Many people believe that their final wishes will be carried out by clearly stating them in their will. This false feeling of contentment can lead to multiple problems after death. Care must be taken when selecting an executor to handle your affairs and abide by the terms set out in the will. Whether you appoint one person or a trust company, the important thing is to be realistic about what you want to achieve, and to appoint those you trust.

The role of an executor is to settle an estate quickly, efficiently and at the lowest cost possible. There are many responsibilities that an executor faces: arranging for the probate of the will, assembling and inventorying estate assets, protecting and managing the assets, notifying creditors and handling claims, filing tax returns and paying taxes. Once this has been completed, the executor then distributes the full amount due to the beneficiaries.

While you can appoint anyone you want as an executor, the named executor has the ability to renounce or refuse to assume the role upon your death. It is therefore prudent for you to name an alternative executor or executors.

Quite often, a family member is chosen as the executor. In most cases, the directions of the will are followed as outlined. There are a few examples of when the executor mismanaged the funds in the estate or did not have the needed experience and expertise. Careful thought needs to be given to this decision.

When appointing your executor, you do not always have to choose a relative or an acquaintance. There are several estate and trust professionals available to choose from. They can carry out the settlement and administration of your estate, including such things as custody, asset protection, tax preparation, and more. There mostly likely will be added costs for these services, but it could be worth the peace of mind.

It is also important to re-evaluate your appointed executor periodically. An executor who was appointed 10 years ago may not be appropriate anymore.

Your executor plays a big part in the distribution of your estate. Choosing the right executor is something that should be given a lot of thought. Your final wishes being carried out may depend on the decision that you make.
  

December 1, 2009