How to choose the right executor
<p>An executor is the person who carries out the instructions in your will and manages the allocation of property from your estate. Being an executor is a very important role, and choosing yours is one of the key aspects of preparing a will. Even carrying out seemingly simple instructions can become a protracted process, so it pays to consider the person for this role carefully. </p><p>You should also ask your proposed executor whether he/she is prepared to act as your executor.</p><p><strong>Who can act as an executor? </strong></p><p>Anyone older than 18 can be an executor and it is common for people named in your will such as spouses or children to be named as executors. It can be worthwhile to appoint two executors – a family member and a professional such as a lawyer or accountant. Using a professional can minimise any perceived personal bias in what can be a stressful and emotional time for the family.</p><p><strong>Responsibilities</strong></p><p>Some of the executor’s roles can become quite involved, such as deciding when to sell property to ensure an optimum value is realised, or resolving an ambiguity or disagreement among beneficiaries.</p><p><strong>Other key tasks include:</strong></p><p>- Compiling an inventory of assets and if necessary obtaining valuations. This can be a time-consuming process requiring research and paperwork</p><p>- Filing the necessary paperwork with relevant authorities</p><p>- Collecting money due, paying bills, and finalising tax returns and other costs</p><p>- Managing the closure of bank accounts, utilities etc.</p><p>- Closing the estate and distributing assets to the beneficiaries. This can be a complex process if beneficiaries don’t feel they’ve been treated fairly. It is up to the executor to explain the asset allocation where required, which may help avoid the will from being contested, which can prolong distribution and add further legal costs.</p><p><strong>Key qualities of a good executor</strong></p><p>Above all, your executor must be someone you can trust. They should be able to manage paperwork and have a reasonable grasp of legal, tax and financial processes. It will also be valuable for them to be able to manage any disagreements or conflicts among the beneficiaries should they arise. </p><p><strong>Costs</strong></p><p>Family and close associates may perform this role for free, however keep in mind the potential responsibility and time involved. If you choose a professional third party they will charge a fee that can be paid out of estate funds. If you don’t have anyone suitable to choose as an executor it might be worth considering a Public Trustee, who can act for a fee.</p><p><strong>Summary</strong></p><p>While many people assume the role of executor to be straightforward, the possible demands of the role need to be taken into consideration to ensure you choose the right person.</p><p><em><span>This article is for general information only and cannot be relied on as legal advice. You should seek formal legal advice on your specific circumstances.</span></em></p>
