I Was Named Executor: How Do I Divide the Estate Assets?
If you just lost a loved one and found out that they named you as the executor in their will, you might be feeling both honored and overwhelmed. While it is a sign of trust, the role of executor comes with serious legal responsibilities. One of your biggest responsibilities as the executor of your loved one’s estate is to divide the estate assets among beneficiaries. But how do you divide your loved one’s estate? Below is what you need to know about your role as an executor and how asset division works in California.
Who Is an Executor?
Before going into how estate assets are divided in California, it is crucial first to understand who an executor is. This is the person a testator chooses to handle their estate after their passing. We have used the word “choose” because a testator does not officially appoint the executor. They simply nominate who they want to serve in this capacity. It is up to the probate court to formally appoint the executor after the testator’s death once the will has been filed and accepted for probate.
Once the court has officially appointed you as the executor, also called the personal representative, your duties may include;
- Gathering and managing the estate assets
- Inventorying and appraising the estate assets
- Notifying beneficiaries and creditors
- Paying debts and taxes
- Distributing assets
As the executor, you have a fiduciary duty to the estate’s beneficiaries. You are required to act in the best interests of the beneficiaries and the estate.
How Does Asset Division Work in California?
Firstly, you must note that in California, an executor can only begin handling the decedent’s estate after the probate court has given them legal authority. This authority is granted after a petition for probate has been filed in the county where the deceased lived. Once you receive Letters Testamentary, you can act as executor.
So, how does asset division work in California? The first step in dividing estate assets is taking control of and inventorying everything the decedent owned. Some common estate assets include real estate, vehicles, personal property, and business interests. After identifying and valuing estate assets, you will move to pay debts and obligations, such as funeral and burial expenses, taxes, and outstanding bills. California probate code section 11420 dictates the order in which the debts of a deceased individual are to be paid from the estate. You must repay debts as per the law. You can start the distribution phase once all debts and obligations are paid. You will distribute the assets as per the instructions in the will. If, for example, the will says “my son gets my house,” you will transfer the title of the house to the son.
However, sometimes, a will is vague or does not give detailed instructions for how assets should be divided. In such a case, you must interpret the will as reasonably as possible and may need court guidance. Court intervention may also be necessary if disputes arise among beneficiaries regarding the division of assets.
Contact the Probate Guy for Legal Help
If you have been named executor in a loved one’s will and need help navigating the probate process, contact the dedicated California probate attorney, Robert L. Cohen – The Probate Guy – today to schedule a telephonic consultation.
Southern California Probate Lawyer Serving Orange, Riverside, Anaheim, Whittier & Beyond.
Source:
leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB§ionNum=11420.
