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Once the Orphan's Court of the
County in which the decedent resided has officially appointed you as the
Estate's Executor or Administrator, your authority to act as such is set
forth in a document called "Letters Testamentary" (for estates with a
Will) or "Letters of Administration" (for estates without a Will).
Your work as the estate's Executor or Administrator has now officially
begun.
Some
of your responsibilities will include:
1.
Collect all property owned by the decedent at the time of death.
2.
Contract the services of an appraiser(s) to perform the required
appraisals for real and personal property.
3.
Pay all valid claims from creditors in accordance with the terms of
the Will.
4.
File the inheritance tax return and all required income tax returns
within the time frame the law dictates and pay the taxes thereon.
5.
Distribute the net assets to the beneficiaries according to the
terms of the accounting or Family Settlement Agreement.
The
following are some questions that we are frequently asked:
1.
Am I required to accept the appointment as an Executor?
Keep in mind
that just because you have been appointed as an Executor does not mean you
have to accept. You may
renounce your appointment and the alternate Executor appointed in the
decedent's Will becomes the Executor.
If there is no Will, an Administrator will be appointed.
2.
As an executor or an administrator am I personally liable for the
debts of the decedent?
As long as
the executor or administrator properly administers the estate according to
the law, he or she will not be held personally liable for any debts owed
by the decedent.
3.
Am I entitled to compensation for acting as an
Executor/Administrator?
Yes, you are
entitled to reasonable compensation. The
amount of the compensation is determined by the amount of work you
performed as an Executor/Administrator.
Keep in mind that whatever compensation you receive from the Estate
will be subject to income tax because it is income you earned.
The amount of your fee is subject to review by the Court.
4.
How long will it take for the Estate to be completed?
Although
there is no definite answer to this question, the average estate
administration takes approximately one year.
Some estates may be concluded is less time and some estates may
take longer. In most cases,
the size of the estate and the type of assets in the estate dictate the
time frame. Inheritance taxes are due 9 months after the date of death.
6. Do I need the assistance of an attorney to administer this Estate?
There is no
legal requirement that you must contract the services of an attorney to
help you administer an Estate. However,
it is good common sense. Few people have the legal knowledge or experience
to properly administer an estate. Even
experienced Executors usually hire an attorney.
As an Executor/Administrator you may be held personally responsible
if you fail to properly handle the estate or pay taxes. It is generally in
your best interest and the best interest of the beneficiaries of the
Estate to hire an experienced lawyer to help you through the process.
At Marshall, Parker & Associates' we strive
to make your work as an Executor or Administrator as easy as possible.
We believe that our job is to assist and guide you through the
process of Estate Administration and ensure that the Estate is
administered and distributed pursuant to Pennsylvania Law.
Our Estate Administration Department
is staffed by attorneys and paralegals with many years of experience in
performing Estate Administration work.
We are a very "hands on" law firm and we will work to make your
experience as an Executor or Administrator as simple and stress-free as
possible.
This article was developed to
give you an overview of your responsibilities as an
Executor/Administrator, and is not intended to be relied upon as legal
advice. The duties of an
Executor/Administrator are not limited to the responsibilities set forth
in this article.
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