Choosing the Right Executor for Your Estate

Choosing the Right Executor for your Estate

No one likes to think about dying, but you make it a lot easier on your loved ones when you plan your estate. Besides deciding who gets each asset you own, you must choose an executor.

This is the person who takes over everything you would have done if you were alive. It may include many legal and financial responsibilities. The executor executes your will and finalizes all financial and legal matters. Choosing the right executor is one of the most important decisions you’ll make. It’s not about who’s your favorite relative or who ‘expects’ you to choose them.

It’s important to follow your head not your heart when choosing the right executor. Here are a few things to consider.

Who can be the Executor?

There are very few rules regarding who can be the executor of your estate. Most people choose their spouse, children, or siblings, but you can choose any family or non-family member who you think best fits the job.

Don’t choose the person who assumes they’ll be the executor, like an older sibling or your oldest child. Instead, focus on the following characteristics as being an executor is a big job.

What Characteristics Should an Executor Have?

The executor has big responsibilities. While it doesn’t have to be someone with a big, fancy title or extensive education, it should be someone who can handle your estate matters which may include legal and financial issues. They may also have to deal with family arguments or people contesting the will.

An executor should be:

• Objective – He/she will follow through on your wishes, which may or may not make all family members happy. The executor must be able to navigate tough waters.

• Financially savvy and secure – Executors take care of all your financial affairs. This may include settling debts, divvying out funds, and selling your estate. You want someone who can handle the pressure and understand the decisions/tasks at hand.

• Steadfast – The executor may deal with relatives and close friends contesting the will. They may also deal with someone trying to influence them to do something other than what the will states. It’s important that you choose someone who can see through these issues and follow your wishes.

Where Should an Executor Live?

Executors don’t have to live in your area, but it’s a nice convenience. There will be times the executor must attend court appearances or be at a transaction in person. Because it can take up to 24 months to settle an estate in some cases, it should be someone who’s nearby and can make the necessary appearances.

If you choose someone who lives out of town, make sure there are enough funds in the estate to handle the payment of any services the executor must hire to do a job they can’t do because of their location.

What Other Factors Should you Consider?

There isn’t a one-size-fits-all answer to what factors an executor should have, but you may want to ensure the candidate has the following:

• A flexible schedule – Like we said before, executing an estate is time-consuming and it has a lot of deadlines. Tax filing dates, court appearances, and completing important bank forms have deadlines or important dates the executor must meet. If you choose someone who’s already busy and can’t do their own daily tasks, it could complicate your estate matters.

• A willingness to do it – Don’t appoint someone as your executor without asking them. It’s a big responsibility and not everyone wants the job. Ask the person you intend to name if they are up for the task and don’t be offended if they decline.

• Good financial standing – You should consider people in your life who are in good financial standing for two reasons. First, you know they’ll have the ability to handle your estate since they’ve proven they are financially responsible with their own money. Second, they are less likely to go against your wishes and commit fraud, putting your beneficiaries at risk of a total loss.

• A stake in the estate – Choosing someone who stands to gain quite a bit from your estate is a good option too. If the executor will inherit a significant portion of the estate, he/she is very likely to handle the affairs in a timely manner and fairly.

• Good health (and young age) – You don’t have to choose someone who is younger than you or in perfect health, but it’s not a bad idea. If you name an executor of about the same age or who isn’t in perfect health, it’s a good idea to name an alternate. If the person you originally chose dies before you and/or can’t handle the job when you pass, a younger/healthier person may take over, but you must name them.

Choose your Executor Carefully

Choosing the right executor for your estate is a big job, just as being the executor is a demanding role. You may have to change your executor throughout your life depending on when you set up your estate and who you choose.

Try to keep an objective mind and choose the person best suited for the job as it’s not one to take lightly. Even if your estate seems straightforward and simple, it could take months to execute and include many court appearances and/or other official business the executor must handle.

Choose someone who is up for the job, understands the basics of finance, legal issues, and following through on your wishes. Don’t forget to revisit your estate and choices periodically because as we all know, life can change in the blink of an eye.