The executor or personal representative of an estate is responsible for maintaining the estate's assets while these are under the executor's control. While maintaining assets is generally thought of as providing physical repairs, maintenance, and security, it also involves a surprising amount of accounting tasks. What are some of these and why do they matter? Here's what you should know about the most common. 

1. Maintaining a Bank Account

As a separate entity, the estate generally must open its own bank account — even if the deceased person had their own accounts. Bank accounts protect and maintain cash and near-cash assets. They are also used to provide that physical protection by paying for bills related to hard asset maintenance. Proper administration of bank accounts includes avoiding unnecessary fees that reduce their value. 

2. Filing and Paying Taxes

Unfortunately, estate maintenance involves dealing with taxes. You may need to pay property taxes on assets like a house or vehicles. Failure to do so puts the asset at risk of seizure for debts, which is a breach of your fiduciary responsibility. In addition, the estate may be subject to income tax filing and tax bills. 

3. Building an Asset

Maintenance of assets doesn't just mean preventing them from deterioration. The executor must act in the best interests of the estate and its heirs, which can include investing or improvements. Therefore, you might need to decide how to invest an asset for growth without putting it at unnecessary risk. Similarly, the executor may be called on to choose how to budget funds for repairs or updates to real property. 

4. Paying Legitimate Debts

The estate is responsible for many of the deceased person's debts as well as those incurred caring for and winding up the estate. Executors must ascertain which debts or bills are legitimate and for which the estate is liable. They may need to prioritize certain debts. And when new debts are incurred, they often have to explain payment to heirs or the court. 

5. Valuing Assets

Bank and brokerage accounts are fairly easy to value, but you might have to do additional work to find the correct value of other assets — including family businesses, real or personal property, and intellectual property. Without understanding their current value, you can't make the best investment decisions or focus on maintaining assets that bring the most value to the estate. 

Where to Learn More

Could you use assistance with any of these financial elements of estate asset maintenance? Start by meeting with an accountant in your state who specializes in estate administration. With their help, you can successfully meet the challenge of being an executor and making the best choices for your loved ones.