How to Hire an Executor. For your loved one’s estate or your will.

E217 Executor Dies During Probate

E217 Executor Dies During Probate


What happens if the executor dies during probate? It depends on how far along you are in the probate process.

Probate Court Process Just Started

If no one has been officially appointed yet, you either restart the court process or amend your original papers.
Probate court process just started
For example, Matt’s dad died and his mom hired a lawyer to start probate to appoint her as executor. But before it was finalized, she passed away. The court allowed Matt to amend his mom’s papers to name him as executor instead. This saved Matt a couple of weeks in the process, rather than starting over from scratch.

What Does Administrator DBN Mean?

If the executor has already been appointed, then you must ask the court to appoint a new executor. Unfortunately, getting the administrator de bonis non (dbn) swapped in is about as time consuming and complex as getting original letters.
What does administrator dbn mean?
The Latin term de bonis non administratis means, “goods not yet administered.” Once appointed, the administrator dbn is substantially the same as any other executor.

When Estate Is Almost Complete

If the executor has already gathered the assets, completed tax returns, and only accounting is left, the court may allow the executor’s executor to close the estate.
When estate is almost complete
Let’s say that Matt’s mom did almost all of the work and right before her husband’s estate was done, she passed away. Matt is his mom’s executor. As his mom’s executor, he can come in and finish up the accounting as the executor of the executor. This is a niche situation that the court allows when there is almost nothing left to do for the estate. But most of the time, the court will demand that an administrator be appointed.

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E207 Hire a Professional Executor for your Insolvent Estate

E207 Hire a Professional Executor for Your Insolvent Estate


Going through probate is a grueling 1-to-2-year process. Would you want to go through all that if you don’t even get anything out of it?

If you think the estate may be insolvent, consider hiring a professional executor.

What’s an Insolvent Estate?

What’s an insolvent estate?

An insolvent estate is when the decedent’s debts are greater than the assets. For example, the mortgage, credit card debt, and medical bills are greater than the value of the house and bank accounts.

There are also situations where the estate is close to being insolvent and you don’t realize it. Examples of this are Medicare clawback and unseen taxes. If you received medical care paid for by the government, the government will want the money back when you die. This could leave your estate with a large bill. Additionally, the IRS will look over your taxes carefully to be sure they didn’t miss anything.

Who Must Probate the Estate?

Who must probate the estate?

Many family members and heirs ask: am I required to be executor? The answer is no! You can decline or not act at all. Although, some may feel like they are dishonoring their deceased loved one by leaving the estate as a mess.

If you think the decedent is close to having an insolvent estate, you have options.

One not-so-great option is to let the state take over. There’s a state office (sort of like the public defender, but called a public administrator) that can step in. But, the interest in the estate and the incentives might not be the same as a person who you hire to help.

Instead, Hire a Professional Executor for the Estate

Instead, hire a professional executor for the estate

A better option is hiring a professional executor. You won’t have to do the stressful work yourself and you don’t have to feel bad about abandoning your loved one’s estate to the public administrator.

Even if the estate is NOT insolvent, you now have a relationship with the hired executor. This helps to make sure you get your inheritance. If the estate IS insolvent, then you can relax knowing that a professional is there to wrap up the estate.

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E200 Why You Can Feel Safe Hiring an Executor

E200 Why You Can Feel Safe Hiring an Executor


Instead of appointing a family member to administer an estate, you can hire a professional executor. We often get asked if this is a safe and better route. In a recent case, Sean contacted us to discuss this option. In his particular situation, he is from a blended family. His mother died and she is survived by three adult kids and a stepfather who was separated from his mother for a long time before her death. In his case, he is facing some possible trust issues. For example, the family could tentatively agree to equal shares, but the stepfather could claim full spousal status and kids could try to disqualify the stepdad (there is certainly an argument that he is not a spouse).

If the stepfather acts as the executor, the children may not be completely trusting. Similarly, if the children are the executors, the stepfather may have trust issues. With this complex family dynamic, an independent professional executor makes tons of sense. However, some of the heirs in Sean’s case were a bit concerned about handing over the reins and control of the entire estate to a stranger. Being apprehensive is completely understandable, but here’s why it still makes the most sense.

What is an Estate Accounting?

What is an Estate Accounting?

A professional executor will file a full accounting to close the estate. An accounting is an official record of all books. Everyone gets to see line by line every single dollar and cent that came in and went out of the estate. We are talking full transparency and disclosure. Every heir will get to see everything that happened without any questions. It’s all there in black and white. Professional executors do this not only to put everyone’s mind at ease, but it is also for their protection. Professional executors can only be released from liability from what they disclosed, which is why we disclose everything.

To put it bluntly, no matter how hard they try and how meticulously organized they are, amateur executors such as family members, friends, and neighbors keep terrible estate records. For example, in order for the estate to draft and file an estate accounting, our office has to work with the executor to gather all documents and records. Most of the time, many things are missing and there is a bunch of back and forth to find the missing documents. It costs the estate money to gather these docs and find the items that were never obtained or missing.

Usually, non-professional executor accountings are mediocre at best. On the contrary, professional executors will provide the estate with a clean and solid accounting. It’s not that we are more organized, it’s that professional executors are keenly aware of the risks of liability. We know that if we mess up, the courts will come down on us. We also know the end game, so we know how to start gathering and keep track of finances immediately upon starting the case. We are working the whole time towards producing a line-by-line accounting of all of the funds.

What Does an Executor Bond Do?

What Does an Executor Bond Do?

An executor bond is an insurance against the executor for the benefit of the heirs. So, if the executor makes a mistake, loses something, or is an outright thief resulting in the heirs not receiving what they should have, then the bonding company will pay the claim. With a bond in place, the worse that will happen is that you, as an heir, get to file a claim against the bonding insurance company to get the money. It will then be the job of the insurance company to recover the funds from the executor, and not the heirs.

To get a bond you need exceptional credit, especially with large estates. Generally, they want 750+ credit scores. It is tough for some amateur executors to get a bond for this reason. As a professional executor, we have never had a problem getting a bond and have never had a claim against a bond. If not required, very often, we will get a bond anyway to put the heirs at ease. In some cases, the courts simply require them of the executor, regardless of experience.

When you work with a professional executor and request for them to be bonded, make sure you are ok with the payment of the premium. This is the amount that will be paid annually to the bonding company by the estate. The premium fluctuates depending on the size of the estate and the bond amount. We can certainly get a quote beforehand and you can decide if it’s worth the annual payment.

Are Co-Executors a Good Idea?

Are Co-Executors a Good Idea?

“We have too many cooks in the kitchen.”

In Sean’s case, one of the questions the family asked was if we can have one family member and one professional working as co-executors. They wanted to know if co-executors are a good idea. The short answer is no. It boils down to too many “cooks in the kitchen.” When you have too many people involved with what is really a one-person job, then it becomes more complicated.

You will need each executors’ original signatures on all documents and authorization for all decisions. So, all the benefits of hiring a pro as a centralized decision-maker with experience to move the estate along properly and quickly is being thrown out the window. There are situations where executors are required to do things in person, such as opening the estate bank account. Both executors would need to go the bank together, and this may be challenging to coordinate, especially if one executor lives out of town or out of the country.

It also complicates the financials. You will have two people keeping financial records differently, that you have to merge together at the end. Collecting and combining two executor’s documents will take substantially more time and the estate will bear the cost.

While we do not advocate this route, if it’s the only way the family will be on board with a professional, then we can explore it. For the right family, we are willing to do it. We recommend that you speak with the professional and research what goes into administrating an estate before deciding on the co-executorship route.

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E190 When Does the Executor Tell the Beneficiaries?

E190 When Does the Executor Tell the Beneficiaries?


When does the executor tell the beneficiaries? Once the court process starts, which is usually shortly after death.

We often get this question when our Solo Ager clients name me as executor in their will.

When does the executor notify beneficiaries?

No, the executor does not notify the beneficiaries upon you signing your will. This is a common concern. An executor only notifies the heirs after death.

When exactly? Usually during the court probate process. But sometimes informally before probate.

Example: if you best friend and beneficiary is working with me to coordinate funeral arrangements, it may naturally come up during conversation that she’s named in the will.

Otherwise, the executor notifies all beneficiaries by mailing them a formal court document.

mail boxes

What does an executor have to disclose to beneficiaries?

All beneficiaries in the will receive the same court form, which lists:

  • The names of all beneficiaries
  • A general description of what each beneficiary receives

For example: the form will not specify that Jane received your diamond ring, and John received $10,000. Instead, it will say something like “Jane received items of tangible personal property” and John “a cash bequest.”

Generally, the executor does not send beneficiaries a copy of the full will. However, he must send the will to any beneficiary who also happens to be a distributee (next-of-kin).

Note: if you have a trust-based estate plan, rather than a will, then the notification requirements are different. You can keep information as private as you like. 

Who else does the executor notify?

family-tree-blank

In New York probate court, the executor must send notice to your closest surviving family, even if you disinherited them in your will.

Your executor must serve a court document and a certified copy of the will on each surviving family. So any disinherited heir will definitely be aware they were cut out.

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E189 Can an Executor be Out-of-State?

E189 Can an Executor be Out-of-State?


No, it’s not a good idea to have an out-of-state executor. Although it’s technically legally allowed, in reality an out-of-state executor causes tons of problems.

Banking Problems

Opening the estate account

You probably think opening a bank account is a piece of cake. And you’d be right, if you were opening an account for yourself, personally.

bank kyc

But banking for an estate is a different animal. But an estate account has tougher “know your client” rules, and the executor often must meet with a banker in person, at a branch, to open an estate bank account.

Troubleshooting problems

When you have a problem with your personal bank account, these days you have limitless customer support options. Website, email, live chat, tweets, or call or walk in.

But with estates, you usually must walk into a branch and speak with a banker to get that missing statement or re-issue that 1099. And that can be a pain for an out-of-state executor.

Selling Real Estate

Clean out

Yes, cleaning out the home or apartment is part of the executor’s duties. For an out-of-state executor, this can mean several trips in and out of New York to supervise the clean out.

Closing

source: https-::www.c21redwood.rocks:blog:tag:highland-title

New York is one of the few states where most real estate closings are in-person, with all parties sitting around a table for a few hours.

Yes, it’s sometimes possible to close with an out-of-state executor by signing and FedEx-ing the documents. But if any problems popup (as they often do with estate sales), it’s better to close in-person, so the lawyers can troubleshoot any problems in realtime, and avoid an aborted closing.

Minor stuff (mail forward, etc.)

There are countless small executor tasks to get the home ready for sale. Forwarding the mail, small repairs, returning extra keys, conversations with the super, etc. All much easier to handle with a local, New York executor.

Travel restrictions

travel restrictions

Sometimes an executor simply cannot legally enter the US:

  • Unable to get a visa
  • Immigration problems
  • Quarantine or other travel restrictions

If any of these apply, the heirs may be better off hiring a New York professional executor, rather than a non-New York person.

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E185 How to Name a Bank as Your Executor

E185 How to Name a Bank as Your Executor


Want a professional executor, but prefer an institution such as a bank or trust company? Here’s what to expect.

The application process

Like all other bank interactions, you must complete lots of forms and paperwork. It’s a lot of documentation, it may feel like you’re applying to college all over again.

And just like applying for college, you may feel like you’re applying for acceptance. Banks do not accept all executor nominations, and they have internal committees to decide which estates they will serve.

Bank minimums

The lowest minimum I’ve seen is $1 million liquid assets, and it usually must be invest with the bank. But more usually the minimum will be in the range of $2-5 million, liquid and invested.

Trusts only

Anecdotally, we’re beginning to hear that banks prefer to accept trustee appointments, and not executorship.

Some financial institutions flat-out reject clients who ask them to serve as executor, even when that client has millions invested with them.

Apparently some banks have acknowledged that being an executor is tough work, and perhaps not worth it for them.

Customer (higher) fees

Most states have laws that set the executor’s compensation. But banks will usually ask you to sign a contract with it’s own fee schedule. Higher fees, of course.

Banks have many advantages (“immortality,” private client perks such as fine dining, tickets, etc.), just be aware of what it entails.

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E183 Did Her Estate Plan Work?

E183 Did Her Estate Plan Work? A Solo Ager Example


Let’s take a look at a real world example of whether a Solo Ager’s estate plan worked towards the end of her life.

Ms.H’s Plan: DIY Will + Professional Executor

Background

Ms. H is a solo ager (unmarried, no kids, over 60 years old) who’s been estranged from her closest relatives (siblings and nieces and nephews) for decades.

She made a do-it-yourself will leaving everything to charity. Thankfully, she hired a lawyer to supervise her will signing.

Ms. H named me her professional executor in her will, and over the past 10 years her wishes have remained largely the same.

Recently

Sadly, age has caught up with Ms. H, and she was recently hospitalized for lack of self-care. Her doctors agree they cannot discharge her to live alone anymore, so we’re making arrangements for Ms. H to move into assisted living.

take care of yourself

She’s understandably anxious about all this, and even contacted her long-estranged niece and asked her to visit.

What Went Right with Her Plan?

Ms. H avoided a few problems by naming me her professional executor.

First, she won’t have to deal with any “court-appointed strangers,” such as a guardian. Instead, she can turn to me, someone she’s chosen and has a relationship with.

Second, she felt comfortable reaching out to estranged family, without fear they’d try to sneak into her inheritance. Since Ms. H already has a will and an attorney-executor standing by, her niece has focused solely on reconnecting with Ms. H emotional, not financially.

And lastly, Ms. H’s doctors, hospitals, and social worker have all been grateful to have me as a main point of contact for her care.

What Went Wrong with Her Plan?

Her plan does have a couple of weaknesses.

Since an executor steps in after death, I don’t have authority to help Ms. H now. For example, I can’t help make financial arrangements for her to access a better assisted living. She much choose among the options thru Medicare.

Also, if unscrupulous and aggressive family comes out of the woodwork, I have fewer tools to fend them off. We’d have to battle in court, which could waste Ms. H’s time and money, and cause her stress.

Why a Trust Could Have Been Better

If Ms. H had made me trustee, I’d be better to avoid any court-appointed strangers for her. And more ability to upgrade her care, and deter unwanted family, without having to go to court.

Living trust and estate planning form on a desk.

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E182 3 Examples of How Co-Ops Are Worse (an Executor’s Perspective)

E182 3 Examples of How Co-Ops Are Worse (an Executor’s Perspective)


Most NYers know the deal with co-ops: they’s less expensive than condos, but they come with a lot of rules and headaches. Here are 3 real world examples:

  1. Last to unlock
  2. Quick to Sue
  3. Release of lien

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E181 3 Examples of a Professional Executor to the Rescue

E181 3 Examples of a Professional Executor to the Rescue


Today we’ll share a few recent examples of why folks were so happy and relieved to find me, and name me executor in their will

Today’s stories:

  1. Don’t want to burden the boyfriend
  2. Former co-worker as a last resort
  3. Relieving an old friend

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E178 Solo Agers and Hospice Care

E178 Solo Agers and Hospice Care


Talking Solo Agers and Hospice Care with Helen Bauer and Jerry Fenter from the Heart of Hospice podcast.

Helen shares her personal experience helping during a Solo Ager friend’s final weeks. And Jerry shares some Solo Ager statistics and what he learned from Solo Ager Facebook groups.

Links: http://www.theheartofhospice.com/

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