Being named the executor of an estate is an honor, but it is also a massive, unpaid part-time job fraught with legal liability. If you distribute money to heirs before paying the deceased's taxes, the IRS can hold you personally liable. This checklist provides a roadmap.
Phase 1: The First 30 Days (Triage)
Your immediate focus is securing property, obtaining documents, and preventing fraud.
Immediate Actions
- ○Order 10-15 certified copies of the Death Certificate.
- ○Locate the original Will and any Trust documents.
- ○Secure the deceased's home, vehicles, and valuables (change locks if necessary).
- ○Notify the Social Security Administration to stop payments.
- ○Forward the deceased's mail to your address.
Phase 2: Months 2-6 (Probate and Inventory)
Now the legal and financial heavy lifting begins.
Legal and Financial Steps
- ○Hire an estate attorney and file the Will with the probate court.
- ○Obtain an Employer Identification Number (EIN) for the estate from the IRS.
- ○Open an Estate Bank Account to hold incoming funds and pay bills.
- ○Inventory all assets (bank accounts, real estate, investments) and obtain date-of-death valuations.
- ○Publish a 'Notice to Creditors' in the local newspaper to start the statutory clock on claims.
Phase 3: Months 6-12+ (Taxes and Distribution)
Do not distribute a single dollar to heirs until all debts and taxes are settled.
Warning
The Executor's Liability
If you pay the heirs and later discover the deceased owed $50,000 in back taxes, the IRS can force you to pay that $50,000 out of your own pocket.