A personal representative or an executor of an estate acts as a fiduciary. Their duties include locating the will and filing it with the court, locating and safeguarding assets, communicating with beneficiaries and interested parties, settling debts, filing tax returns, distributing assets and closing the estate.
When estate planning, you need to choose a suitable party to assume this role. Below are three factors to consider:
Trustworthiness
An executor should have the highest level of integrity. You should trust that your chosen party will manage the estate competently, keep beneficiaries adequately informed, pay off debts and so forth.
Impartiality
The party you name should have the ability to prioritize the estate’s best interests and not show favoritism when dealing with beneficiaries. This is especially crucial when there are existing family disputes or tension.
If you want to name a beneficiary as the estate’s executor, choose someone you believe will act strictly by the numbers, even when the estate is not distributed equally. This should also be the case when you have a business and the beneficiary you want to choose has an interest in it. Consider the specifics of your estate to name an impartial executor.
Availability
Being an executor requires a time commitment. Probate can take months or longer if an estate is complex. Therefore, name someone who will be available to manage day-to-day tasks without feeling burdened. A loved one who frequently travels for work or has a demanding career may struggle to manage their schedule while fulfilling their fiduciary duties.
After determining a suitable person to serve as your estate’s executor, it’s vital to have a conversation with them. Help them understand your estate and their duties. Then, follow the right procedures to validate their appointment.