Estate Executor

What You Need to Know as an Executor of an Estate

By David L. Hartley, Vice President and Regional Manager of Middleburg Trust Company

No one will dispute that one of the most vulnerable times for anyone is when a loved one has passed away. This time can be made ever more stressful if you've been named the executor of the estate. There are many legal functions and tasks that have to be performed, as well as some that involve liability to the executor if there are mistakes. Some people are aware of the obvious functions of the executor, such as to read the will, make funeral arrangements, meet with an attorney and make tentative financial arrangements during the estate-settlement period. There are, however, many additional duties that are critical to the process and may not be as widely known. They include:

• List and locate the estate's assets, including cash, personal and household items and stocks and bonds in order to establish a total value of the estate.
• Take custody and control of the assets and safeguard them by securing adequate insurance or placing items in a safe or vault.
• Collect money owed to the estate.
• File claims for pension and profit-sharing plan benefits, Social Security benefits and veterans' benefits.
• Notify creditors of the death and pay all valid debts.
• Collect any unpaid sums owed to the estate.
• Manage the estate's assets, such as overseeing an investment portfolio or collecting rents, among other things.
• Sell assets as directed by the will or as required by state law, to pay estate expenses or legacies.
• Distribute assets to beneficiaries.
• Keep accurate records of all estate transactions and submit a detailed accounting to the beneficiaries, the probate court or both.

There are also tax-related responsibilities that include filing a final personal income tax return, as well as the estate's federal income tax returns, state income and death tax returns and a federal estate tax return. Handling these steps can be a complex and time-consuming process and not everyone has the administrative, financial, investment, business and accounting knowledge necessary to complete them.

At Middleburg Trust Company, we follow a 27-step estate administration checklist and incorporate a team of professionals to settle an estate for which we are named executor. We can assist you by serving as the sole executor or co-executor, performing just the administrative tasks, or simply advising you on the process.

If you would like to schedule a time to discuss the various responsibilities of being named an executor or would like to learn more about how Middleburg Trust Company can assist you in this function, please call the Middleburg office at 540-687-4805.

Middleburg Trust Company and Middleburg Investment Advisors, Inc.
are wholly owned subsidiaries of Middleburg Financial Corporation