Avoid Common Mistakes: How to Choose the Right Executor for Your Estate
The executor, a pivotal figure in the management of your estate, holds the key to ensuring your wishes and intentions are faithfully carried out. Their role, when you are no longer present, is of utmost importance. A well-chosen executor can streamline the process, while a poor choice can lead to delays, disputes, higher costs, and added stress for your grieving loved ones. In this post, you’ll learn about the common pitfalls of choosing an executor and ways to avoid them.
What Does an Executor Do?
But before we dive into the mistakes to avoid, you must first understand the roles and responsibilities of an estate executor. These include:
File your Will with the Probate Court
Your executor initiates the legal process of administrating the estate by submitting your Will to the appropriate probate court. In the absence of a Will, the probate court will follow our state’s intestacy laws to appoint an executor and distribute your assets.
Identify and Inventory Assets
Your executor must locate and take inventory of the assets in your estate, including bank accounts, investments, real estate properties, etc. The executor is also responsible for having these assets appraised to determine their value.
Manage Debts and Expenses
Your executor is responsible for dealing with debts and liabilities you leave behind upon your death. Any credit card bills, loans, medical expenses, or other obligations must be settled by your executor using your estate’s assets. Failure to do so could result in legal action against the estate, leading to delays in asset distribution to beneficiaries. They may also need to file your final income tax returns and pay your estate or inheritance taxes, if any.
Distribute Assets to Beneficiaries
Once all debts have been paid and taxes settled, your executor distributes the remaining assets to your beneficiaries following the terms of your Will. To do this, your executor may need to liquidate or transfer the ownership of certain assets.
Handling Paperwork and Communications
To accomplish their complex tasks, your executor must keep detailed records of your estate's legal and financial paperwork. They are also responsible for contacting your beneficiaries and keeping them updated on the estate’s management.
Mistakes to Avoid When Choosing Your Executor
Below are the most common mistakes people make when choosing an executor:
1. Choosing Based Solely on Family Ties
It’s understandable if your first choice to be executor is your spouse, children, or other family members because these are often the people you trust the most. But basing your choice solely on your relationship is a big mistake. Why? For one, your spouse or child may lack the skills needed to handle financial or legal matters. Second, emotional ties may cloud judgment and create family conflicts.
How to Avoid: Choose someone with the necessary skills, such as financial management, legal knowledge, and organizational abilities, and the ability to remain impartial, even if it means looking outside your immediate family.
2. Assigning Without Discussion
It’s a common mistake to assign an executor without discussing it with them first. Occasionally, the chosen executor is unwilling or incapable to take on the role. If your chosen executor declines the role upon your death, a costly and time-consuming court intervention may be needed. Without discussing that you are appointing them, your executor will be unprepared and may get overwhelmed with their role.
How to Avoid: Have a candid conversation with your chosen executor about the role and its responsibilities before finalizing your decision.
3. Not Opting for Professional Options
This is a common mistake for large estates or those with complex assets. A family member or friend lacks the experience and expertise to handle intricate legal and financial matters effectively. Having them handle your estate may lead to mistakes and, consequently, disputes, unnecessary expenses, and delays.
How to Avoid: Consider appointing a corporate executor, such as a bank or trust company, or a professional, such as an attorney. These entities have the experience and expertise to handle complex estates and can provide impartial and efficient administration.
4. Not Naming a Backup
Most people fail to account for the unpredictability of life. When you plan your estate, you must have a Plan B or even a Plan C. The person you chose may not be able or willing to serve when the time comes. When this happens, the court may appoint an executor, delaying the probate process. An executor not of your own choosing may not administer your estate according to your preferences.
How to Avoid: Always designate at least one alternate executor in your Will.
5. Underestimating the Time Commitment
Only a few consider that being an executor can be a time-consuming job, especially with large or complex estates. Appointing an executor with a busy life or significant obligations may mean they don’t have the time to tackle their executor responsibilities. If this is the case, they may neglect their estate administration tasks and cause delays. This could create additional stress for both the executor and everyone involved.
How to Avoid: Select someone who has the availability and willingness to dedicate the necessary time and effort to the role.
Choose the Right Executor for Your Estate with the Help of Rilus Law
When it comes to choosing the right executor, avoid common mistakes by thinking beyond family ties, discussing the role openly, and considering professional options if needed. With careful planning and the right choice, you can provide peace of mind for yourself and your loved ones. If you’re unsure where to begin, we’re here with expert support during your executor selection process. Whether you’re just starting a plan or revisiting an old one, choose Rilus Law to guide you toward estate planning success!