How To Choose Your Executor or Personal Representative
June 14, 2010
Serving as someone’s executor or personal representative under a Last Will and Testament can be a HUGE job, and may not be right for the faint of heart. Although nomination is commonly considered an honor, there is a lot of work involved, and an executor must have a great capacity for organization, attention to detail, the ability to meet deadlines, and more. You may be tempted to name your favorite sibling or eldest child just to keep from hurting any feelings, but your family and heirs will not be well served if you choose your executor based on emotion rather than ability.
Keeping this in mind, here are 4 things to consider when choosing your executor or personal representative:
- Your executor should be trustworthy. Your executor will be privy to all of your financial secrets: reviewing estate assets, determining your liabilities and paying off creditors, settling outstanding debts, and making distributions to heirs. Chances are you don’t want all that information spread throughout the family or community.
- Your executor should be organized. The person you choose will be in charge of a number of detailed tasks, both large and small. He or she will be making lists of assets, working with your attorney to meet court deadlines, making timely distributions for estate taxes, and more. Missing or being late for one of these many steps can draw out the entire process, costing your heirs both time and money.
- Your executor should be financially savvy. One of the responsibilities of executor is to keep the estate viable (making sure the mortgage and fees continue to be paid) during the probate process. If you have investment accounts you’ll want to ensure they won’t languish and lose their value before they can be distributed to your heirs.
- Your executor should have heart. Although probate is a can be a difficult and detailed process, it is at its core about the people you love. Your executor should have the ability to be caring and compassionate during this emotional time.
If you don’t know anybody you would trust with all of these responsibilities don’t lose faith, there are other options. For example, you can choose a bank or financial institution as your executor, or you can ask your estate planning attorney to recommend a professional fiduciary. The goal is to find someone who will serve you well and work with your attorney to ensure a smooth probate for all involved. Another approach is to create and fund a trust, where the duties after your demise would be handled by your Successor Trustee. However, many of the same concerns that apply to your Executor (if you only have a Will) also apply to your Trustee. Talk to your attorney about choices and the difference between administering a probate estate created by a Last Will and Testament, on the one hand, versus a trust estate created by a Trust, on the other. You may find the talk very helpful.
Organize Your Estate for Your Successor Trustee
March 25, 2009
If you’ve ever been unlucky enough to have to execute a deceased loved one’s estate, then you know what an overwhelming job it can be. Think about your own method of organization. Do you keep all of your financial papers in one place? Do you keep your birth and marriage certificates nearby and easily accessible? What about insurance forms, information about retirement plans and beneficiaries, cemetery plots? Are all of those things located with your estate planning documents? This isn’t even getting into the more personal areas such as club memberships and online accounts and passwords.
Organizing your estate for your successor trustees can be a huge task, but one well worth the effort. It will not only make it easier on them, it can also make life a lot easier on you. Here’s how to do it: Use a large binder or collection of binders, and keep them clearly labeled, both inside and out. You can use the following bullet-points as a guideline for tabbed sections (and if you aren’t sure in which section something belongs, don’t be afraid to make copies for both, with a note as to where the original is located):
- Instructions and letter to trustee: Contact information for your Estate Planning attorney and trustees, instructions on how to begin the process.
- Minor children: Information about your minor children, nearby guardians or relatives, medical and health insurance information.
- Personal Information: Birth and marriage certificates, passports, family, friends and contact people.
- Estate Planning Documents: Trust, Wills, any amendments, personal property memorandum.
- Employment/Business Information: Contact information for supervisors, client information if you are a small business owner.
- Health Care: Advanced Health Care Directive, HIPAA, emergency contact information, phone numbers for doctors, health insurance particulars.
- Financial Powers of Attorney
- Real Estate and Tangible Property: Deed to your home, mortgage information, homeowners and fire insurance, vehicle records, artwork and antiques.
- Bank Accounts and Investments: Account numbers and locations, contact information.
- Monthly Expenses and Bills: A copy of one monthly statement for each.
- Taxes
- Retirement Accounts/Government Benefits: Account numbers, beneficiary information.
- Life Insurance: Account numbers, beneficiary information, premium payment information.
- Memorial and Burial/Cremation: Preferences, pre-paid arrangements, phone numbers.
- Memberships/Secured Accounts/Passwords
Once you are organized, keep your information in an accessible place and make your executor aware of the location. Keeping as much information as possible in a computer file is also a good idea. Then you can easily re-print a page when something changes. Don’t forget to back up your data onto a CD ROM disk or USB Drive, and keep that somewhere else for safekeeping.
Organize now to make things easier for yourself and your loved ones. You will enjoy the benefits now, and they will thank you later.
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