The executor of a will can take everything only if they are the sole beneficiary of a decedent's estate and all of the decedent's debts have been paid.
While beneficiaries can often disagree with an executor's decisions, unless the executor clearly violates the terms of the will or breaches their fiduciary duty, there is typically nothing a beneficiary can do about it.
What Powers Does an Executor Have? The executor can access the bank accounts, any assets, and documents related to the estate. However, the executor is only supposed to carry out the wishes mentioned in the will. Otherwise, they are liable for abusing the powers or making mistakes.
The executor is entitled to 5% of the first $200,000 of corpus; 3.5% of the excess over $200,000 up to $1,000,000; and 2% of the excess of the corpus over $1,000,000. From a practical standpoint, using my example of a $400,000 estate, my hypothetical executor would be entitled to a commission of $17,000.
While executors have discretion in some areas, your core decision-making is bounded by: The deceased's will. You must follow their distribution wishes rather than diverging based on your own judgments.
The executor has authority from the county probate court to act in this role, but that doesn't necessarily mean that the executor has the final say on all decisions regarding the estate. In fact, they're instead tasked with simply following the guidelines set forth by the will and other estate planning documents.
Executors who violate their duty may face legal action by beneficiaries or creditors, although they cannot be held accountable for a decline in asset value unless it resulted from their unreasonable actions.
Before an executor can provide any funds to a beneficiary, they have to ensure that all the deceased's bills, taxes, and estate administration expenses are paid. The executor must notify any known creditors of the death so those creditors can make a claim against the estate.
As executor, it is your responsibility to locate the original will and submit it for probate. It is a good idea to get it now and make sure you are keeping it in a safe place.
If you're wondering whether an executor can override a beneficiary, you're asking the wrong question. An executor can't override what's in a Will. If you're a beneficiary mentioned in someone's Will, the executor can't cut you from the Will after the testator has died. You still have rights to the estate as written.
An executor can only take money from the estate if it is for the benefit of the estate or outlined in the will. An executor has authority to manage finances for an estate and allocate funds to pay for any fees or expenses surrounding the estate.
An executor should be someone who's trustworthy, financially responsible, organized and respected by the beneficiaries.
An executor isn't allowed to act in a way that financially harms an estate or its beneficiaries. Prohibited behavior can include theft, forgery, secrecy, negligence and self-dealing. An executor must always act in the best interests of the estate and its beneficiaries.
An executor/administrator of an estate can only withdraw money from a deceased person's bank account if the account does not have a designated beneficiary or joint owner and is not being disposed of by the deceased person's trust.
California has one of the most detailed schemes, which provides that the executor fee is four percent of the first $100,000 of the estate, three percent of the next $100,000, two percent of the next $800,000, one percent on the next $9 million, one-half of one percent on the next $15 million, and a “reasonable amount" ...
For the inheritance process to begin, a will must be submitted to probate. The probate court reviews the will, authorizes an executor and legally transfers assets to beneficiaries as outlined. Before the transfer, the executor will settle any of the deceased's remaining debts.
As noted in the previous section, an executor cannot change a will. This means the beneficiaries who are named in a will are there to stay. Put simply, they cannot be removed, no matter how difficult or belligerent they are being with the executor.
While California law grants executors considerable authority in managing estate assets, the powers of an executor of a will are limited by the fiduciary duties owed to the estate and its beneficiaries. This means that executors are legally required to act in the best interests of the estate and its beneficiaries.
California: Allowable fees are 4 percent of the first $100,000, 3 percent of the next $100,000, 2 percent of the next $800,000, and 1 percent of the next $9 million of the estate. “Extraordinary compensation” might apply if the executor performs major services like helping to keep a business running.
Secure the home and other assets as quickly as possible. Inform heirs that this is the law. Also share information about the decedent's wishes, which may be described in a will or listed in a separate document (the separate document isn't binding on the executor but can be a good roadmap for asset disbursements).
No. Typically, an executor cannot arbitrarily decide who receives which property.
Families of a decedent may do this if they feel that the current executor has abused their power, or are not exercising due diligence in their duties. Anyone with a stake in the estate can make the motion to remove the executor with the probate court, and thus they are contesting them.
In essence, while both roles are powerful within their domains, trustees often have more enduring and autonomous control over the assets they manage.