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Whom Should I Select as

an Executor for My Estate?

By Elizabeth Lewin

          Selecting an executor for your estate can be a difficult decision, but it is an important one, because your choice affects your family on so many levels, from financial to emotional. Not only must the executor be familiar with probate issues, he or she must be impartial and have the best interests of all the beneficiaries at heart, as well as being well-organized and a diplomat. Not an easy task! The executor does not have to be a legal eagle, but he or she needs to be aware that probating an estate takes time and requires an eye for detail. If your estate is small and you were well-organized, probate can be straightforward. But, if the estate has a wide variety of assets and feuding beneficiaries, it can be time-consuming and difficult.

          Executor’s duties vary from state to state.  Basically, the executor has to file the will with the probate court, take possession of the decedent’s property, file an inventory within a prescribed time (usually two to three months after death), obtain cash to pay for estate administration, pay claims against the estate, file tax returns (if required), file final accounting and distribute assets to beneficiaries. 

          Choosing a professional executor (lawyers, bank trust officers, accountants) has certain disadvantages. They may not have the best interest of the beneficiaries in mind and can be insensitive to family needs. For instance, Valerie and Eric had to deal with an executor who didn’t believe in early distributions. They had to constantly prod him to get their grandfather’s estate settled. There was little incentive for him to speed the probate process along, once the required filings were done.  But such a delay can waste assets and defer distributions. There can also be a problem over fees paid.  Fees for the executor and other professionals, (attorney, accountant or appraisers), chosen by the executor are paid out of estate assets.  A lawyer or accountant can double-dip, charging executor’s fees  plus professional fees.  Kevin O’Grady, Probate Judge in Westport, Connecticut, says, “There is a conflict of interest when the lawyer who writes the will names himself as executor.”  This happened to Amy, who was sent by her divorce lawyer to the estate lawyer in the same office, who named himself executor.

          Naming a family member or close friend as executor or co-executor is often the best choice. “It’s a rare day when I would say not to do this,” says Judge O’Grady. A friendly executor can ask heirs, if they are knowledgeable, to comment on interim investment decisions and the disposal of personal property. This sort of close consultation is rarely done by professional executors. When a lawyer is needed, the family executor can always negotiate a fee. A lawyer might be retained just to help the executor get started-—explaining the process, the forms and the schedule for filing. This could prevent costly mistakes.  Some lawyers take a fee that is a percentage of the estate; others bill an hourly rate.  

          Ellen and Nancy were named co-executors, with their stepmother, of their father’s estate. “It was cumbersome, since all filings had to be signed by each of us, “ says Ellen, “but Express Mail service made it doable and it kept peace in the family.”  If you suspect there will be feuding among your heirs, Judge O’Grady suggests naming a professional executor and a family friend to serve as co-executors. They are disinterested parties and don’t carry the emotional baggage that your children have.

         Consult the person you want to be your executor before you write your will, and make sure that he or she is comfortable in the role. If you have no will, the Probate Court will name an administrator to handle the details—and that person knows less about you and your family than the man in the moon.  The bottom line: write a will, name a family member at least as co-executor, and keep more of your assets in the family.

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Financial planner Elizabeth Lewin is the co-author of the recently published book, “Family Finance” (DearbornTrade).  She is also the author of “Your Personal Financial Fitness Program,”  “Financial Fitness for Living Together,” and “Kiss the Rat Race Good-bye.”  Elizabeth has written articles for Redbook and Reader’s Digest’s New Choices, among other magazines, and she has appeared on numerous national radio and television talk shows. She is a member of the Editorial Board of MAKING BREAD Magazine.

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