What Are the Executor’s Duties During Probate in Texas?

If you have been appointed as the executor of an estate, you have legal responsibilities to carry out upon the death of the estate owner. A probate attorney in Houston, TX, gives a short explanation of what an executor’s duties are during probate.

What Are the Executor’s Duties During Probate in Texas?

Filing the Will and Petitioning the Court

The first duty of an executor is to file the will of the deceased person with the probate court. Probate is the legal process by which the court determines the appropriate distribution of the deceased assets. A probate court will confirm that a will is valid (or in the absence of a will, determine distribution of assets based on state law).

In Texas, the original will must be filed with the probate court within four years of the death, together with the official petition to validate the will and begin the process of probate and formally appoint the executor. The will may be filed by the executor or someone representing the executor. The court will then check the will and verify that it is valid. If all is as it should be, the court will allow the will into the probate process and formally declare the executor to be responsible for handling the estate.

Identifying and Locating the Assets

The executor is responsible for finding and properly identifying everything the deceased owned at the time of their death: real estate, bank accounts and retirement accounts, life insurance policies, investments, vehicles, personal belongings, etc. The executor is also responsible for keeping the assets safe until they are distributed according to the will. Keeping them safe could involve making sure the home of the deceased is secure or moving physical belongings to a safe location.

Properly identifying assets means assembling the documents that prove the existence and ownership of the assets. This means searching for deeds, titles, business ownership documentation, bank account statements, and any other relevant paperwork that prove ownership and verify the value of the assets. In addition, if there are high-value personal items or real estate, the executor may need to get appraisals to determine the current value of those assets.

Notifying Creditors and Paying Debts

Another duty of the executor is to notify creditors of the death, so they have the opportunity to submit claims against the estate. There must be a notice published in the local paper that the state is entering probate, as well as direct notification of creditors that the executor knows of. Creditors may come forward at this point to make claims for payment, such as credit card debt or unpaid loans.

Texas law usually gives four months from the notice of the death for creditors to make claims against an estate. The executor must evaluate the validity of any claims that are made and then pay all valid debts before distributing any assets. If the debts are greater than the value of the estate, then they must prioritize payment of the debts, according to Texas law.

Managing Estate Taxes

There is no estate tax in Texas, but there is a federal estate tax on estates over a certain value. The executor is responsible for calculating the value of the estate to determine if federal estate tax is owed.

If the estate does owe federal estate tax, the executor must file the required forms with the IRS: Form 706, the estate tax return, and if applicable, Form 709, the gift tax return. The forms must be filed and taxes paid within nine months from the date of death and must be done before any assets are distributed.

Distributing Assets to Beneficiaries

This is generally the final step in the probate process. After all debts and taxes have been dealt with, the executor must distribute the remaining assets of the estate to the beneficiaries named in the will. Instructions outlined in the will must be followed precisely: which items go to which person, how much each person receives, and any specific instructions for how distributions are made.

Handling Special Circumstances

Some estates have unique circumstances which need special attention. The validity of the will may be challenged, and there may be claims that the deceased was unduly influenced in making their will. Beneficiaries may dispute the division of assets. There might be administration of trusts involved or guardianships that are part of the estate.

An executor is responsible for handling all such matters and seeking out legal advice as needed to close the estate properly. The executor is not personally responsible for paying legal fees that may arise from seeking legal guidance, as the estate will cover the applicable fees. If there are special circumstances, it is nearly always in the best interests of the estate to engage legal counsel.

Closing the Estate

After all debts and taxes are paid, and all the assets are distributed properly, the executor must close the estate. To close the estate, the executor will file a final accounting with the probate court. This final accounting must describe in detail the actions that were taken during the probate process: how assets were managed, what payments were made to creditors and in taxes, and how assets were distributed to beneficiaries.

The probate court will review the accounting. If everything is deemed to be in order, then the court will declare the estate officially closed. The executor should do a last check to make sure all required paperwork has been filed and the court is satisfied with how the estate was administered. At this point, the executor duties are fulfilled.

Fiduciary Responsibilities of an Executor

An executor has a fiduciary duty to act in the best interest of the estate and of its beneficiaries. This means an executor is legally obligated to manage the estate honestly, fairly, and transparently. They must act in good faith, must not favor any beneficiary over another, and must avoid any conflict of interest. If they do have a conflict of interest, they must declare it to the court.

An executor who fails to fulfill their duties, or acts in a way that is not in the best interest of the estate, can be held liable. They may be removed from their role as executor. They may have to pay restitution to beneficiaries. They may even face criminal charges if there has been theft or fraud.

Seeking Assistance from a Probate Attorney in Houston, TX

Making sure you follow all the legal procedures required for probate can be a lot to sort through, especially if you also have your own work to keep up with.  It is usually a good idea for an executor to get legal help in administering an estate, especially first-time executors or those who have been tasked with handling a large or complex estate. A probate lawyer can not only walk you through everything you will need to do as executor, but can help you understand the reason behind the procedures. Probate is structured to keep everyone accountable for how funds and property are handled.

If you are the executor of an estate, get in touch with Hensley & Krueger Attorneys, PLLC, in Houston, TX. Our team is experienced with matters related to probate, and can help walk you through the process from start to finish.