26% of Americans say recent inflation has made them understand the importance of establishing an estate plan as an extension of financial planning. Indeed, estate planning is an important way to preserve wealth and legacy across multiple generations. Being given the role of estate executor – meaning you’re legally responsible for setting a deceased person’s estate – is a complex and time-consuming responsibility. By taking time to read up on common mistakes made by executors and how to avoid them, you can make the process as smooth and efficient as possible.

Paying bills too quickly

It’s common for executors to start paying the deceased person’s debts and bills as soon as they start receiving them. However, it’s important to first get clear on what payments should be prioritized over others; a probate lawyer can advise you here. Funeral costs, along with state and federal taxes, for instance, are more important than other debts like household bills. So, don’t allow yourself to be pressured by family members to distribute assets before you’re ready; doing so may leave you without enough funds to reimburse creditors. In this case, the responsibility for debt payment can fall on you personally – so this is something you want to be careful to avoid.

Allowing assets to go missing

Estate planning is increasingly being recognized as an important process that allows families to build multi-generational wealth. An estate planning lawyer can help people prepare wills and trusts, including asset protection planning, in order to preserve their legacy. For executors, it’s important to understand that once a person dies, all their assets now belong to that person’s estate. The executor is required to distribute the assets as per the decedent’s will – that also means protecting the assets from family members who may try helping themselves while the estate is being settled. So, it’s important to ensure everything in the estate is present and accounted for at all times. Similarly, it may also be necessary to invest in a home security system to further ensure the safety of tangible items.

Mismanaging real estate

Administering real estate is a huge responsibility. If the home is to be sold, it’s up to the executor to determine the listing price, as well as decide whether to make any improvements before putting it on the market. However, home improvements should only be made if the executor is permitted to spend estate assets in this way. On the other hand, if the home is going to be left empty for a long period of time, it’s also important to stay on top of maintenance. If left too long before being discovered, something like a leaking faucet can end up causing expensive damage, and delay a sale. It’s also important to keep in mind insurance policies only cover empty properties for a certain period of time; if the home’s to be left vacant for any longer, you’ll need to get empty property insurance.

Taking on the responsibility of estate executor is rarely straightforward. By reading up on the most common mistakes and how to avoid them, you can make sure the process goes as smoothly as possible.