Fiduciary duties involve the handling of finances. Your estate executor will have various tasks involving your assets and money.
The various duties of the executor will help ensure your assets are safe. He or she will ensure they are free and clear of encumberments and successfully disburse them to your heirs. But throughout the process, he or she has various financial things to do to ensure everything goes smoothly.
In some cases, your assets may need an appraisal. If this occurs, it is up to the executor to make sure to hire an appraiser and secure the estimates. This is especially important when dealing with real estate and businesses. You need to know the value of assets for taxation and other essential purposes.
The executor is also responsible for settling your debts. This could require selling off assets or using money from bank accounts. The estate cannot settle until all debts are handled. This includes any outstanding tax debts. The executor will usually need to file taxes that have not yet been filed.
The financial duties of an executor are very important. He or she could face personal responsibility for problems, such as unpaid taxes. The executor must make sure to carefully manage the estate assets and keep records of all dealings. Proper recordkeeping is essential for the executor to protect him or herself.
In the end, the executor will need to stay on top of the estate finances until it closes. This will occur when the estate is debt-free and all assets are in the possession of the heirs.