Choosing the right executor for your estate is an incredibly important decision. The executor is the person who manages your estate after you pass. Their job is to ensure that your wishes are carried according to your will.
Executors handle all the legal, financial, and administrative tasks involved in settling an estate. They manage assets, pay outstanding bills, file tax returns, communicate with the beneficiaries, and distribute assets. Sometimes, they must secure and protect assets until they can proceed to distribution.
Picking the wrong person could lead to a great deal of confusion for your beneficiaries, creating unnecessary stress during an already difficult time.
In this article, we explore some of the factors you must weigh when naming your estate’s executor.
Consider Your Lifestyle and Needs
For example, if you have a large, complex estate, you may want to choose an executor who has experience managing complex finances or legal affairs. Similarly, if you have specific cultural or religious beliefs that impact your estate plan, you'll want to choose someone who shares those beliefs. By carefully analyzing your lifestyle needs, you should look for an executor who understands your values and is capable of adhering to them.
Check Qualifications
Investigate the credentials and qualifications of all potential executors, and make sure they have the necessary skills to handle your estate.
It’s generally a good idea to look for an executor with a background in finance or law. You could also consider someone with experience managing similar estates.
Review Fees and Costs
Be aware of any fees or costs associated with appointing an executor. If mismanaged, these expenses easily add up over time.
Potential expenses include:
- Taxes
- Outstanding debts and bills
- Funeral and burial expenses
- Travel expenses for meetings
- Executor fees (if you hire a professional)
- Maintenance of assets (if the executor must look after assets before distributing them)
- Estate administration fees (legal expenses associated with managing and distributing assets)
Inquire about these fees early when planning your estate. By doing so, you can make informed decisions about your executorship and ensure that your family doesn’t face unexpected financial burdens6.
Find Someone Who Will Respect Your Wishes
Your executor must be reliable and trustworthy, and they need a clear understanding of your values and beliefs.
You should candid conversation with your chosen executor about your expectations and objectives. Doing so helps both you and them. It allows them to make sure they are comfortable and up to the task, and it gives you a sense of whether you want to trust them with this responsibility.
Draft a Clear Agreement
Create a written document that clearly outlines the terms and conditions of the executorship. Such an agreement should cover all the critical aspects of executorship, including the distribution of assets, timelines, and any specific instructions the executor should follow.
Also, include provisions for dispute settlement or changes in circumstances. When it comes to your estate, planning is prevention. Clearly outlining your wishes now can keep confusion and conflict to a minimum, even when there is a dispute.
The Law Office of David A. Martin & Associates is here to help you plan your estate and choose the right executor to meet your needs. To consult with our team, contact us online or call our office at (916) 299-3936.
