How can an accountant help you fulfill your ethical responsibilities as an executor of a loved one's will or estate? Here are just some of the valuable things they can help you with to accomplish your responsibilities as an executor. 

1. Understanding Fiduciary Duty

In order to fulfill your ethical duties to the estate, you must first understand them. Few Americans have ever served as a fiduciary for someone else, so they may have little knowledge about what the role means.

A fiduciary for an estate is obligated to act in the best interests of the estate. They have a duty of care and a duty of loyalty. This is a relatively simple concept, but it can be hard to put into practice. How much leeway you have, what is the best interest of the estate, and how you balance financial and moral considerations are not easily answered questions.

An experienced accountant will help you understand fiduciary responsibilities as they relate to estates, heirs, assets, and debts. 

2. Making Ethical Decisions

In a well-written estate plan, many of the decisions about estate finances will be dictated by the documents put into place - but not all of them. You may not have to decide if it's ethical to allow one heir to live in the deceased person's house because the will specifies that the house is to be sold. However, you may have to make a lot of decisions about how to sell the home. 

This is where a professional can help guide you. An accountant, for instance, may help you decide how to balance the speed of the sale while still getting a good price. They may also work with you to help you understand the tax implications of various choices. If one heir wants to buy out the others, the CPA can help come up with a fair distribution plan. 

3. Avoiding Self-Dealing 

One of the most tempting dangers of being an executor is treating oneself preferentially. This is often called self-dealing. Consider that house which the deceased ordered to be sold and the value distributed among heirs. As executor, you may be able to ethically sell that home to yourself at a market rate.

However, if you buy it at a discounted rate, you may be self-dealing. An accountant can help you avoid this.

Of course, not all self-dealing scenarios are cut-and-dried. Some, such as how to pay yourself a fee or what are appropriate investments, could be complicated and may require experience to spot and avoid.

4. Providing an Impartial Voice

Certified public accountants (CPAs) are trained to let the numbers do the talking. If you have difficult decisions to make, such as how to divide assets fairly among a generation of heirs, they will work with the hard facts to find the best solutions. From running various scenarios to examining tax consequences, this impartial and objective research will make your decision less emotional, less stressful, and fairer to all. 

5. Reassuring Heirs and Family

The executor isn't just answerable to the person whose estate they manage. They are also morally responsible to the heirs and stakeholders, including creditors. Unfortunately, managing these individuals may be just as challenging as managing the actual finances of the estate.

An accountant can help you by providing the written data you need to demonstrate how you are responsibly caring for the estate. For instance, having an accountant involved in the valuation of certain assets reassures heirs that the numbers are reliable and independent. They can help you present financial statements, prepare court documents, and prove all assets and debts are accounted for. 

Where to Learn More

Could a CPA help you discharge your responsibility as a fiduciary for your loved one's estate? If so, start by meeting with the professionals at Bliss & Skeen, CPAs. We will help you be the best executor you can be to serve both the estate and its heirs with confidence and pride.