As the executor of someone’s estate, you will have a lot of responsibilities to manage over the next few months. You have to secure and inventory their property. You have to notify their creditors as well as the beneficiaries of their estate.
You will likely also have to sell some of the estate property, as testators often leave instructions to do that. Selling the deceased person’s home and arranging for an estate sale for all of their personal belongings may be two important obligations this may include.
You want to maximize profits if possible
You have a fiduciary duty to the beneficiaries of the estate. You should do your best to maximize the value of the assets in the estate by selling them for a fair market value.
Ensuring that you secure a fair price is particularly important when you sell larger assets like real estate or motor vehicles. Accepting a low sale price could lead to challenges by beneficiaries of the estate in probate court.
You need to file a tax return for the estate
If you generate more than $600 in revenue by selling estate assets, you will have additional tax responsibilities. Specifically, you will need to file an income tax return for the estate in addition to the income tax return for the deceased individual.
Tax oversights when handling an estate can lead to personal financial liability. Therefore, it’s crucial that you properly file taxes and pay any amount due.
Identifying and fulfilling your obligations as an executor will make estate administration simpler and less risky for you. Having legal and other professional guidance can help.