Choosing an Executor

Choosing a good executor is an important decision that can significantly impact the administration of your estate. Some of the tasks are unknown to those who accept the responsibility of being an Executor.

Choose someone who you trust implicitly to manage your affairs and act in the best interest of your beneficiaries.  This person needs to be mentally strong.  The stress levels can exceed to a breaking point.  Look for someone who is organized and detail-oriented, as they will need to handle various tasks and paperwork.  Ideally, your executor should have some understanding of finances, estate planning, or legal matters. This will help them manage assets and navigate tax implications effectively. 

Select someone who has the time and willingness to dedicate to the role. Being an executor can be time-consuming, so it's essential they can commit.  If there are multiple beneficiaries, consider someone who can remain neutral and fair to avoid conflicts among family members or friends.  Your executor should be empathetic and able to handle the emotional aspects of the role, especially when dealing with grieving beneficiaries.

This next item is so important, but before naming someone as executor, have an open conversation about the responsibilities involved. Make sure they are willing to take on the role.  They must know everything about your estate.  What are your assets, where are your documents, how many bank accounts do you have?  This list can go on beyond your imagination.  This is critical.  It is a terrible idea for an individual to find out they are your executor while you are on your death bed.  At that point, it is almost too late. 

Please be mindful that as the executor, you will be responsible for taxes, which include filing the final tax return for the individual as well as filing tax returns on the estate and making sure if you have made any distributions to any beneficiary, at the end of the calendar year, the beneficiary will receive a K1 from the estate. Please consult a tax attorney for legal assistance if you are unsure of the responsibilities.   

If you don’t have a suitable individual in mind, you might consider hiring a professional executor, such as an attorney or a trust company, especially for complex estates.  If you’re unsure, investigate their previous experiences or ask for references to ensure they’re capable of handling the duties. 

It’s wise to name alternate executors in case your first choice is unable or unwilling to serve when the time comes.

How much will you pay your executor?  Check with your attorney and decide on fair compensation.  The percentages vary between 3% - 8% depending on the estate size.

Taking the time to choose the right executor can help ensure that your wishes are honored and that your estate is managed smoothly.

As always, please consult with your attorney.