Naming an executor requires careful consideration.
You know you need an estate plan.
You also know you need someone to serve as an executor.
It is a big role.
How should you go about making this decision?
According to a recent MoneySense article titled “Should the sole recipient of an estate be the executor too?,” the person you choose must be responsible and knowledgeable.
Paperwork should not overwhelm this individual.
If it does, select someone else.
The role requires a lot of managing money and filling out paperwork.
The person you choose should be younger and certainly healthier than you are.
You will need this individual to outlive you.
The responsibilities of an executor begin when you die.
Settling an estate takes time.
A lot of time.
The person you choose should be able to have the bandwidth to fulfill the responsibilities of his or her role.
Often retirement affords this luxury.
Before you name an individual, make sure he or she understands the commitment being made.
Settling and estate can take longer than year and requires much involvement.
Could you use a bank?
However, this option could be more expensive if your estate is rather straight forward.
An attorney may also serve, but many are too busy to accept such a role.
A family member is often a good choice, if he or she is willing AND able.
You could also name co-executors by selecting two adult children.
This could complicate matters, as they will need to coordinate their schedules to perform the duties together.
Whoever you choose, be sure to run them through the filters provided above and ask whether they would be willing.
Choosing an executor should not be a decision taken lightly.
Reference: MoneySense (March 27, 2019) “Should the sole recipient of an estate be the executor too?”