How to Make Your Executor's Job Easier

When you create a will, you appoint someone as the executor of your estate. Instead of executor, Arizona uses the term personal representative (“PR”). When you die, your PR will be tasked with administering your estate. Your estate consists of all your assets. More than likely, you will probably name a PR and one or more successor PRs. Before you even execute your last will and testament, you may want to have a discussion with all the nominated PRs to be sure they are willing to accept the nomination. It will make things a bit easier when you pass if your PR isn’t taken by surprise by his/her nomination.

Duties of a Personal Representative

To help your family members and friends make an informed decision about whether they are willing to take on the responsibility of being your PR, here is a list of a few of the tasks your PR will be handling after you die:

Gathering and protecting your assets.
Determining the date of death value of all assets.
Creating an asset inventory and appraisement.
Reviewing your documents, including your estate planning documents to determine who will get what.
Locating your heirs and providing various notices to the required parties.
Filing probate.
Publishing notice to creditors.
Providing notice to known creditors.
Paying your bills.
Recording documents.
Obtaining an Estate EIN.
Retitling accounts and opening an Estate account.
Keeping a record of all transactions.
Filing your final tax return and an estate tax return.
Distributing the remaining assets in your estate.

The good news is that they can hire people to assist with the administration of your estate and pay their fees with money from your estate. They can hire an attorney or if they take care of things within two years of your death, they may be eligible for an informal probate. Arizona Probate, LLC can assist your PR with an informal probate, from start to finish, at a much lower rate than most attorneys. Even if your PR hires an attorney, he/she will usually need to hire a CPA or tax preparer as well.

You’ve Chosen Your PR, Now What?

Once you’ve decided who to nominate as your PR, it will make his/her life easier if you make sure he/she knows where to locate the following if you pass away:

Your original will;
Contact Information for Your Spouse, Children, Parents, and Any Other Heirs;
Deeds;
Homeowners Insurance Policy & Statements;
Bank Statements;
Brokerage Account Statements;
Titles to Vehicles or Anything Else Registered with the DMV;
Mortgage Agreements and Statements;
Loan Agreements and Statements;
Life Insurance Policies;
Car Insurance Policies;
A List of all Personal Property Worth Over $3000, Including Location of Property;
Annuity Contracts;
Pension Info if it has Death Benefits;
IRA Statements;
Promissory Notes;
Contracts and Agreements Regarding Business Interests;
Documentation on any Other Assets; and
Information Regarding Safe Deposit Boxes.

Original Will

Even if you don’t have a will, the state will appoint one of your intestate heirs as PR and he/she will have to deal with all the same steps as a PR nominated in a will. If you have a will, it’s important that your PR has your original will, otherwise he/she may have to file a more expensive, formal probate. Do not write on or alter your will in any way. If something needs to be changed, call an attorney. You can store your original will in a fire-proof safe you keep in your house. Your PR will need to know where the safe is located and how to open it.

Digital Accounts

In the past, newly appointed PRs often determined what assets are in the estate by going through the decedent’s mail. Nowadays, many people have gone “paperless” and only receive statements via email. This can make your PR’s job more difficult if you don’t plan ahead. Most PRs can’t access online accounts and statements without the decedent’s login information. Sometimes they can’t even log onto the decedent’s phone or computer.

Storing Login Information Securely

You can use an online password manager to store login information, but if you want to grant access to your PR after you die, you need to provide the login information for the password manager app. As with any online application, there’s always the chance that a hacker can gain access to your information. You might consider leaving a list of your login information for all your accounts in a safe deposit box at a trusted bank, but you will need to provide your PR with the information they will need to access your safe deposit box after they have their Letters of Appointment as Personal Representative from the Court. You can check with your bank to be sure that your PR will not be allowed access until he/she provides the bank this documentation. For that reason, you may not want to keep estate planning documents in a safe deposit box at a bank since your PR may not be able to access it until he/she gets his/her Letters of Appointment, or a Certification of Trust, and he/she may not be able to obtain his/her Letters of Appointment (LOA) or COT until he/she has the will or trust that is inside the safe deposit box. You can see how this may cause a problem.

Another Downfall of Renting a Safe Deposit Box

One of the downfalls of leaving a list of accounts and login information in a safe deposit box is that you will have to update it regularly. As a backup plan, you might keep a file or lockbox with one paper copy of a statement from each of your accounts. Most statements will provide your PR with important information such as the titling of the accounts and account numbers. You should be able to print one from your online account, or request one from the financial institution. You could update this file at least annually so your PR will have a better idea of the current balance of each of your accounts. This may help your PR determine whether he/she can use a small estate affidavit to settle your estate as opposed to filing for probate. Until your PR has his/her LOA, none of the financial institutions will share any information with him/her – not even the balance of the accounts.

Digital Estate Plan

For further information and ideas about how to handle your digital accounts, click on the following link to read a FindLaw article: Estate Planning: How to Keep Track of Passwords, Access Keys, and PINs. It goes into details about Two-Factor Authentication and social media accounts.

Hire a Professional

If this sounds a bit overwhelming, consider adding an AZ Licensed Fiduciary to your Will to act as personal representative, or to your Trust to act as successor trustee, so your loved ones don’t have to deal with the headache. Julie Ruetz is an AZ Licensed Fiduciary who is able to act as successor trustee, personal representative, conservator, guardian, or agent under a POA. Call Julie at (520) 252-6726 for further information.

The information on this website is for informational purposes only and should not be construed as legal advice.