An executor should be someone who's trustworthy, financially responsible, organized and respected by the beneficiaries. It helps if they live in the area, are likely to be in good health when the person passes away, and aren't overwhelmed with other responsibilities like caregiving or an overly demanding job.
Choose someone you trust.
They're already familiar with the family dynamics, and can more easily navigate trouble spots. A spouse can be your executor, unless you believe their grief, coupled with the heavy responsibilities, may be too big a burden. A close friend can also serve as an executor.
An executor of an estate is usually a family member, but it can also be a close friend, lawyer, accountant, financial institution, or financial advisor. In some cases, the deceased can name more than one executor, called co-executors.
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.
Lawyers can charge a wide range of fees, but it's pretty common for the cost to be anywhere between $100 - $500.
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.
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.
A will may designate an institution (generally a bank or trust company) as the executor. Or a probate court may assign them to be the executor if there is no valid will.
The Drawbacks of Being an Executor
Being an executor can be very time consuming, depending on the complexity of the estate. There can be seemingly endless phone calls to make, trips to the courthouse, and documents to mail.
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.
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.
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.
The best present you can give your executor is a set of documents that reflects your wishes. Take a look at your will or trust, the beneficiary forms for your retirement accounts, and any payable-on-death designations that you've added to bank or brokerage accounts.
There are a few methods and formats for writing a will: with the help of a lawyer, through an online service, or on your own. Writing a will with the help of an estate planning lawyer is the most traditional and common method.
The executor of a will can take everything only if they are the sole beneficiary of a decedent's estate and all of the decedent's debts have been paid.
Make sure that you pick the most competent person possible. Being an executor can be a tough, time-consuming job. In some families, the decision of who to pick as an executor is done based on tradition or culture. The oldest child or the oldest male is automatically made the executor.
If you're wondering whether an executor can override a beneficiary, you're asking the wrong question. An executor can't override what's in a Will. If you're a beneficiary mentioned in someone's Will, the executor can't cut you from the Will after the testator has died. You still have rights to the estate as written.
To ensure the executor remains honest over the course of administration, beneficiaries should make it a point to play an active role in administration. They should be familiar with the contents of the will, the nature of their inheritance, the duties of the executor and the steps of the administration process.
Consider Probate Litigation
Probate litigation typically occurs when beneficiaries believe the executor has violated their fiduciary duty, such as by mismanaging assets, failing to communicate, or acting against the interests of the estate. It can also happen when there is evidence that a will is invalid.
Changing the executor of an existing will should be undertaken with care. Always consider seeking legal guidance, especially if your changes are complex or if you need more clarification about the process. The key is to make sure that your will is still legally valid after making any amendments.
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" ...
If a court finds that an individual is suffering from dementia, is under the influence of drugs or alcohol, or is incapable of understanding the document being executed for some other reason, the court may invalidate the will on the grounds that the individual does not have testamentary capacity.