When you write a will, you typically name an executor of the estate who will be in charge of distributing the estate’s assets. This job often goes to a family member, such as a spouse or adult child, but in some cases, it may go to a friend. If a friend asks you to be the executor of a will, make sure you know what you’re agreeing to before you say yes.
Understand the Responsibilities of a Will Executor
The executor of the estate is also called the personal representative. During the probate process, the executor of an estate is responsible for administering the will in accordance with state law. This entails:
- Taking an inventory of the assets and determining the total value.
- Publishing a notice to creditors to inform them of the death and the deadline for making a claim.
- Paying all taxes and debts owed by the estate.
- Distributing the remaining assets to the beneficiaries of the will.
This can be a time-consuming process. Most people have assets that take many different forms, from bank accounts and stocks to furniture and jewelry. Adding everything up can mean digging through financial records and personal belongings. The executor may also need to manage an estate sale and review claims from various creditors.
The regular Oregon probate process takes at least four months, and it’s more likely to take half a year or longer. If there are problems, it can drag on for many months or even years. (Small estates may qualify for a streamlined probate process.)
Find Out Whether You’ll Be Compensated
As the executor of an estate, you are typically entitled to compensation under state law. In Oregon, the executor receives a percentage of the estate’s value:
- 7% of any amount not exceeding $1,000.
- 4% for any amount between $1,000 and $10,000.
- 3% for any amount between $10,000 and $50,000.
- 2% for any amount above $50,000.
- 1% of the property, other than life insurance, not subject to the jurisdiction of the court but reportable for estate tax purposes.
If the estate is small, this compensation may not amount to much, but the work involved in executing a small estate is usually relatively light. On the other hand, a large estate typically requires more work, but the compensation can be significant.
Determine the Risks Involved
As the executor of a will, you’re taking on a major legal responsibility. This means that there is some degree of risk. For example, you could be accused of breaching your duty, and you could even be sued. Assuming you intend to uphold your legal and ethical obligations, you may decide that the risks are negligible. However, it’s also important to consider family drama.
Understand why you’re being asked to serve as the executor. Is it because there’s no family? Or is it because the only living family members are estranged? If it’s the latter, the risk for disputes could be high. When you serve as the executor of a will, you’re putting yourself in the middle of family dynamics, so it’s smart to know what those dynamics are like.
Decide Whether You Want to Accept
You don’t have to say yes. If this is not something you feel comfortable doing, say so.
This may be difficult if your friend is writing their will and wants to nominate you, but it’s important to be clear and firm about your refusal. If your friend has no one else to ask, you may suggest alternatives, such as hiring an attorney to serve as the executor.
If your friend has already passed away and you find out that you were nominated to serve as the executor, you can still decline. To do this, you will need to sign an official form renouncing the role. The process is easier if you have not gotten involved in estate yet, so decide for certain whether you’re willing to serve as the executor before you do anything else.
Accepting the Role of Executor
If you’re up to the task and want to honor your friend’s wishes, you can accept the appointment as the executor of the estate. You will receive a Letter of Testamentary authorizing you to administer the estate. You may also be required to secure a probate bond. Then you can file the will with the probate court and begin the process of taking an inventory, notifying the creditors, paying debts and taxes and distributing the assets.
Keep in mind that this is a legal process with strict rules. A probate attorney can guide you through the process and help you avoid problems.
Are you serving as the executor of an estate in Oregon? Contact Skinner Law for help.