When planning your estate, selecting an executor is a crucial decision. This person will manage your affairs after you pass, so it is essential to choose wisely.
Essential qualities of an effective executor
After you pass, your chosen executor will ensure the accounting of all the assets in your will. They will also transfer these assets to your beneficiaries. Therefore, they ideally should be:
- Trustworthy. Your executor will manage sensitive information and financial matters, so integrity is essential.
- Well-organized. Managing an estate involves tasks and deadlines. An organized person will ensure that nothing falls through the cracks.
- Effective communicators. Your executor will need to interact with beneficiaries, lawyers and financial institutions. Clear communication is vital.
- Financially literate. While they do not need to be a financial expert, basic money management skills are beneficial.
- Emotionally stable. Dealing with an estate can be stressful. Choose someone who can handle pressure and make sound decisions.
- Available and accessible. The role can be time-consuming, so select someone who is able to dedicate the necessary hours. They should also be easy to contact.
Tips for choosing the right executor
Now that you know what qualities to look for, below are tips you may consider in choosing the right executor for your estate:
- Consider family dynamics. If you have multiple children, naming one as executor could cause tension. Sometimes, an impartial third party may be the best choice.
- Assess their willingness. It may be best not to assume that someone wants the role. Instead, you may want to discuss your wishes and their comfort level openly.
- Think about location. While not a deal-breaker, having an executor who lives nearby can simplify the process.
- Consider age and health. You may want to choose someone likely to outlive you and be in good health to oversee the responsibilities.
- Name alternates. It may be wise to name one or two backup executors in case your first choice is unable or unwilling to serve.
- Review periodically. Life circumstances change. You may want to revisit your choice every few years to ensure it is still appropriate and aligned with your estate planning goals.
Being an executor is a significant responsibility. Consider consulting an attorney when choosing one. They may guide you through the process and ensure that you select an executor an efficient and trustworthy executor.
