Choosing the Right Executor for Estate Planning

Trust is a Crucial Aspect

The executor named in your will is entitled to access your checkbook and service any unpaid debts when you pass. Often, people choose family members or close friends. But because of the complex nature of this job, you’ll want to choose someone who’s responsible, trustworthy, and honest. Even if your will is straightforward, the executor will still have a lot on their plate, and all the tasks will need to be completed in a timely manner.

Choose One Person to Handle Your Affairs

Some individuals are inclined to include two or more representatives, especially when they have several adult children or siblings. But this can result in fighting if the co-agents have different opinions, and many banks do not allow co-executors, so complexities might arise if there are checks requiring two signatures. As such, you’re better off naming a single executor to manage your estate. However if you must name co-agents, your will should indicate the individual who has the tie-breaking vote.

Understand the Residency Rules

In most parts of the country, you can choose an executor who does not live in the same state as you. The residency rules vary, however, and there are places that put limitations on non-residents. Some states require a bond to protect your heirs should mismanagement occur, some call for the appointment of an in-state agent, and some require an out-of-state executor to be a beneficiary or family member. So, if you are planning to choose an individual who lives in a different state, it would behoove you to check if there are any special requirements imposed by your state.

Get an Approval

Whomever you select to manage your assets when you pass, be sure to get approval before including them in your will. And after you’ve come to an agreement, go over the details of your finances with that individual to keep them informed on the location of your key documents.