My uncle recently asked me to be the executor of his will when he dies. I feel honored that he asked me, but I am not exactly sure what the role entails. What can you tell me about it?

Being named the executor of a will is an honor that reflects your uncle’s trust in you. However, it can also be a significant responsibility, especially if his estate or family situation is complex. Here is a look at what the role involves to help you determine if it is something you are prepared to take on.

Executor Duties

As executor, you will be responsible for settling your uncle’s affairs after his death. Depending on the estate, your duties may include:

• Filing paperwork with the probate court to validate the will and officially open the estate.
• Locating and taking inventory of all assets.
• Paying outstanding bills, funeral expenses and any taxes owed using estate funds.
• Notifying banks, government agencies (including Social Security), credit card companies and the post office of his death.
• Preparing and filing his final income tax return.
• Distributing remaining assets to the beneficiaries named in the will.

Keep in mind that an executor’s responsibilities and deadlines vary by state. Numerous websites provide probate guides or checklists that detail the laws of the state in which your uncle lives.

Get Organized

If you agree to serve, one of the best things you can do now is help your uncle get organized. Make sure his will is up to date and find out where important documents are stored, such as deeds, financial account statements, insurance policies, passwords and contact information for advisors. Having quick access to these items will save you time and stress later.

If the estate is complex, you do not have to handle everything alone. An estate attorney or tax professional can guide you through the process. Fees will vary and are typically paid by the estate. To find qualified help, you can search directories through the National Association of Estate Planners & Councils (naepc.org) and the National Academy of Elder Law Attorneys (naela.org).

Preventing Family Conflicts

One of the biggest challenges an executor often faces is family tension. Encourage your uncle to clearly communicate his wishes to beneficiaries ahead of time, including who will receive personal belongings and family heirlooms. Wills often leave these decisions to the executor, which can create unnecessary friction.

If he has not done so already, suggest he create a written list outlining how personal property should be distributed. Clarity now can help prevent potential conflict in the future.

Executor Fees

Executors are generally entitled to compensation, which is paid by the estate. In many states, fees are based on a percentage of the estate’s value, often ranging from 1% to 5% and potentially higher, depending on the size and complexity of the estate.

However, if you are also a beneficiary of your uncle’s estate, you may choose to waive the fee. Executor compensation is taxable income, while inheritances typically are not subject to income tax.

Serving as executor can be time-consuming. With good organization and clear communication, it is a manageable responsibility, and a meaningful way to honor your uncle.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.