The job of settling your
estate’s
finances after you die belongs to your
executor,
sometimes called a personal representative. Before you decide whom to
name to this position, you should discuss the job with the person
you’re considering, to gauge their willingness to serve and to address
their questions and concerns.
Making a choice
Serving
as an executor can be time-consuming, detail-heavy work. It requires
someone responsible, intelligent, honest, and dedicated, preferably
with some understanding of financial matters. You should also name
alternate executors, who can assume the role if your first choice can’t
serve or declines to do so.
You
can — and people often do — name a family member or friend to the
position, and sometimes two or more executors to share the duties. You
could also choose a lawyer or an officer at a bank, but unless your
estate is complicated, it might not be worth the expense. Any executors
you name always have the option of seeking professional help from
lawyers or accountants and paying for the service out of your estate.
Whomever
you choose, keep in mind that states may place restrictions on
out-of-state executors, and that executors must be U.S. citizens.
Furthermore, you can’t name a minor child or a convicted felon as
executor of your estate.
Getting paid
Courts generally set a fee to be paid to executors. Friends
and family often turn down payment, but banks and lawyers
do charge for their services.
Naming an heir your
executor
Opinions are split on whether you should name a
beneficiary
of your will as your executor. While a beneficiary would
have a personal interest in handling your estate’s
financial affairs quickly and efficiently, the appointment
has the potential to create an appearance of conflict of
interest. Furthermore, if the person has a close personal
relationship with you, the emotional stress following your
death could make it difficult to focus on a complicated job.
