Duties and Responsibilities of a New Jersey Executor

Being named the executor of a will can be both an honor and a burden. For most people, acting as the executor means a loved one has died and you are carrying out their final wishes. It’s the final task you can do for that person. It’s a very special duty.

However, the task itself is fraught with the emotional weight of the situation. This can be overwhelming at times, so it’s good to have clear steps to follow. Here are the basic steps you can take to ensure that you meet your legal responsibilities and fulfill your moral and familial obligations. Please read through the entire list before getting started, and make sure to keep good records.

First Things First

Your first steps will include:

1. Obtain Letters Testamentary
   • One of your first tasks will be to file the original will* and a death certificate with the Surrogate’s Court in the county where your loved one lived.
   • You will complete the probate application and take an oath to uphold your duties.
   • You will need to post bond if required by the will or the court. That means you’ll obtain a surety bond which acts as a financial guarantee that you will manage the estate responsibly. The bond protects the beneficiaries from mismanagement or fraud. 
     • *If there is no will, you will act as administrator, not as executor.
2. Asset Identification and Inventory
   • Next, you will locate and secure all estate assets. To do so, review the will, any banking or other financial statements, and personal records which might list assets. You should also check any digital accounts, contact financial institutions, and keep a record of physical assets.
   • Then file a formal inventory with the court. This entails completing and submitting forms with any documentation you need, usually within 60 days of the death. Please call the Surrogate’s Court in advance to determine their particular requirements.
   • Obtain appraisals for valuable property. Contact a certified appraiser who specializes in estate appraisals. They will inspect and appraise the decedent’s property and provide you with a detailed report that meets legal requirements.
   • Open an estate bank account. You must first obtain a death certificate (you’ll get them from the funeral home) and a Taxpayer Identification Number (EIN) from the IRS. Take these to the bank to set up the account.

Financial and Legal Responsibilities

The second phase of your duties involve the following:

1. Creditor Management
   • Publish a notice to creditors in approved newspaper. After the will is admitted to probate, the executor must notify potential creditors within 60 days.
   • Notify known creditors directly in writing. 
   • Review and validate any claims against the estate. To do this, the executor should review each claim within nine months of the decedent’s death. Once reviewed, the executor should provide written notice to the creditor of acceptance or denial of the claim.
   • Once claims are reviewed, the executor should pay legitimate debts and expenses.
2. Tax Obligations
   • The executor should file the estate’s final federal and state income tax returns by April 15 of the year following the death.
   • Obtain tax clearance certificates which you may do after submitting all necessary tax forms and settling all tax liabilities.
   • Pay any outstanding taxes owed by decedent.
   • File estate tax returns if applicable, which would be i) if the total value of the estate exceeds the federal tax exemption, which is $13.99 million if the death occurred in 2025, ii) the estate transfers any unused exclusion to a surviving spouse.
3. Asset Management
   • Maintain and protect estate property by ensuring it is properly insured, securing the premises, and keeping accurate records of all estate assets. Make sure to pay any necessary taxes.
   • Continue or terminate business interests.
   • Collect debts owed to the estate.
   • Make necessary repairs to real property.

Distribution and Final Steps

1. Beneficiary Communication
   • Make sure to provide required notices to heirs and beneficiaries.
   • Keep beneficiaries reasonably informed of estate progress.
   • Handle any beneficiary inquiries or disputes.
2. Asset Distribution
   • When ready, distribute assets according to the will’s terms.
   • Obtain signed receipts and releases from all beneficiaries.
   • Transfer titles and deeds properly.
3. Final Accounting and Closure
   • Prepare the final accounting for the court.
   • File the petition for final settlement.
   • Distribute the estate’s remaining assets.
   • Close the estate bank accounts.

Ongoing Fiduciary Duties

1. Record Keeping
   • Make sure you maintain detailed records of all transactions.
   • Keep all the receipts and documentation in a safe place.
   • Prepare periodic accountings, if required by the court.
2. Prudent Management
   • Always act in the best interests of the estate and beneficiaries. It’s your fiduciary duty as the executor or the administrator.
   • Steer clear of any conflicts of interest.
   • Ensure you make reasonable investment decisions and seek professional guidance if necessary.
   • Seek court approval for major decisions when required.

Make sure you observe all of your responsibilities as the executor by carrying out your responsibilities “the care and skill of a reasonable person.” If you breach your fiduciary duties, you may be held personally liable.

If you have questions or concerns about your estate or a loved one’s estate, contact the attorneys at Sussan Greenwald & Wesler.

609-409-3500

Further Reading:

• Estate Planning: Who, Me?
• Will vs. Estate Planning: What’s the Difference and Why It Matters
• Trust Basics for Trustees and Beneficiaries