Choosing the Executor
1. Why is choosing an executor so important?
One of the most important decisions that you will make is the choosing the executor. The most important thing is that you pick someone who is financially responsible, stable, and trustworthy. The law requires an executor because someone must be responsible for collecting the assets of the estate, protecting the estate property, preparing an inventory of the property, paying valid claims against the estate (including taxes), representing the estate in claims against others, and, finally, distributing the estate property to the beneficiaries. These last two functions may require liquidating assets; that is, selling items like stocks, bonds, even furniture or a car to have enough cash to pay taxes, creditors or beneficiaries.
2. What are the attributes that I should look for in an executor?
It is important to be sure the executor is capable of doing the job. The quality most desirable in an executor is perseverance in dealing with bills especially the hospital, Medicare, ambulance and doctor charges incurred in a last illness. These often require a lot of paperwork, and payment first, then reimbursement from insurance companies. You should pick someone who has the time and inclination to deal with bureaucrats and forms. Moreover, the executor may also have to deal with relatives who may have no patience. These relatives will constantly hound the executor why is it taking so long to receive their inheritance. The executor will probably hire a CPA or lawyer to handle the tax returns. In most estates, no significant legal expertise is required to serve as executor; the issues are all financial. The executor will generally work with a lawyer to probate the will. Whomever you choose, be sure to provide in your will for a replacement executor in case the original executor dies or is unwilling to act. Otherwise the court will have to choose someone.
3. What are the responsibilities of the executor?
An executor has many responsibilities;
- Guiding the will through probate to legal acceptance of its validity, including defending it against will contests.
- Collecting the assets of the dead person.
- Transferring legacies and gifts to the beneficiaries.
- Evaluating and paying claims against the estate, especially bills and taxes.
- Raising money to pay these claims, often by selling estate assets.
- Preparing and filing a budget and accounting for the court.
