What Does Executor Mean?
An executor is a representative appointed in a will to settle the affairs of the deceased and ensure their written wishes are carried out. Responsibilities include protecting the deceased’s assets and property, arranging for the payment of debts and taxes, and making sure beneficiaries and heirs receive their due. In terms of insurance, this may entail ensuring the appropriate beneficiary receives any life insurance benefits. Moreover, executor’s liability insurance is also becoming more widespread as a means to protect the policyholder from liability claims.
Insuranceopedia Explains Executor
Although an executor is not legally required to be a financial or legal expert, whoever is appointed has the fiduciary duty, or the obligation to act in good faith, honesty and impartiality, to fulfill their responsibilities. In fact, some states require an executor to post a bond to ensure they act in good faith while carrying out the desires expressed in the deceased’s will. Otherwise, a court may require one for the benefit of an estate or trust. In either case, this executor’s bond or fiduciary bond serves as protection against embezzlement or fraud by the executor. In a similar vein, executors are able to avail of a relatively new insurance product, executor’s insurance, to cover damages that may arise from claims of error, omission, or negligence. These damages include reasonable expenses, costs awarded against the insured, defense costs, and the amount needed to correct an error or render the estate whole.