Have you been named as executor of your parent's estate? What does this job entail? Acting as an executor of an estate can involve a great deal of work, depending on the amount and nature of the assets. Here's what you should know.

Being asked to be an estate executor is an honor and a big responsibility. As you navigate the sadness of losing your relative, here are some key executor duties you will want to familiarize yourself with.

What is an estate executor?
An estate executor is appointed to manage and distribute a deceased person's assets according to their will.

Ten typical estate executor duties:

1.    Inform various people of the death. This includes family members, employers, business partners, insurance companies, attorneys and accountants.

2.    Cancel accounts. This includes the deceased person's credit cards, utilities, banks and other creditors.

3.    Have the will probated. Usually, this means having a lawyer petition the court to probate (or approve) the will. Once the will has been probated, the executor can administer the estate - in other words, perform the rest of the duties on this list.

4.    "Marshal" the assets. This means finding the deceased person's assets, which may be difficult. (Imagine trying to quickly locate every asset you own right now, such as car registrations, stock certificates, account statements, deeds, pension benefits, mortgage papers, and IRA papers. Now imagine trying to do this for someone else.) This is especially more difficult in today's digital age if the decedent has not left a list of usernames and passwords.

5.    Value the Assets. Assets must be valued for estate tax purposes and to provide heirs with a tax basis. (Under the tax law, the tax basis of an asset in an heir's hands is generally the "date of death value.”) Some assets, such as business interests, require an appraisal prepared by a qualified expert.

6.    File tax returns. Depending on the size of the estate, tax returns that need to be filed might include federal and state estate and death tax returns, the decedent's final income tax return, a final gift tax return, and an income tax return for the estate.

7.    Prepare a probate court accounting. Generally, you will need a professional for this.

8.    Handle the debts. After determining what the estate owes, an executor pays the debts out of an estate bank account. Often, this may involve negotiations with creditors where there were contracts in place that need to be terminated.

9.    Distribute the estate's remaining assets in accordance with the deceased person's wishes.

10.    Manage the Assets during administration. Each state has rules regarding how and when the assets can be distributed to the beneficiaries. The executor is responsible for managing the assets prudently (legally defined) during this time.

Preparing a post-mortem letter to ensure your assets will be more easily located after death is a good idea. This is a document you can prepare yourself to tell executors and heirs where everything is located to carry out your instructions.

What is the most overlooked issue when it comes to being an estate executor?
Be sure to file all tax returns and pay all tax liabilities prior to making any beneficiary distributions!