Decline executor duties in Illinois? Moneyist says yes, with a catch

A reader asking whether they can decline executor duties in Illinois got a clear answer from MarketWatch’s Quentin Fottrell: being named in a will is not the same as being forced into the job.

The question came from a person who said a friend in Illinois is seriously ill, on Medicaid and has named them both power of attorney and executor of her will. The friend owns a home with a reverse mortgage, which the reader said has helped pay for caregivers, and there may be little equity left after debts are settled.

The reader, writing to Fottrell’s Moneyist column, said they live out of state and had already handled a sibling’s estate, an experience they described as costly and time-consuming even with legal help. They said the friend has prepaid burial arrangements and no close family or friends, which is why they reluctantly agreed after being pressed.

Can you decline executor duties after someone dies?

According to Fottrell, a person who has been nominated as executor can generally refuse the role after the person dies, provided they have not already accepted appointment from the probate court or started acting as executor. He wrote that carrying out prepaid funeral wishes, by itself, does not mean the person has taken on the full estate role.

Fottrell also drew a line between power of attorney and estate authority. He said a power of attorney ends at death, and after that point only a court-appointed executor or administrator has legal authority to deal with the estate.

For Illinois, Fottrell said the nominated executor would need to file a formal renunciation with the county probate court, such as a Renunciation of Nominated Executor or Renunciation of Right to Act. He said that should be done quickly and before taking formal steps to administer the estate.

Why a small estate can still be a big headache

The reader’s worries were not just about distance. The friend’s home is reportedly in poor condition, carries a reverse mortgage and could also create trouble if property taxes or homeowners insurance fall behind.

Fottrell wrote that estates with little money can still be hard to handle because creditors, debts and property problems do not vanish. He said executor duties can include opening probate, finding and safeguarding assets, valuing property, notifying creditors, handling valid claims, paying taxes and debts, defending the will if challenged and distributing what remains.

Executor pay varies by state, Fottrell wrote, but can often be a percentage of the estate. In this case, he noted, there may not be much left after bills are paid.

What options did The Moneyist suggest?

Fottrell said the cleanest option would be for the reader to tell the friend and her attorney now that they do not want to serve. If the friend is still mentally competent, he wrote, she can update the will and name someone else.

He listed possible alternatives, including the friend’s attorney, a professional fiduciary, a bank or a trust company. He also suggested asking the friend to name a co-executor or backup executor.

If the reader waits until after the friend dies, Fottrell said they can still decline as long as they avoid taking on the legal role first. If they hold the original will, he said Illinois law requires submitting it to the probate court in the friend’s county after her death.

Fottrell’s bottom line was practical: the estate will go through probate one way or another, and an in-state executor would likely have an easier time handling it.

This story draws on original reporting from MarketWatch.