to keep track of all assets, disbursements, and expenditures made to wind down the estate.

The two key dates to remember if you are called upon to be an Executor is that from the date of your appointment and the filing of the will valid claims must be filed within a set time period or they are not required to be honored. Also that the payment of Estate Taxes must be done within nine months or severe penalties will be incurred.

By Andrew R. Hudacko
Attorney at Law