Being named as a co-executor of an estate is a high honor for most, especially those tasked with managing their relatives’ large and expansive estates. However, if you share the executor’s responsibility with other relatives, such as siblings, or even your children, you may encounter issues at one time or another. Understanding the obstacles, you are likely to face can help you to better prepare as a co-executor in Arizona during someone’s time of need.
With any estate plan, you will likely have to mediate disputes among relatives and those designated as heirs to the estate. Securing properties and assets according to law is highly advisable to minimize these disputes.
Time management issues
Handling a large estate is not always feasible for everyday people, especially if they do not have any background or experience handling financial matters such as property taxes and asset liabilities. Work together with an attorney who specializes in executors and estate planning to minimize confusion. You can also work alongside a professional CPA to assist with financial planning and taxes as necessary.
Taxes and personal liability
An executor to an estate is typically responsible for paying all taxes owed before assets and properties can be distributed. It is essential to explain that all taxes, fees, and debts must be paid to any other parties before working on the estate you are managing and co-executing.
Having concerns over out-of-pocket expenses is legitimate, especially if you are handling a massive estate. Frequently, executors are permitted to receive a commission for the time and effort they put into managing the estate, which can help you remain motivated throughout the process. Usually, commissions are determined by the size and overall value of the estate.
Working alongside an attorney who understands co-executor positions and handling estates is highly advisable for anyone named an estate’s executor. The correct legal representation can help you streamline the process of designating and managing any assets and property all the heirs have inherited.