Every estate, whether through a will or a trust, needs an executor or estate administrator to handle the execution of a will or the disbursement of a trust. The job is more complicated than it may initially sound, as there are a lot of loose ends that must be tied up after someone’s passing.

The Basic Responsibilities of an Executor

Essentially, the executor’s job is to resolve any outstanding issues and divvy up estate assets after a person’s passing. This generally entails:

  • Safeguarding a person’s assets following their death but prior to dispersion to beneficiaries
  • Ensuring all debts and taxes are paid on behalf of the deceased
  • Transferring all remaining assets to the beneficiaries designated in estate planning documents

The Requirements

Although some people name a law firm, attorney or financial professional as the executor for their estate, that’s not a legal requirement. The executor can also be a family member or friend.

An executor does have a legal obligation to the deceased’s estate, what is commonly referred to as a fiduciary duty. This duty requires the executor to act honestly, impartially and diligently in their role as executor.

What the Job Entails

On a more detailed level, executors commonly have the following important duties to perform for the estate of their friend, family member or client:

Locating all assets – Ideally, assets should be easy to find and either be listed in a will or within a trust. Life isn’t always that clean and simple though, and it is the executor’s duty to locate all assets.

Distribute assets as prescribed by an estate plan – The same piece of property may be bequeathed to multiple beneficiaries in some scenarios. If you simply leave your home to your children, how exactly will that asset be divvied up? It may fall to the executor to sell real estate and other assets and then distribute the proceeds to the benefactors.

Pay debts and taxes – If an estate is going through probate, it is technically the executor’s responsibility to notify creditors of the debtor’s passing in addition to filing a final income tax return on the deceased’s behalf. If an estate is large enough to be subject to estate tax, it will be the executor’s duty to facilitate payment to the government.

Other Considerations

Depending on the complexity of the estate, there may be several ancillary duties involved within the previously stated duties. For example, an estate bank account may need to be established to house the proceeds of property liquidation. There may also be continuing upkeep and maintenance costs associated with properties in the deceased’s name, which will also fall to the executor to pay and maintain.

We accrue many things in a long life that the average person likely takes for granted. Credit cards must be closed, banks notified, government agencies informed, mail diverted, Medicare payments stopped and much more.

Choosing an Executor

Deciding who would be best for the role of executor for your estate can be difficult. Keep in mind some of the duties require filing court documents, potentially detailed financial calculations and a lot of box checking.

If you choose a family member or friend, make sure it’s someone who has the financial wherewithal to understand their role and at least a basic knowledge of legal and financial processes. You will preferably want to find someone in Michigan or the state in which you reside.

Also keep in mind that if you hire a third party, such as an attorney or financial professional, there will be a fee associated with that service. Most family members and friends tend to perform the role of executor for free.

Get Help with Your Estate Plan and Choosing an Executor

Whether you’re interested in setting up an estate plan or you have one but would like some assistance finding an executor, the Law Offices of David L. Carrier, P.C. can help. One of the services we commonly provide is assistance to family and friend executors. Even if the person you name as executor doesn’t have the time or knowledge to deal with the more intricate details of closing out your estate, we can help facilitate the process to make sure they get through it.

Contact us online or call us at (616) 361-8400 to schedule a consultation to learn more.

There’s a common misconception that living trusts are only for wealthy people with lots of assets. Many people also mistakenly think a will is all they need to ensure their end-of-life wishes are satisfactorily executed. Although a will is certainly better than having no plan at all, establishing a trust can minimize the hassle your family faces following your passing. Read more

Life insurance is essentially money paid after your death to the beneficiary you name on your policy. You pay a premium every month to maintain the policy.

There are many reasons to have life insurance:

  • Support your family in the event they lose your income stream
  • Pay off debts you may have incurred so your family isn’t stuck paying them in your absence
  • Pay for your children’s college
  • Cover funeral and other end-of-life expenses, including estate taxes

The Sooner You Enroll in Life Insurance, the More Affordable It Will Be

You may not have familial or financial obligations today, but you might in the future. Life insurance premiums are heavily based on health. A person who is older and has health issues is more likely to pass away in the near future, so the insurance company will charge more for the policy. Locking in a good rate when you’re young, even if you don’t have a lot of people relying on you, can pay dividends in the future.

Ensuring Your Family’s Financial Stability

The reason most people get life insurance is to safeguard their family from financial difficulties in the event they were to pass away unexpectedly. Supporting a spouse, raising a family, paying for college and making monthly mortgage payments are all things life insurance can cover. If something were to happen and you didn’t have any kind of life insurance, your family would suddenly have to figure out a way to make ends meet without your income, likely necessitating a significant downgrade in living standards.

End of Life Expenses Are More Expensive Than You May Think

The average funeral costs between $7,000 and $10,000. If you were to pass away suddenly, your family would have to try to come up with this money in the spur of the moment while they are in the process of grieving.

Estates exceeding $5.45 million are also subject to a federal estate tax. If your estate exceeds that amount, a life insurance policy may be able to offset or pay for some of those taxes.

Source: https://www.parting.com/blog/funeral-costs-how-much-does-an-average-funeral-cost/

Do You Have Debts?

Creditors generally don’t forget about someone’s debt once they die. Those responsibilities are often passed on to a spouse or children. The last thing most people want to do is put their family in a situation where they have to figure out how to maintain their current lifestyle and pay off debts without your income. Being able to wipe out credit card debt, car payments or a mortgage may make all the difference to your loved ones.

Pay for College

The College Board’s breakdown of average undergraduate college costs for the 2016 – 2017 school year:

  • $7,560 for two-year community college programs
  • $14,210 for in-state public college tuition
  • $26,100 for private college

For in-state and private college, multiply that number by four for the total cost of a four-year degree. Having a life insurance policy to cover those costs is an act that can potentially resonate through your family for generations.

Source: http://money.cnn.com/2017/05/01/pf/college/how-much-does-college-cost/index.html

Peace of Mind

No one wants to lose sleep worrying about what the future holds for their family. Knowing that if the worst were to happen to you or your spouse your loved ones would still be able to maintain the same quality of life and pursue their dreams can do wonders for your peace of mind.

If you want to learn more about life insurance or how to create an estate plan that incorporates life insurance or annuities, contact The Law Offices of David L. Carrier at (616) 361-8400 to schedule a consultation.






Establishing an estate plan is important for everyone, but it can be especially important for parents with young children. No one likes to contemplate the worst-case scenario, but it’s preferable to be prepared for all eventualities. Failing to name a conservator of your estate or guardian for your children in the event of you and your spouses’ death or incapacitation means a government bureaucrat will make the decision for you if the unthinkable were to occur. Read more

 

Estate Planning Checklist | Law Offices of David L. Carrier

Contact the Law Offices of David L. Carrier to get started on your estate planning checklist today! Call (616) 361-8400.






Thanks to all who helped us celebrate our newly relocated, vastly improved Holland office.

Drive up convenience, first floor access, same great cookies!

ADDRESS: 12330 James Street, Suite B-10 in Holland

Special Guests:

WOOD TV personality, Terri DeBoer
Ribbon cutting

Mayor Al McGeehan
His words, artifacts, and images bring the Civil War alive.

See the photos from our Ribbon Cutting Ceremony

If you have been researching living trusts you have probably seen the terms “revocable” and “irrevocable” trusts thrown around. Although there are a few similarities between the two, they are actually very different types of trusts used for different purposes.  Read more

Life Events That Necessitate a Change in Your Trust

If you want to learn more about Trusts or wish to schedule a Trust Review, call The Law Offices of David L. Carrier at 1-800-317-2812.

The Law Offices of David L. Carrier are hosting ‘A Night of Shopping’ open house to raise funds for The Walk to End Alzheimer’s. Join the community and shop to your hearts content. This event is free to attend.

10% of all purchases go directly to support the Alzheimer’s Association. Invite your friends, family, neighbors!

Find these and other outstanding direct selling retailers.

  • Premier Designs Inc.
  • Style Dots
  • Scentsy
  • Tupperware
  • LulaRoe
  • Thirty-One
  • Mary Kay
  • Arbonne
  • The Pampered Chef

WHEN: Tuesday, September 12, 2017 6:30pm – 8:30pm
WHERE: The Law Offices of David L. Carrier, 4965 East Beltline Ave NE, Grand Rapids

No registration required. All are welcome and refreshments will be served!

Questions? Call your host, Kris Cleary at 616-361-8400 (work) or 616-216-7590 (cell)

A Quick Overview of Trusts

Trusts are essentially estate planning vehicles that allow the trust maker, or “grantor,” to seamlessly transfer control of assets to beneficiaries should the grantor pass away or become otherwise incapacitated. Once a trust is created the grantor can transfer the ownership of their assets from themselves to the trust. Read more

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