Choosing an Executor

by Roger Ellison, CFP

One of the most important decisions to be made when having a will written is the selection of the executor who is to carry out the instructions of the will. The person or entity chosen has significant responsibilities, so selection requires careful thought and action.

From a legal perspective, an executor must be a legally competent adult, must not have been convicted of a felony, and may have to post a bond, though the posting of a bond is frequently waived by the will. But from a personal and practical perspective, the requirements are much greater:

• Does the executor have the skills to handle the business, financial and administrative responsibilities of gathering the assets, payment of debts and expenses, and distributing the assets during what is likely to be a time of significant stress?
• Reviewing records
• Determining which assets are subject to probate and taking custody of those assets
• Valuing the property
• Filing an inventory listing
• Determine debts and expenses and resolving claims
• Paying executor fees (if any) and attorney fees
• Filing death tax and other tax returns
• Liquidating assets
• Proper distribution to beneficiaries (family, friends, charities)
• Does the executor have knowledge of the deceased’s business, personal matters and family situation?
• Does the executor have the time and energy to do the job, and willingness to carry out the responsibilities?
• Is there likely to be a conflict of interest? Do you trust the executor?

Many times, the first thought for an executor is a family member. In light of the questions and responsibilities above, and the particular family situation, a family member might not be the best choice. In fact, in many situations, an individual might not be the best executor, and a corporate fiduciary could be a better choice. If the estate is large, complex or might present some particular family problems, a combination of corporate fiduciary and an individual serving as coexecutors might have considerable merit. With their roles properly defined, such a situation might offer an appropriate arrangement of checks and balances. Regardless of the choices, however, it is always wise to select a successor executor in the event the first choice is unable, unwilling or unavailable to carry out the responsibilities. Get their approval in advance of preparing the will.

In the final analysis, chose an executor you trust to be honest, loyal and competent to abide by fiduciary principles and who will exercise reasonable care, skill, diligence, and prudence.

Roger Ellison, Vice President of Planned Giving, at the West Texas Rehabilitation Center Foundation, is a Certified Financial Planner who provides gift and estate planning services on a no cost, no obligation basis. He may be reached at 325-223-6309 or roger@rogerellison.com