The Executor Checklist: Navigating the Probate Process with Confidence

Introduction

Being named the executor of an estate is both an honor and a significant responsibility. As the fiduciary representative of the deceased’s estate, you’re legally required to administer their assets, settle debts, and distribute property according to their wishes. This comprehensive guide outlines the critical steps executors must take when handling estates, with specific details for Pennsylvania and New Jersey processes. While we focus on these two states, it’s important to note that procedures, timelines, and terminology vary significantly across different states, though the general responsibilities remain similar nationwide.

What is an Executor?

An executor (sometimes called an administrator or personal representative) is the individual appointed in a will to manage and distribute a deceased person’s estate. This role carries a fiduciary duty—the highest standard of care under the law—requiring honesty, impartiality, and diligence in acting solely in the best interests of the estate and its beneficiaries.

The Probate Process: Getting Started

1. Obtain Legal Authority

Generally: Each state has its own probate court system and terminology for the documents that grant executor authority. These documents, regardless of name, serve as legal proof of your right to act on behalf of the estate.

Pennsylvania: Submit the original will to the Register of Wills in the county where the deceased resided. Upon acceptance, you’ll receive “letters testamentary” granting you legal authority to act on behalf of the estate.

For a complete list of Pennsylvania county Register of Wills offices: PA Department of State County Offices Directory

New Jersey: File the will with the County Surrogate’s Office. The Surrogate will issue letters of Executorship, which serve as legal proof of your authority to act on behalf of the estate.

For a complete list of New Jersey County Surrogate offices: New Jersey Judiciary Surrogate Offices

2. Notify All Relevant Parties

• Inform all beneficiaries named in the will that probate has commenced
• Contact next of kin (even if not named in the will)
• Notify creditors of the death according to state requirements
• Alert relevant government agencies including:
  • Social Security Administration
  • Veterans Affairs (if applicable)
  • Internal Revenue Service
  • State tax authorities
  • Medicare/Medicaid (if applicable)
  • Department of Motor Vehicles
  • U.S. Postal Service
  • Insurance companies
  • Pension administrators
  • Financial institutions

3. Secure Estate Assets

• Locate and secure all physical property
• Change locks on real estate if necessary
• Collect mail and monitor accounts
• Maintain property insurance and security

Financial Management Responsibilities

4. Establish an Estate Bank Account

Open a separate checking account specifically for the estate. This critical financial planning step helps:

• Keep estate funds separate from personal assets
• Create a clear audit trail for all transactions
• Simplify tax reporting and accounting

5. Create Asset Inventory and Valuation

Generally: Most states require a formal inventory of assets within specific timeframes, though requirements vary. This inventory typically needs to be filed with the probate court and provided to beneficiaries.

Pennsylvania: Executors have nine months to file a complete inventory of all estate assets with the Register of Wills.

New Jersey: A detailed inventory of all assets must be compiled, with informal inventories typically due within 60 days of appointment, though formal filing requirements can vary by county. The inventory should include:

• Real estate
• Bank accounts and investments
• Personal property and vehicles
• Business interests
• Digital assets

For assets with unclear value, professional appraisals may be necessary to establish fair market value as of the date of death.

6. Handle Debt and Tax Obligations

Generally: All states require executors to address outstanding debts and tax obligations before distributing assets to beneficiaries.

Pennsylvania and New Jersey specific requirements:

• Pay valid outstanding debts (medical bills, credit cards, loans). There are, however, certain important exclusions:
  • Federal College Student Loans and Parental Plus Loans are typically discharged upon death
  • Debts exceeding estate assets may not need to be paid from personal funds
• File final personal income tax returns
• File estate tax returns if applicable
• Address state-specific tax requirements:
  • Pennsylvania: File and pay state inheritance tax. For official information and forms, visit the Pennsylvania Department of Revenue Inheritance Tax page
  • New Jersey: Handle New Jersey Inheritance Tax obligations. For official information and forms, visit the New Jersey Division of Taxation Inheritance and Estate Tax page

It is important to note that assets that transfer outside probate are typically inaccessible to creditors, such as:

• Retirement accounts or life insurance policies with a named beneficiary
• Property held as joint tenancy with rights of survivorship or tenancy by the entirety (depending on state law)

Be aware that creditors may try to pressure a surviving spouse to repay debts that legally may not have to be repaid. It is best to consult with legal counsel before making any payments to creditors, especially for large amounts.

Laws and exceptions vary by state and particular circumstances. For estates with unique or complex debts, consulting a probate attorney is recommended. Executors must always prioritize claims correctly and ensure assets are distributed only after satisfying all legal obligations.

According to recent data, proper tax planning can save estates an average of 15-20% in potential tax liabilities, underscoring the importance of professional guidance in this area.

Asset Distribution and Estate Closure

7. Create a Distribution Plan

Before distributing assets:

• Ensure all required debts and taxes are paid
• Account for specific bequests in the will
• Calculate percentage distributions of remaining assets
• Prepare for potential contested claims

8. Transfer Assets to Beneficiaries

Generally: Each state has specific procedures for documenting asset transfers and protecting executors from future liability.

New Jersey: Have beneficiaries execute a Refunding Bond and Release for their inheritance amount. File these documents with the County Surrogate’s Office to protect yourself from future liability.

Both Pennsylvania, New Jersey, and most states:

• Transfer property titles and deeds
• Retitle vehicles and other registered assets
• Distribute personal property according to the will
• Handle any out-of-state property through ancillary probate if necessary

9. Close the Estate

Generally: Estate closure requirements vary by state but typically involve:

• Prepare final accounting of all transactions
• File closing documents with the appropriate court
• Close the estate bank account
• Maintain records for the statutory period (typically 7 years)

Special Considerations

Business Interests

If the deceased owned business interests, executors temporarily become the proxy decision-makers for these entities. This includes voting rights for stocks, LLC membership interests, and partnership shares.

Contested Wills

Be prepared to handle potential disputes among beneficiaries. As executor, you may need to:

• Mediate conflicts
• Present evidence supporting the will’s validity
• Defend the estate against claims
• Seek court intervention when necessary

Conclusion: Beyond Legal Matters - Managing Your Financial Future

The estate settlement process involves far more than just legal procedures. Once the immediate legal requirements are addressed, beneficiaries and executors alike face important financial decisions about inherited assets that can significantly impact long-term financial well-being.

At Financial Life Planning, we help individuals navigate these crucial financial transitions. While we are not attorneys and do not provide legal advice, our expertise complements the legal process by helping you:

• Develop strategies for effectively managing inherited investments
• Create tax-efficient plans for newly acquired assets
• Integrate inheritances into your existing financial plan
• Guide executors on financial aspects of estate administration
• Help beneficiaries make informed decisions about their inheritance

Whether you’re an executor seeking guidance on the financial aspects of estate administration or a beneficiary wondering how to integrate an inheritance into your financial future, our team can provide the personalized financial advice you need during this important transition.

The decisions made following an inheritance often have significant long-term implications. Contact Financial Life Planning today to ensure those decisions align with your broader financial goals and help secure your financial future.

Edward C. Goldstein, CFP®, MBA, President
CERTIFIED FINANCIAL PLANNER ™ Practitioner 
Financial Life Planning, LLC
10,000 Lincoln Dr. East, Suite 201
Marlton, NJ  08053
Phone: 856-988-5480
Fax: 908-292-1040