The role of an executor in estate planning is to take charge of ensuring that the last wishes of the deceased are carried out in accordance with the instructions laid out in their last will and testament. Executors are nominated individuals named by the deceased to manage the affairs of their probate estate. The term ‘executrix’ is sometimes also used as a gender-specific word for executor when they are female, although this is slightly outdated.
An executor can be almost anyone aged 18 years or over and there can be as many as four executors named in any single will. Some advice on choosing who should be a nominated executor can be found in the PDF attachment to this post.
Some people choose family members or close friends, while others prefer to nominate a professional such as a lawyer or accountant to be their executor. Dr Edgar Paltzer is an attorney-at-law who provides clients with legal advice on wealth structuring services, including estate planning.
Executor Responsibilities
The key responsibility of an executor is ensuring that all assets left are divided among the chosen recipients as laid out under the terms of the will. This includes ensuring all assets named in the will are accounted for and valuing those assets. The executor is also responsible for making sure any outstanding debts of the deceased are repaid before assets are divided.
Assets include everything of financial value owned by the deceased, such as property, cash, stocks and shares, investments and collectibles. Anyone who is going to be named as the executor of a will should be informed of this decision and given the opportunity to prepare to meet their responsibilities while the testator of the will is still living.
A definition of a testator can be seen in the embedded short video.
Executor Preparations
Preparations that the executor should make include ensuring that the testator has an accurate and up-to-date list of all owned assets and debts and a valid last will and testament, along with knowledge of where these documents are kept and how to access them when required.
They should also know or have access to contact details of any legal professionals or other professionals that would need to be contacted and know the reason why. It can be helpful for the testator to discuss their wishes for burial or cremation and the type of funeral or memorial service they would prefer prior to death.
Executors can also help reduce the risk of conflict following a death by discussing the contents of the will with the proposed beneficiaries while the testator is still alive. Executors should also have copies of all documents that are relevant to managing the wishes of the deceased.
Probate Review
One of the first tasks of the executor or executors following the death of the testator is submitting the will and any other relevant documents for review and acceptance in the probate court. This process involves a judge reading the will and declaring it valid, which means it is important there are no procedural errors.
Each will must meet the letter of the law in the jurisdiction it is filed in. Executors can help make this process easier by familiarising themselves with probate law in their jurisdiction and ensuring the will meets all regulations and is valid. This probate review is also an opportunity in most jurisdictions for any individuals who wish to contest the will to come forward and makes their objections known.
The infographic attachment contains a quick checklist for estate planning.