The responsibilities of an executor in Malaysia include the following:
1. Obtaining grant of probate from High Court
The executor’s first task is to apply for grant of probate, which is a court order that validates the Will and gives the executor the legal authority to administer the estate. Probate establishes the executor’s role and confirms the authenticity of the Will. The executor will have to engage a lawyer to assist on this application.
2. Locating and securing assets
The executor must identify and locate all the assets of the deceased, such as bank accounts, properties, investments, and personal belongings. They need to take steps to safeguard and protect these assets during the administration process.
3. Paying debts and taxes
The executor is responsible for identifying and settling any outstanding debts or liabilities of the deceased. This includes paying off loans, credit card balances, outstanding bills, and any taxes owed to the government.
4. Distributing assets
Once debts and taxes are settled, the executor must distribute the remaining assets of the estate to the beneficiaries as specified in the Will. This may involve selling assets, transferring property titles, or distributing funds from bank accounts.
5. Managing estate affairs
The executor has the duty to manage the affairs of the estate until its final distribution. This includes collecting income, handling rental properties, maintaining assets, and addressing any ongoing financial or legal matters.
6. Accounting and reporting
The executor must keep detailed records of all financial transactions related to the estate. This includes maintaining accurate accounts of income, expenses, and distributions. Periodic accounting reports may be required to be submitted to the court or beneficiaries.
7. Resolving disputes
If any disputes arise among beneficiaries or third parties, the executor may need to take appropriate steps to resolve the issues. This may involve mediating conflicts, seeking legal advice, or appearing in court, if necessary.
8. Finalizing estate administration
Once all the assets have been distributed, debts settled, and necessary legal requirements fulfilled, the executor’s final duty is to close the estate. This involves providing a final account of the administration (all monies received and spent throughout the duration of estate administration) and thereafter, the duty of the executor will be fully discharged.
It’s important to note that the responsibilities of an executor can be complex and time-consuming, especially for larger or more complex estates. Executors can seek professional advice from lawyers, accountants, or other experts to ensure they fulfill their duties properly and in accordance with the law.