When a person dies, their assets are typically collected and distributed through a court process known as probate. A person's assets are known as their estate. Estates are probated under certain conditions. Typically, these conditions are when the decedent owns real estate (a land or house) or the individual's personal estate (cars, jewelry, cash, investments) is greater than $100,000.
An estate that is probated requires the appointment of a person who administers the gathering of the assets of the decedent, pays the outstanding bills of the decedent, and ensures that the assets of the decedent are distributed according to the wishes of the decedent as set forth in the person's last will and testament or as provided for by law when a will does not exist. When a will exists, this person is known as an executor. In the absence of a will, this person is called an administrator. For purposes of this article, they shall be referred to as executors.
Under the Illinois Probate Act, before taking on the duties of an executor, the person must give an oath and bond that he will faithfully discharge his duties. This bond subjects the executor to personal monetary liability if he acts improperly.
An executor has the responsibility to ascertain and collect all assets of the decedent. This includes the ability to sue to collect debt due to the decedent. The executor has the ability to settle any claims against the decedent. Typically, the executor may sell any property of the decedent (real or personal) to convert it to cash to pay debts of the decedent or to distribute to the beneficiaries of the estate. The executor must keep a strict accounting of all of his actions, including every amount collected and disbursed. Opening a bank account in the name of the estate and depositing all liquidated assets into the account most easily does this. The executor must also maintain an inventory of estate's assets.
Actions by the executor, which are not permitted by law, including spending money for purposes other than administration of the estate, will result in a breach of fiduciary duty, which can subject the executor to civil penalties and fines.
The executor should work closely with the attorney for the estate in order to ensure that all transactions are done properly and to meet necessary deadlines and requirements imposed by statute.
