Both terms are also sometimes referred to as a “personal representative.” However, an executor is generally named directly in your will, while an administrator may be appointed by a probate court in the event that you have no will or if the appointed executor declines the responsibility.
People often name their spouse or an adult child as executor of their estate, but sometimes a professional such as an attorney or accountant is named. An executor should not have a criminal record or be under 18 years old, and many courts will not allow someone with poor credit or liens against them to be in the role.
Most people choose a relative or close friend as executor. If your estate is large or complicated you may wish to appoint a trust company to act as your executor. As a last resort, if you do not have anyone available to act as your executor you can appoint the Public Trustee.
An executor can also be someone you've named as a beneficiary in your will. The role of an executor is a serious one which carries a lot of responsibility. When choosing your executor or executors you need to bear this in mind. It should be someone you trust to carry out this work.
As executor, it is your responsibility to locate the original will and submit it for probate. It is a good idea to get it now and make sure you are keeping it in a safe place.
People usually designate one person to serve as the executor of their will, but it is also possible to designate two or more co-executors. Most lawyers advise that one executor is best, as it avoids potential disputes, but there are situations where it may make sense to appoint co-executors.
While in some situations it is appropriate for a sibling or other family member to serve as trustee, in many cases, particularly with a larger trust, naming a family member is not the best decision, for several reasons. First, clients fail to appreciate the amount of work involved in being a good trustee.
California has one of the most detailed schemes, which provides that the executor fee is four percent of the first $100,000 of the estate, three percent of the next $100,000, two percent of the next $800,000, one percent on the next $9 million, one-half of one percent on the next $15 million, and a “reasonable amount" ...
While California law grants executors considerable authority in managing estate assets, the powers of an executor of a will are limited by the fiduciary duties owed to the estate and its beneficiaries. This means that executors are legally required to act in the best interests of the estate and its beneficiaries.
Generally speaking, the executor of a will cannot take everything simply based on their status as executor. Executors are bound by the terms of the will and must distribute assets as the will directs. This means that executors cannot ignore the asset distribution in the will and take everything for themselves.
Appointing two executors in a will can lighten the load as both people will have the authority to act for the deceased. If each executor has a different skill set, they can each take on the duties they are best suited for, ensuring that all tasks are completed properly.
Traditionally, many people name their oldest adult child to be the executor of their estate – but this is done out of a sense of propriety, not necessarily rationally.
While executors have discretion in some areas, your core decision-making is bounded by: The deceased's will. You must follow their distribution wishes rather than diverging based on your own judgments.
Serving as an executor or trustee is a significant responsibility that requires careful consideration. While there are benefits, such as personal satisfaction and potential compensation, there are also drawbacks, including time commitment, emotional strain, and potential legal liability.
As noted in the previous section, an executor cannot change a will. This means the beneficiaries who are named in a will are there to stay. Put simply, they cannot be removed, no matter how difficult or belligerent they are being with the executor.
Some of the most important documents include a petition for probate, notice to creditors and various life insurance forms. A financial advisor can also help you with estate planning and management.
No, they're obligated to follow the will's directives. Beneficiaries chosen by the decedent remain unchanged. They can only be removed if parts of the will are invalidated, typically through a successful legal challenge. Executors must respect and implement the original wishes of the testator.
Consider People in Good Financial Standing
Your choice of executor needs to have suitable personal finances of his own. People with many creditors and liens against them, individuals with no credit history and those who have declared bankruptcy are not good choices, since they often can't get bonded.
Lawyers can charge a wide range of fees, but it's pretty common for the cost to be anywhere between $100 - $500.
However, an executor cannot withhold money simply at their own discretion or for personal reasons. Executors have a fiduciary duty to act in the best interests of the estate and its beneficiaries, so any withholding must be justifiable and transparent.