One of the most important decisions you’ll make when crafting your estate plan is whom to put in charge. Generally, anyone over the age of 18, even if they’re named in a will, can be named as the executor. That’s the person who makes sure every letter of your final plans is completely and thoroughly completed.
Wendy Hoey Sheinberg, partner at Albany, New York-based law firm Rivkin Radler, cautions against considering whose feelings will or won’t be hurt when picking a person to carry out your wishes. “The desire to avoid conflict or the appearance of favoritism can be the justification for selecting executors, trustees, or medical agents,” she says. “However, the best person is not always the oldest or the ‘favorite,’ but the person with the ability to do the job at hand.”
Above all, you want someone who is trustworthy, both legally and financially. “An executor will be managing your money, paying your debts, including taxes, and distributing your ashes, so you want someone who is ethical and who you know will follow the instructions in your will to the letter.”
Here are other factors to consider when selecting someone to settle your final affairs.
See it as a job.
Sheinberg stresses the importance of understanding you’re “hiring” someone, because the role of executor or trustee can be cumbersome and lengthy. On average, it takes 16 months to completely settle an estate, depending on the complexity and state laws.That means you should be prepared to allot a “salary” to compensate your executor for their time. You can choose a portion of the estate, a fee, a flat fee, or an hourly rate. However, if you fail to specify what your executor will be paid, they will be paid based on state law.
Count miles.
In most instances, executors need to spend time working with the court, a professional representative (an attorney or financial planner), and others. While that doesn’t preclude selecting an out-of-town executor, you should check with your state’s in-person requirements and choose someone able to be physically present (and compensated for their travel and lodging by the estate) as needed.Assess availability.
You should steer away from someone with a complicated family situation, protracted medical issues, or a demanding job, as they might not have the emotional or physical availability needed to settle your estate. Sheinberg says the same goes for choosing someone your age or older. She urges selecting an executor who is at least a decade younger than you.Emotional availability is equally important. Someone who thinks the topic of death is too morbid or who bursts into tears at the thought of death isn’t the right person for this job. Because an executor has to step in rather quickly after your death, they need to be prepared for the reality of the loss to best address the necessary financial and legal issues.
Experience matters.
Choosing a person that’s never bought or sold a house isn’t the right executor of an estate with multiple properties. Likewise, someone who can’t handle confrontation won’t be suited to deal with difficult beneficiaries or those who have been excluded from your final wishes.Make sure you select someone who can stand up to conflict and also maintain emotional boundaries to avoid drama or prolonged legal battles.
Twice might be as nice.
If your estate features assets that require the expertise of multiple people, you might want to name co-executors. For instance, maybe your primary executor is great at managing difficult personalities and is extremely responsible and organized but lacks tech-savvy. A digital co-executor can fill in the gaps and ensure your estate is settled according to your intentions.The Bottom Line.
Remember, an executor is not expected to do everything on their own. They can hire an attorney and/or other professionals to assist them, whether an estate goes to probate or not. And if you’re unsure who — or if — anyone in your personal circle is right for the job, you may decide that a professional is better suited as an executor or co-executor. By appointing a professional with experience in these matters, you can provide your family with peace of mind and someone to talk them through the steps, holding their hands every step of the way.IF YOU WANT ADVICE ON ANYTHING IN THIS ARTICLE OR IF YOU HAVE ANY QUESTIONS GIVE US A CALL TO DISCUSS YOUR SITUATION ON 866-860-3880.
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