Choosing an executor — the person or institution you put in charge of administering your estate and carrying out your final wishes — is one of the most important decisions you’ll make when preparing a will.
Picking the right executor can help ensure the prompt, accurate distribution of your possessions with a minimum of family friction. Some of the duties required include:
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Filing court papers to start the probate process (this is generally required by law to determine the will’s validity).
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Taking an inventory of everything in the estate.
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Using your estate’s funds to pay bills, including taxes, funeral costs, etc.
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Handling details like terminating credit cards, and notifying banks and government agencies like Social Security and the post office of the death.
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Preparing and filing final income tax returns.
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Distributing assets to the beneficiaries named in the will.
Given all the responsibility, the ideal candidate should be someone who is honest, dependable, well-organized, good with paperwork and vigilant about meeting deadlines.
Who to Choose
Most people think first of naming a family member, especially a spouse or child, as executor. If, however, you don’t have an obvious family member to choose, you may want to ask a trusted friend, but be sure to choose someone in good health or younger than you who will likely be around after you’re gone.
Also keep in mind that if the person you choose needs help settling your estate, they can always call on an expert like an attorney or accountant to guide them through the process, with your estate picking up the cost.
If, however, you don’t have a friend or relative you feel comfortable with, you could name a third party executor like a bank, accountant or a professional who has experience dealing with estates.
Executor Fees
Most family members and close friends (especially if they are a beneficiary) serve for free, but if you opt for a third party executor, it will cost your estate. Executor fees typically run anywhere from one to five percent, depending on the size of the estate.
Get Approval
Whoever you choose to serve as your executor, be sure you get their approval first before naming him or her in your will. And once you’ve made your choice, go over your financial details in your will with that person, and let him or her know where you keep all your important documents and financial information. This will make it easier on them after you’re gone.
