Owning Real Estate is the most challenging asset in a person's life. Eventually, property has to be sold. However, while still in a person's name or their estate, Real Estate has to be insured and maintained. Safety and liability is part of the package of home ownership. Being an Executor to an Estate may be the biggest headache and most expensive investment of time and money too!
If someone is asked to be an Executor, knowing what to do and not to do is extremely important. It's okay to say no. If a person of sound mind and body is having a Will prepared by an Attorney, they should ask as many questions as possible to be sure they appoint the right Executor to their Estate. Sometimes, family members may not be the right choice but the individual having the Will prepared feels torn about who to ask and has good intentions about keeping peace within the family. Naming the correct executor in a Will takes courage and serious thought. A reputable law firm can help.
They say blood is thicker than water but we all know that there are family screw-ups too who don't know how to management money. Sibling rivalry, drama, and meddlers, those people who handle matters carelessly or don't know how to manage their own affairs, let alone an estate are things to think about because purchasing a home and acquiring property is the most expensive investment in one's life time and authorizing the right person to handle your affairs after you are gone is probably even more important.
Responsibility
The Executor to an Estate is a fiduciary and can be sued.
Liability
As an executor, there is an order of priority for paying debts. The term used is referenced as statutory hierarchy for payment of debts. Obtaining legal counsel for legal guidance and knowing how to handle financial debt is extremely important. I am not an attorney and I cannot practice law. This post is for informational purposes only.
Paying bills to creditors is not the same as paying ordinary utilities, medical payments, etc. When it comes to property taxes and money owed to the government, it would prudent that the person who owns property to choose the right person who can and will know how to disburse proceeds of the estate and pay bills in the correct sequences of order. Out of sequence is a breach of fiduciary duty and can result in potential law suits.
A word to the wise - if you love your family and friends, choosing the right Executor is critical. The last thing you want is to be cursed after you pass on if the executor couldn't be responsibe, assumed the role, and got sued in the process.
©Patricia Feager 4/5/2016
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