What an executor cannot do will ultimately depend on the state where they are carrying out their responsibilities.
However, there are common actions that executors cannot undertake in any jurisdiction, which we will share below.
This article is part of our free series on private banking and inheritance, ranging from Liechtenstein private banks to expat wealth management, which you can click here to access right now.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- What an Executor Cannot Do
- What Are the Legal Obligations and Responsibilities of an Executor?
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
What an Executor Cannot Do
What an executor cannot do ranges from accessing estate funds and assets for personal benefit to selling estate assets below market value. Additionally, executors cannot act in their own interest over the beneficiaries of an estate and must distribute all remaining assets after paying obligations, liabilities, and taxes have been paid.
What Are the Legal Obligations and Responsibilities of an Executor?
The legal obligations and responsibilities of an executor are relatively standard, but they can vary depending on the state where the executor is carrying out their duties. However, generally speaking, the executor must identify and collect the assets of the estate, complete payment of any obligations, liabilities, and taxes, and distribute assets to the beneficiaries of the estate per the instructions given to them in their capacity.
It’s important to also understand the different beneficiaries, including an irrevocable beneficiary and a revocable beneficiary, which you learn about by clicking the link here.
Executor Can Pay Off Estate Debts
An executor can pay off estate debts and pay any outstanding liabilities of the estate. In fact, the executor must do this prior to any distributions being made to the beneficiaries of an estate.
Overseas Estate Planning
Overseas estate planning is more complicated and requires additional sophistication since different jurisdictions may treat, tax, and transfer assets differently than others. This can slow down, complicate, and increase the costs associated with distributing assets to beneficiaries.
Many different things can impact the distribution of assets to beneficiaries and in fact, how long the executor has to pay the beneficiaries differs on many factors. We share these factors and more in our free guide linked here.
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Frequently Asked Questions
Below are three of the most common questions that we receive from people looking into what an executor cannot do. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
What Can an Executor Not Do?
What an executor can not do will ultimately depend on the state where a will is being carried out. But, generally speaking, an executor cannot sell assets for below market value, engage in illegal activities, act in their own interest instead of the beneficiaries, or do anything before the time that the grantor passess.
Does a Court Need to Approve an Executor?
Yes, a court generally needs to approve an executor prior to the liabilities being resolved or the business of the estate concluded. That said, if assets have been contributed to a trust and a trustee has been named, then the trustee does not need to be approved because probate will not relate to the assets of the trust.
Can the Executor and Beneficiary Be the Same Person?
Yes, the executor and the beneficiary can be the same person. In fact, the executor and the beneficiary are commonly the same person because the grantor of the estate, trust, or will typically wants a trusted member of their inner circle, such as a spouse or offspring to act as the executor of their estate.
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