Why Heirs Shouldn't Be Executors

Monday, 27 April 2009

One of the most important provisions of a will is that which appoints an Executor for the estate.  It is the Executor’s responsibility to carry out the provisions of the will and settle the estate.

Many wills name a spouse or member of the family as Executor, but the complexity of our society is making the corporate Executor increasingly popular.  The Executor must do the following:

• Take possession of, protect and conserve all property
• Collect all debts, claims and notes due
• Determine identity, location and the degree of all possible heirs
• Handle all business interests and settle all affairs
• Review debts and pay all obligations
• File state and federal estate returns and pay taxes

A substantial number of legal documents must be filed, notices published and tax returns prepared.  There will also be appraisals and a significant amount of accounting to be performed.  These tasks are difficult and time consuming for the novice and frequently heart rending for the spouse or child.

Not only can it be emotionally difficult for a family member to execute the estate, it also has the very real risk of dividing the family.  Sibling disputes are common when one of the children is assigned the task of distributing the estate.

Local laws limit executor fees, whether paid to an individual or a trust company, but a professional Executor’s efficient management has often been known to more than offset the fees.

Your attorney will be consulted by the Executor to assist in the legal matters of settling the estate, and you should review the advisability of naming a corporate trustee as either Executor or as an alternate Executor if an individual is incapable or unwilling to serve.

Choosing your executor is a delicate task.  We encourage you to come and meet with one of our qualified advisors.  They will be able to discuss with you the approach you should take to select your Executor.

Brock and Associates, LLC is a financial planning firm specializing in retirement, estate, and tax planning.

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