HOW TO CHOOSE THE EXECUTOR OF YOUR ESTATE

HOW TO CHOOSE THE EXECUTOR OF YOUR ESTATE
Never a Popularity Contest

Who Will Implement My Estate Plan Upon My Disability or Death?

Choosing the executor of your estate is the single most important decision you will make to minimize future unknowns, provide peace-of-mind for your family and create an orderly transition of assets in the event of your death or disability.

Your choice of capable people to administer your estate plan is critical. The individual or entity chosen will shoulder significant responsibilities in managing your estate plan directives.

Competency, harmony and willingness to serve are the operative bywords in selecting the people or entities that will carry out your wishes at a time you are no longer able to do so. Any of these managing “slots” may be filled by one or more individuals or a corporate entity such as a bank – or some combination of all three.

Competency

Your choice of an executor is not in the category of a popularity contest, nor the ranking of a family member. Choices should never be made simply because an individual is a close friend or your oldest child.  Your selection should reflect the individual’s capabilities and certainly never on the basis of hurting someone’s feelings.

Harmony

In some instances, it may be prudent to appoint two or more adults as joint executors. That said, there are at least a few circumstances to carefully consider. For example:

• Appointing two siblings with an adversarial relationship creates the potential for an explosive and protracted delay in settling your estate according to your wishes.
• Likewise, choosing two or more executors who have no history of successfully working together may be a recipe for a confrontational atmosphere that may lead to less than efficient management of your affairs.

If there is a need for co-executors and no clear choices of compatible individuals to fulfill those roles, you may appoint an entity such as a bank, trust company or a law firm that offers executor services.

Willingness

This element is closely tied to the above discussion of Competency. Assuming the executor candidate is competent, it is important to determine that person’s readiness to assume the required duties of the role he or she is expected to play. Depending on the complexity of the estate, it may be a far more overwhelming task than expected. Additionally, there are potential legal liabilities for negligent handling of the estate.

Of course, expertise does not have to be personally demonstrated in all aspects of “a life in the day of an executor”, as there is plenty of help available from a capable team of accounting, legal and investment professionals.

Of course, when you seek  to name an executor, you are urged to seek counsel and direction from competent accounting and legal professionals for guidance. This article is meant as a general discussion document and not to be construed as providing legal, accounting or tax advice.

Of course, at Pearson & Co. our work as accountants is to maximize your estate value and minimize your tax bite. In serving you, we can also introduce you to skilled estate planning professionals. If we can help with a referral … just ask.