It’s an important question: Who can be trusted to take care of your estate when you’re gone? When you pass away and your will is accepted for probate, your executor “steps into your shoes,” meaning they can perform all the legal tasks you used to do. This includes selling your property, paying creditors, bringing lawsuits, reviewing medical records, and distributing your assets. Clearly, acting as an executor is an important job, so who should you choose to handle your final personal affairs? What traits make for a good executor, and who by default is unable to serve?
Key Points
- Executor Responsibilities: Managing the estate, paying debts, distributing assets, and handling legal matters.
- Important Traits: Responsibility, financial stability, emotional grounding, and patience.
- Disqualifications: Individuals with financial instability, criminal records, or non-U.S. citizens living abroad.
Important Definitions
- Executor: The person appointed to administer the estate of a deceased person.
- Probate: The legal process through which a deceased person’s will is validated and their estate is distributed.
- Bonding: A form of insurance that protects beneficiaries if the executor mishandles the estate.
Tips for Choosing the Right Executor
1. Pick Responsible Parties Only
The most important quality your executor must have is responsibility. They don’t need to be an attorney, accountant, or financial planner. They just need to be responsible enough to hire the right people, address estate matters promptly, communicate effectively with beneficiaries, and make hard decisions when necessary. If you don’t have responsible friends or family members, you can name an attorney, accountant, bank, or trust company as executor, though they may charge additional fees.
2. Consider People in Good Financial Standing
Your choice of executor needs to have suitable personal finances. People with many creditors, no credit history, or those who have declared bankruptcy are not good choices, as they often can’t get bonded. Bonding serves the purpose of paying beneficiaries if an executor mishandles estate funds. If the bonding company deems an executor a bad financial risk, the court will likely not allow your choice of executor.
3. Name at Least One Younger Successor
Since wills do not expire, your estate may be probated using a will that is more than 40 years old. Many things can change during that time. While you only need to name one executor to make your will valid, you should try to name at least one additional younger, healthy successor executor who is likely to outlive you. This can be done by explicitly naming the person or by creating a mechanism in your will for successor executors.
4. Don’t Worry: Location Usually Does Not Matter
An executor does not need to live close to you. While they may prefer to visit your house to ensure your personal property is distributed and to meet with your estate’s attorney, many tasks can be done without ever coming to your town. If your estate requires services like disposing of furniture, your executor can hire a company to do it and pay a responsible party to be present while that service is provided.
5. No Drama, Please
Avoid naming beloved friends or family members who do not get along. If only one of the parties is named as executor, they may use the position to exact revenge on the other individual. In such cases, either name both parties to serve together to force them to work with each other, or name neither of them.
6. Don’t Name Disqualified Individuals
Executors need to sign checks and handle various legal tasks. Courts tend to not approve executors they have trouble getting jurisdiction over, or those with a criminal past. Non-U.S. citizens living outside the U.S. and former felons are typically disqualified from being appointed. Minors cannot serve as executors.
7. Think About Someone Patient and Emotionally Grounded
Most importantly, choose an executor who can handle hard work without hesitation, maintain emotional balance, and apply tough love to beneficiaries. Probate work can be long and frustrating, requiring patience and a willingness to invest time.
Additional Information
- Regular Reviews: Periodically review your choice of executor to ensure they are still the best fit.
- Consult Professionals: Seek advice from an estate planning attorney to understand the best options for your situation.
- Communication: Clearly communicate your choice of executor and their responsibilities to your heirs to avoid misunderstandings.
Frequently Asked Questions (FAQs)
Q: Can I name co-executors for my will? A: Yes, you can name co-executors to share the responsibilities. This can be useful if you have multiple trusted individuals or if you want to balance responsibilities.
Q: What if my executor is unable or unwilling to serve? A: It’s wise to name at least one successor executor in your will. If the primary executor cannot serve, the successor can step in.
Q: Can I change my executor after my will is created? A: Yes, you can update your will to change the executor at any time, as long as you are legally competent to do so.
Q: Should I compensate my executor? A: Executors are typically entitled to reasonable compensation for their services. The amount can be specified in your will or determined based on state laws.
Q: What happens if my executor makes a mistake? A: Executors have a fiduciary duty to act in the best interest of the estate and beneficiaries. If they make a mistake, they can be held personally liable. This is why bonding is important.
Take Action Now
If you need assistance with choosing the right executor or have questions about your estate plan, contact me today. At Supernus Law, we specialize in creating comprehensive estate plans tailored to your unique needs. Schedule a consultation with me, Jedediah McClure, to discuss your estate and ensure your plans provide the support and protection your loved ones need.
Contact Information:
- Phone: (618) 354-0302
- Email: jed@supernuslaw.com
- Website: Supernus Law Website
Ensure your estate plan is comprehensive and meets your needs. Let’s work together to protect your legacy and provide peace of mind for you and your family.
DISCLAIMER
This post is for informational purposes only and is not intended as legal advice. Please do not act or refrain from acting based on anything you read on this site. You should always seek competent legal counsel before taking any legal action. Using this site or communicating with the Supernus Business & Law Center, LLC through this site does not form an attorney/client relationship.