How do you choose the right individual to be the Executor of your Estate? Good morning everyone and welcome back to Finance Friday. We’re continuing with our monthly topic: Estate Planning. Arguably the most important person appointed to your last will and testament is the Executor. Choosing this person can be difficult. While most people end up choosing a family member, the decision is not always the best. Here are 3 things to consider:
- Complexity of the Estate – Complexity can relate to different things from substantial wealth and tax issues to blended families and fighting siblings. You can hire professional executors and Corporate Trustees to manage your estate. These professionals may have more expertise than a family member and should remain neutral while acting on the Estate’s instructions.
- Family Dynamics – One way to keep the cost of probate down is by assigning a family member or a close friend. When choosing a family member, most people tend to select their siblings or children, however, you should choose someone that has good organization, judgement and emotional steadiness.
- Location – Maybe the best person suited to be your executor is in a different state or worse, different country. This wouldn’t stop a person necessarily, but it would make it more difficult. Before selecting a potential executor, check to see what their feelings are about managing the estate while living elsewhere. Would they be open to moving temporarily or is the Estate small enough that it can be done overseas?
Remember, an Executor is a Fiduciary and are legally responsible for acting in the best interest of your estate. Choosing the right person will be better in the long run.
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Thank you again and have a wonderful weekend!!