By M. Kotch

The term “executor” can sound daunting, but choosing one for your will need not be. So why do people select an executor for their will in the first place? An executor performs the following functions:
• Takes an accurate inventory of the deceased’s assets
• Deals with any estate taxes, debts and pays off creditors
• Distributes assets to beneficiaries in a fair and timely manner to help avoid will contests (which can delay proceedings for months or years)
• Takes care of the deceased’s business affairs (either personally or by hiring the right professional, for example)
• Follows the deceased’s wishes as expressed in a last will in all matters

Who can I choose as an executor?
You can choose a family member (who is most likely a beneficiary), or a dispassionate third party such as an attorney, accountant or bank. In some cases the two overlap, such as when your attorney is a close friend or relative.

What are the factors that should influence my selection?
• The size and value of your assets
• Number of heirs or beneficiaries
• Likelihood of jealous behavior or challenges to the estate by one or more heirs
• Cost consideration: how much you’re willing to pay for a third-party professional to act as an executor to your will

What qualities should I look for in an executor?
You should select someone of sound judgment, intelligence, whom you trust and whom you believe will rise above— or not encounter—any conflict of interest when distributing your assets. Though it may be difficult, think with your head and not your heart when choosing an executor.

What are the benefits of choosing a family member to act as executor?
Naming a family member is a good choice if you’re looking for compassionate flexibility: someone who would know how to adjust or modify distribution in a way that would respect your wishes in the case of changing circumstances. Another benefit to choosing a family member is that it will not cost your estate any extra professional fees, leaving more to be distributed among your beneficiaries. The downside to this is that family members can find themselves grieving and unprepared to deal with complex legal issues (such as probate court), giving into pressure brought on by other beneficiaries or acting in their own interest—and causing conflict among the remaining heirs.

What are the benefits of choosing an attorney?
Many experts suggest choosing an attorney to act as your will’s executor, particularly if your assets are vast and complicated (if you own your own business and have various investments, for example). Many consider their estate attorney (particularly if that same attorney drew up the will) because he or she will already be very knowledgeable about your estate and assets. The downside to hiring an attorney to act as executor is that legal fees that will be paid from your estate. Keep in mind that as an attorney’s billed hours add up, the fees that need to be paid from your estate will too.

What are the benefits to selecting a bank to act as executor?
Banks often act in a very neutral manner when it comes to executing a will; in fact many banks offer estate settlement services (meaning you will enjoy the expertise of many professionals, not just one individual). Another benefit is the structured nature of bank fees (unlike with an attorney who may bill your estate for additional hours at a rate of his or her choosing). The downside to choosing a bank as executor is that it leaves no room for any modifications to your will should circumstances change. The bank will follow all your wisher down to the last detail, and while that may sound fine now it may not later.
Here is an example, your will names two beneficiaries: A and B, who you wish to inherit your estate equally. You’ve left A all of your stock assets and B all of your real-estate assets. If the value of either asset diminishes (such as we’ve seen happen in the recent recession), your bank may not be able to adjust the distribution to fairly reflect the changing markets, and one heir may inherit far more than the other. In this case, the bank would be following your exact instructions—but not your wishes.

What are my options if I’m unhappy with an executor?
If you are unhappy with how the deceased’s estate is being managed or distributed, you have the option of contesting the will—but be prepared to go to court. The first thing you should do is hire an attorney that can present your case and legally explain your objections to how assets are being managed, whether it’s due to conflict of interest, jealousy or changes that—you feel—contradict the deceased’s wishes.

Why should I consider naming a “successor executor”?
You’ve already taken the time and effort to draw up your will and name an executor; by naming a successor executor you will ensure continuity and further protect your heirs in case something happens to the executor you’ve chosen.

Choosing an executor

Note: This article is for general information purposes only. Be sure to consult with your family and/or estate attorney before naming the executor that’s right for you.

This entry was posted on Thursday, September 3rd, 2009 at 5:08 pm and is filed under Support. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.