CHOOSING AN EXECUTOR: IT’S A JOB, NOT A GIFT
When I ask clients whom they would like to name as Executor of their Will, the answer is often their oldest child, a sibling, or someone to whom they are particularly close. Sometimes the decision is based more on family relationships and avoiding hurt feelings than on whether the person is actually suited for the job.
Being an Executor is not an honor that needs to be bestowed on someone. It is a responsibility, and depending on the estate, it can be a demanding one.
What Does an Executor Do?
An Executor is responsible for administering your estate after your death. This includes identifying and collecting assets, dealing with financial institutions, paying debts and taxes, keeping records, communicating with beneficiaries, and ultimately distributing the estate in accordance with your Will. The administration of your estate may also include filing petitions with the Surrogate’s Court.
Some estates are relatively straightforward, while others involve complicated assets, real estate, or family disagreements. Even a relatively simple estate can require a considerable amount of time and attention.
An Executor does not need to be an attorney, accountant, or financial expert. Professionals can assist with the legal, tax, and financial aspects of administering an estate. What matters is choosing someone who is organized, responsible, has good judgment, and is willing to devote the necessary time to the job.
Should You Name All of Your Children?
One of the issues that frequently comes up in estate planning is whether to name all of the children as co-Executors. Parents often feel that naming just one child will hurt the feelings of the others or suggest that they favor one child over another.
But naming all of your children is not necessarily the best decision, particularly if they do not get along or have difficulty making decisions together. If they cannot agree on minor matters now, requiring them to work together to administer an estate may create unnecessary complications, delays, and expense.
The decision should be based on who is best suited to handle the responsibility, not on treating everyone equally.
Who Should You Choose?
Consider whether the person you are thinking of naming is organized, handles financial matters responsibly, follows through on commitments, and can make decisions when necessary. It is also important to consider whether that person will be able to communicate effectively with the beneficiaries and handle disagreements that may arise.
The best choice may be one of your children, but it could just as easily be a sibling, another relative, a trusted friend, or a professional fiduciary. You should also name a successor Executor in case your first choice is unable or unwilling to serve.
Choosing an Executor is an important part of estate planning. The goal is not to reward someone or avoid hurt feelings. It is to select the person who is most capable of managing your affairs and carrying out your wishes after your death.