• 07
  • March
    2011

Choosing an executor for your estate (known as a personal representative in Florida) is difficult. Your choice could ignite controversy between the executor and others who were not chosen, even though they might not want the job if they really knew how much work can be involved. The executor administers the estate and remains in charge until it is legally closed.

Before the estate can be closed, the will must be admitted to probate, where a court determines if it is a legally valid document. Once that is determined, creditors and taxes, if any, are paid and then the named beneficiaries receive their share of what is left. If there is an estate tax audit or a will contest, the executor must oversee that process, too. Because of all these factors, the job of executor can sometimes last for years.

Recently, the already-difficult job of an executor got a little more difficult. The reason is the tax law that President Obama signed at the end of 2010. It gives widows and widowers a special new break: for deaths in 2011 and 2012 (and maybe more, if the law is extended), a surviving spouse can carry over any part of the $5 million-per-person federal estate tax exclusion not used by the spouse who recently died.

The carry-over of the estate tax exclusion is referred to as "portability." To use it, the executor for the spouse who died needs to transfer the unused exclusion to the surviving spouse. The exectutor of the spouse who died needs to file an estate tax return, even if no estate tax is owed. If they don't, the surviving spouse does not get the portability.

So now, in addition to dealing with the personal property of the deceased and dealing with heirs who want their money yesterday, the ideal executor needs to be on the ball regarding paperwork and deadlines.

Florida probate attorneys have many factors that they would advise people to look for in potential executors. In tomorrow's post, we'll cover several of these factors.

Source: New York Times "Choosing the Right Executor for Your Estate" 3/2/2011