Estate Planning 101- How to Choose an Executor
Many people struggle with the choice of who to appoint as Executor for their estate. There may be sticky relationship issues or a lack of understanding of who might be the best fit for the job. Honestly, this decision will make an enormous difference in ensuring that your wishes are followed and that your estate is handled appropriately. There are a number of helpful considerations that might clear the murky waters for a better view.
First, it helps to understand the responsibilities of an Executor. An Executor is the person appointed by you to administrate your will at your death. This legally requires them to follow a number of procedural steps under court supervision.
Immediately locate a copy of your Original Will to be submitted to the Courts for a Probate Process.
After the Court has granted the Letters Testamentary, the Executor can begin to manage the assets held in the decedent’s individual name, keeping a clear and precise record of all transactions.
The Executor then needs to assess the cash needs of the Estate to close accounts, settle debts, and determine if the estate owes an estate tax.
The Executor will handle the settling of all payments, including funeral and other expenses in the administration of the estate. These include working with an accountant to file a final tax return for the year the decedent died.
Distribute the assets in accordance with the decedent’s Last Will and Testament.
It is important to differentiate an Executor from a Trustee. If you only have a Will set up to handle your estate after your death, you will appoint an Executor. If your estate is managed by a Trust, the estate can typically be administered by your appointed Trustee outside of court supervision, and the transfer of assets can be completed more quickly than the probate process. Legal counsel can help you determine which legal document best meets your needs.
So what are some of the things you will want to consider in choosing an Executor?
You are not limited to children or family members. What matters most is choosing someone who will have the availability, good sense and skills to handle the details of a long and complicated process. Because of the work with the local courts, choose someone closer to home rather than someone who might have to take time off work to travel for the estate. Also consider the importance of strong communications skills—a willingness to really talk with you about your wishes and concerns—and perhaps most importantly, someone who is at least a decade younger than yourself.
Executors navigate several relationships on your behalf. They will work closely with financial advisors, real estate agents, attorneys and accountants. Their confidence in communicating with these professionals will be key. They also will deal with the Beneficiaries of your estate - those receiving your assets. Unfortunately, Beneficiaries can often be demanding and crafty, requiring an Executor who can stand their ground and not give in to emotional badgering.
Finally, remember that this person needs to exhibit a high level of integrity. Regardless of their opinions or preference, their job is to follow through with YOUR wishes and plans. They will need to adhere to legal and binding documents and be your conscientious advocate.
As you navigate these big decisions, remember that the team at Hillsborough Wills & Trusts has the expertise to help you Build Your Circle of Security. Contact us at: https://hillsboroughwills.com/contact
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