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Acting Executor, Beneficiaries, Common Estates, Debts, Estate Income Taxes, Estate Tax Rates, Estates, Executor, Executor Obligation, Fiscal Year Return, Formal Probate, Formal Probate Process, Obligations. Estate Closing, Personal Tax Rates, Property of the Decedent, Short Year Return, Tax Professional, Taxable Income
In common estates going through a formal probate process, executor obligation may extend beyond the estate closing. Essentially, the core obligations an executor must achieve are the following:
- Pay the debts of the estate.
- File and pay all taxes of the estate.
- Distribute remaining property of the decedent.
Normally, completing the core obligations is necessary to close an estate. Then again, there is always an exception to the rule. One exception is that tax filing deadlines may carry over beyond the estate closing. In essence, since the estate closed, the former executor becomes an acting executor until completing all obligations of the estate.
While planning your estate, common sense is necessary to select a good strategy. In common estates, there are many options in selecting a strategy designed to execute your estate plan. Since forming a strategy involves many decisions, you need to use common sense to make good decisions. Otherwise, problems may result for your beneficiaries and your executor. In essence, common sense leading to good decision making is the formula for a sound estate plan.
Although avoiding probate is preferable in common estates, there is still a need to list beneficiaries in your will. As mentioned in the article 
To properly plan your estate, it’s important to understand how your estate size will influence your estate plan. As explained in the article