Have you been asked to be an executor of someone’s will, or do you think perhaps you will be? While it is a sign of trust and, in many ways, an honor to be asked, before you say yes, you might want to read what that responsibility entails. Then decide.
Let’s look at being an executor from a pros-and-cons perspective, starting with the pros.
1. As I mentioned above, it is an honor and a sign of trust. The individual is choosing you because they feel you will carry out their final wishes. Maybe it is your parent, a sibling, or a close friend who is asking. It does feel good to be trusted.
2. You will have authority and control as you will manage the estate process, including paying debts, distributing assets, and making sure everything follows what is in the will and is according to the law.
3. There is a possibility that you will be compensated for your efforts. That depends on state law and the will itself. In some states, it is a percentage, in others, an hourly or reasonable fee. This can be important because sometimes executors spend a great deal of time fulfilling their responsibilities.
4. You don’t have to do it alone. You’re allowed to hire attorneys, accountants, and financial professionals. This is good to know if the estate is complicated or the assets are significant. You can hire help
5. You ensure things are kept orderly, which prevents confusion, delays, and ideally family disputes. If you are an organized person by nature, this will play to your strength.
And now for the “not so great things about being an executor.”
1. It can take a big chunk of your time. Some estate administrations can take months, even years, especially if probate is involved or assets are complex. So, it’s not always a “slam-dunk” kind of event.
2. In most cases, the executor is a loved one or close friend, so that it can be emotionally stressful. You are probably grieving the loss, but need to press on with the executor’s duties. You might even have to deal with unhappy heirs who have unrealistic expectations. Things can get tense.
3. You have a fiduciary duty. This means that if you make mistakes, paying the wrong debts first or missing deadlines can create a personal liability for you. This goes back to being organized; if you’re not very organized, this could be a big problem for you.
4. Things can get ugly. We have all heard about families arguing, even splitting up over disagreements, when someone dies. As the executor, even though you are following the directions in the will, you can still be the target of a lot of anger about who gets what and when. They may even blame you.
5. A lot of time for little pay. For smaller estates, the compensation may fall woefully short in contrast to your time and effort. In other words, it can be a thankless job.
Being asked to serve as an executor is indeed an honor, but it is also a serious responsibility. Really consider these pros and cons before accepting the “honor,” and only do so if you feel you can handle the responsibility well. Don’t be afraid to decline if you don’t feel it is right for you.
I help my clients understand all aspects of estate planning, including creating a will, an estate plan, and selecting the right executor. My goal is always to help my clients protect their assets and loved ones. If you have estate planning needs, please do not hesitate to call me to schedule a meeting. Please call 513-399-7526 or visit my website www.davidlefton.com.