• 4% of the first $100,000
• 3% of the next $300,000
• 2% of everything over $400,000
• And 1% of non-probate assets

The executor/administrator is also responsible for filing estate tax returns and income tax returns for the decedent and the estate.  They can be held personally responsible for their failure to file these returns.

In addition, they owe the beneficiaries of the estate a fiduciary duty.  In law, this is the highest duty owed to another.  The executor has a duty to protect, manage, and care for the estate assets as if the assets were his own.  If the executor/administrator is not careful and dilligent, he or she can breach the fiduciary duty owed to the beneficiary and be personally responsible.  For example, a house is worth $150,000.  The executor fails to get it appraised and sells it for $100,000.  He could be liable for the $50,000 in lost value.

The executor/administrator also agrees to:

• Give notice of the admission of the will to the heirs and beneficiaries
• Make and file an inventory with the Probate Court
• Deposit all funds in an estate account and to keep all records
• Keep estate funds separate
• Invest all funds in a lawful manner
• Make and file a distributive and final account with the Probate Court
• File all tax documents required by law
• Maintain insurance on the estate assets
• Obey all Court orders

The Probate Court issues the executor “Letters of Authority”.  This is an official Court order certified by Probate Court that the person named is the executor of the estate.  The executor uses this Letter of Authority to transact business on behalf of the estate.  The executor can close bank accounts, sell assets, pay bills, and do all things necessary to administer the estate in accordance with the terms of the will.

• File the will with the probate court
• Send notice of the filing of the will to all persons listed in the will and those who would inherit if there was no will or the will was invalid
• Have the executor (or administrator when there no will) appointed.  Once appointed, the Probate Court issues a court order called “Letters of Au­thority”
• Appraise and value the assets
• File an inventory listing the assets in the probate es­tate
• Send notice of the filing of the inventory to the heirs
• Have a hearing if any beneficiaries object to the in­ventory
• Sell assets as needed to pay debts
• Resolve will contests, if any
• Resolve creditor claims, if any
• File estate tax returns
• Transfer and distribute assets to the heirs
• File a final account showing all distributions from the estate

The Court deals with will contest, estate litigation, creditor issues, and other problems that might arise in the administration.

The Court makes sure the executor follows the terms of the will or the law in distributing the estate to the heirs.  The Court requires notice and has hearing at each of the major steps to allow objecting parties to have their day in Court.

In your will, you can identify where your property goes upon your passing.  You can be specific as to which assets passes to which beneficiary.  For example, “I want my house on Main Street to go to my brother, Steve”.  You can also be general as in “The remainder of my estate shall be distributed equally to my two children”.  You can create second levels of beneficiary such as “I want my Procter and Gamble stock to go to my sister, Betty if living and if not to my nephew, Tom”.

The executor named in a will is the person or entity that will conduct business on behalf of your estate.  They are appointed by the Probate Court and will have legal authority to sell you assets, pay your bills, file your taxes, and to make distributions as indicated in your will.  The executor can be a person like your spouse, child, or brother.  The executor can also be a bank or Trust company.  The executor has a fiduciary duty to follow the terms of your will and Probate Court supervises the process.

The guardian named in your will becomes responsible for your children who are under the age of 18.  The guardian exercises parental control and has the same parental power as if they were in fact the parent.  In Ohio you may name a parent, sibling, or friend not related to you or the child.  Ohio allows out of state guardians to be appointed.

Administrator. A person (or entity) who qualifies as the personal representative of a decedent’s estate, where the decedent, at time of death, did not leave a will acceptable for probate with the Court.

Decedent. Describes a deceased person, who died testate with a will that may require probate with the Court, or who died intestate, without a will, with assets that require estate administration.

Executor. A person (or entity) who qualifies with the Court as the personal representative of a decedent’s estate, where the decedent, at time of death, left a will acceptable for probate with the Court.

Fiduciary. As used in the context of this website, refers to a person (or entity) who is charged with the duty of properly administering the assets or property of another. This would include a personal representative, either Administrator or Executor of an estate, or a trustee under a testamentary trust.

Intestate. Describes a person who dies without a will acceptable for probate with the Court.

Personal Representative. A general term that refers to either an executor or administrator who has qualified with the Court on a decedent’s estate.

Testamentary Trust. A trust established by a decedent in his or her will for administration after the decedent’s death. For example, a trust provided in a decedent’s will setting forth the terms for management of estate assets passing to children until they reach the age specified in the will. The trustee of a testamentary trust is normally named in the will.

Testate. Describes a person who dies with a will acceptable for probate with the Court.

Will. Refers to a document executed by a person providing direction for the handling of their estate upon death. In order for a will to be accepted for probate with the Court it must be prepared and executed in accordance with applicable law.