Estate Planning: Why Naming the Right Person as Executor is Vital
There are a few people you will need to identify when you begin estate planning: guardians for your children, the person whom you want to be responsible for making your medical decisions if you are unable to do so, and an executor for your will. An executor is responsible for administering a person’s estate upon their death. Their role is to carry out the expressed wishes of the deceased as stated in their will.
Photo: Mikhail Nilov
This executor’s role will be to first qualify with the court by bringing your will in and getting letters of administration and applying for an EIN for the estate. They will be responsible for gathering assets and liquidating them. These may include accounts that do not have “transfer on death” or “joint with survivor” designations, or a car, home and personal belongings that are not set to be given to an heir via a personal bequest (i.e., request that someone receives something specific such as ‘grandmother’s wedding ring’). During this time, they will notify creditors of passing and also pay certain bills. Once assets are gathered and payable debts are paid, they will ensure beneficiaries receive the property that was left to them, either tangible personal property that was named, or cash and other assets.
This individual is also responsible for handling court paperwork such as recording an inventory of assets and then depending on circumstances, an accounting of what has come in and out of the estate or other statement. They will also handle estate taxes and make sure personal taxes were paid. If it sounds like an unpleasant task, that’s because it can be. It really is a tremendous amount of work – and the court requires a lot of diligence. All expenses paid must be documented with receipts and canceled checks.
When choosing someone for this role, do not think of it as a popularity contest amongst your children and/or loved ones. Think of who is most capable of this level of diligence; who is detail and number-oriented. It also might make sense to name a specific beneficiary if they are getting everything in your will, as they might be able to file fewer items (this is why a real lawyer can help you in ways LegalZoom just can’t).
Photo: Vlada Karpovic
You can also select a law firm to be your executor. They will be required to disclose that they charge for this role, and that you have not hired them under undue influence. This is becoming more common practice as fewer people have children, and/or their close relations and friends age to the point it doesn’t make sense to have them act in this role.
Most people named as executioners of wills need some advice on managing the paperwork and many other tasks involved – even if a law firm isn’t specifically named in a will. Regardless of whom you choose, make sure there is a backup and place to name successors as the person capable of doing this job may change in time, or because of unforeseen circumstances. Revisit these names from time to time to make sure they are still accurate and up-to-date. But don’t let deciding who this person is overwhelm the process and slow you in getting it done. Think logically and not sentimentally on this one.
I love my brother, but this would not be a great task for him. (Note: He doesn’t read these articles, but he would agree even if he saw this!) And as always, if you have questions, please don’t hesitate to reach out and ask, the better informed you are, the faster decisions can be made.
