When individuals create a will before they die, they name various loved ones in their will to receive their possessions. The people who receive possessions from the deceased individual are called beneficiaries. Along with these people, an executor is named in the will as well. The executor is the individual who is in charge of distributing the estate among the beneficiaries as it is outlined in the document.
Why is an executor different than a beneficiary?
An executor has a very important role in estate administration. A beneficiary is usually just a recipient of part of the deceased individual’s estate. However, an executor has many tasks to accomplish. Not only do they oversee the distribution process of the estate, they have to make sure all debts are paid off before the estate administration begins. They must make sure that the proper beneficiaries are given the correct property. The executor should work hard to meet all the wishes that the deceased left written.
As an executor, they must also preserve any assets, file tax returns and pay taxes that are due. With this role, they may have to meet with various attorneys, accountants and other financial experts. This role should not be taken lightly. If an executor is not carrying out the wishes in the will or is taking advantage of their position, it is possible for them to be taken out of the role.
Beneficiaries do not have to carry out duties as the executor does. Instead, beneficiaries are called upon to gather together and receive the estate that was meant for them.
Do executors get paid for their time?
The state of California has laws in place that state executors of a will are compensated for their work. During their time administering for an estate, they can be paid. There is a formula for compensation based on the probate code. The value of the estate and the percentage provided to the executor decreases as the value of the estate increases. These beneficiaries do not face any inheritance tax due to California laws which ban this. However, there may be tax obligations that can impact a trust or estate.
Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Office of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most. Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.
