Exector vs Trustee
How to Select the Right Executor or Trustee for Your Estate
Choosing the right Executor or Successor Trustee for your estate is one of the most important decisions you will make when creating an estate plan. Many people mistakenly believe they must name their eldest child or another close family member by default, but the decision should be carefully thought out based on several important criteria. Below, we explore how to select the best person to handle your estate.
Understanding the Roles: Executor vs. Successor Trustee
Before diving into the selection criteria, it's essential to understand the roles of these key figures in your estate plan:
Executor (Personal Representative)
• Named in a Last Will and Testament.
• Responsible for carrying out your wishes under the supervision of the probate court.
• Duties may include managing estate assets, paying debts and taxes, and distributing assets to beneficiaries.Successor Trustee
• Named in a Revocable Living Trust.
• Similar responsibilities to an Executor but without court oversight, allowing for a more private and streamlined administration process.
• Designed to help avoid the probate process altogether.
Choosing the Right Executor or Trustee for Your Estate
Choosing the right person to serve as your Executor or Trustee goes beyond family obligations. The right nominee must be someone you trust, who is organized and willing to navigate the complex responsibilities associated with estate administration.
Considerations for Naming Your Executor or Trustee
Family dynamics can become strained during estate administration. Ensuring you select a capable and impartial person, or even a professional third party, can help avoid unnecessary disputes among your beneficiaries.
Avoiding Family Conflicts
A professional third-party Executor or Trustee can bring neutrality and expertise to complex estates. If you anticipate family conflicts or have a large estate, this may be a worthwhile option.
Benefits of Professional Guidance
Key Factors to Consider When Selecting an Executor or Trustee
1. Trust and Reliability
• High Confidence: Choose someone you trust implicitly to make the right decisions and act in the best interests of your estate and its beneficiaries.
• Discretionary Decision-Making: Executors and Trustees often need to make judgment calls, such as deciding how to handle the sale of a family home, choosing real estate agents, negotiating sales terms, and more
Tip: Trustworthiness is key. If you doubt their motives or capabilities, look elsewhere.
2. Ability and Organization
• Competence: Your chosen person should be capable of handling legal, financial, and administrative tasks. Procrastination and poor record-keeping can lead to delays and disputes.
• Geographic Proximity: While modern technology reduces the need for physical proximity, having an Executor or Trustee who is nearby can sometimes make the process easier.
• Detail-Oriented: Estate administration involves numerous deadlines, documents, and financial records. Ensure your nominee can manage or has the support to manage these responsibilities effectively.
3. Relationship with Beneficiaries
• Family Dynamics: Consider how well your nominee gets along with your beneficiaries. Existing conflicts can lead to disputes and complications during the administration process.
• Conflict Prevention: Avoid appointing individuals who may have longstanding grievances with other family members involved in your estate.
Consideration: If family tensions are high, it may be wise to appoint a neutral third-party professional to serve as your Executor or Trustee.
Additional Considerations: Co-Executors and Third-Party Professionals
Co-Executors or Co-Trustees
• Pros: Provides checks and balances, and distributes the workload.
• Cons: Potential for disagreements and deadlock if the co-nominees cannot work together.
Professional Third-Party Executor or Trustee
• Pros: Brings expertise, neutrality, and experience to the role.
• Cons: Typically charges a fee based on a percentage of the estate's value, which may only be practical for larger estates.
Areas of Practice
Estate Planning
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