Seven Critical Errors Executors Make and How to Prevent Them

Being appointed as an executor of an estate is both an honor and a significant responsibility. The role requires careful attention to detail, organizational skills, and an understanding of legal and financial obligations. However, many Florida executors make common mistakes that can lead to delays, legal issues, and strained family relationships. In this article, we’ll explore these seven common executor mistakes and how to avoid them, ensuring a smoother estate administration process.

In his video, Seven Executor Mistakes and Blunders, Probate Attorney Bill O’Leary outlines the steps an executor must take to manage the estate and the pitfalls he sees occur for Jacksonville executors.

1. Are You Organized Enough to Manage the Estate?

One of the most crucial qualities for an executor is being organized. Executors must manage various tasks, such as collecting assets, paying debts, and distributing inheritances. Disorganization can lead to missing important deadlines, losing track of assets, or making errors in accounting. To avoid these issues, create a detailed checklist of responsibilities and set up a system for tracking all documents and communications. Using digital tools and keeping meticulous records can also be beneficial. Read more in our article, Settling an Estate: Knowing What to Do and When to Do It

2. Did You Handle the Initial Steps of Estate Administration Properly?

The initial steps in estate administration are vital. This includes obtaining a tax identification number for the estate, opening an estate bank account, and filing the will with the Florida probate court. Neglecting these tasks can cause significant delays and complications. As soon as possible, contact the IRS to get a tax ID number and establish an estate account to manage the estate’s finances. This separation of funds ensures transparency and protects against allegations of misuse.

3. Have You Collected All the Estate’s Assets?

An essential duty of an executor is to “marshal” the assets—locating and securing all property owned by the deceased. This includes bank accounts, real estate, investments, personal belongings, and any other assets. Failing to do so can result in assets being overlooked or misappropriated. Executors should conduct thorough searches, including checking for safe deposit boxes, hidden assets, and any digital assets. A professional appraisal may be necessary to determine the value of certain items.

4. Did You Pay Off All the Debts and Taxes?

Before distributing any assets to beneficiaries, an executor must pay off the deceased’s debts and taxes. This includes not only outstanding bills and loans but also any estate taxes due. Failure to pay these liabilities can lead to legal complications and personal liability for the executor. To avoid this, executors should notify all potential creditors, set a deadline for claims, and work with a Jacksonville probate attorney to ensure all obligations are met.

5. Are You Distributing Assets Too Quickly?

One common mistake is making early distributions to beneficiaries before all debts and taxes are paid. While it may seem compassionate to help beneficiaries in need, it can backfire if unexpected claims arise later. Executors should wait until all liabilities are settled before distributing the remaining assets. This prevents the need to reclaim funds from beneficiaries, which can be difficult and lead to disputes.

6. How Well Are You Communicating with Beneficiaries?

Lack of communication can lead to misunderstandings, frustration, and even legal disputes. A recent article from Market Watch explains the result of the executor mistake of poor communication: “My late aunt gave her husband a life tenancy in her home—but her attorney won’t even let us see the will. Is this a bad sign?”  Beneficiaries have the right to be informed about the estate’s progress, and regular updates can help prevent suspicions and complaints. Executors should provide timely and clear information about the steps being taken, any delays, and the expected timeline for distributions. Good communication helps build trust and reduces the likelihood of conflict.

7. Are You Upholding Your Fiduciary Duty?

As an executor, you have a fiduciary duty to act in the best interest of the beneficiaries and the estate. This includes avoiding conflicts of interest and not engaging in self-dealing. For example, using estate funds for personal expenses or favoring one beneficiary over another is a breach of this duty. Executors must always act transparently and fairly, keeping detailed records of all transactions and decisions. Read more in our article, What Does an Executor Actually Do?

Seek the Qualified Guidance of a Jacksonville Probate Attorney to Avoid Executor Mistakes

Being an executor is a challenging role that requires diligence, integrity, and a thorough understanding of one’s responsibilities. By avoiding these seven executor mistakes, you can ensure a smoother process, fulfill your duties effectively, and honor the wishes of the deceased. If you find yourself overwhelmed or unsure as an executor, Schedule a Discovery Call with Team Legacy for guidance and support.