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Being named executor of an estate can be daunting for those who are unprepared for the task. However, taking some simple steps while the testator is living can make the job much easier.
If you and the person who chose you as executor get together and properly plan for the responsibilities ahead, you will both have greater peace of mind.
Key Takeaways
- The executor of an estate has numerous responsibilities, including tracking estate documents, recording the testator’s preferences, and identifying estate assets.
- With proper preparation, you and the testator can be confident you’ll carry out your responsibilities as executor properly.
- The testator should have already compiled all of the relevant documentation as part of the process of writing a will.
1. Know the Location of the Will and Other Documents
The first and most important step is to know where the will and other estate documents are kept. The executor’s job is easier if the testator keeps the original will, deeds, insurance policies, partnership documents, or other important papers in an agreed-upon location, such as in a home safe or bank safe deposit box. It’s also a good idea to keep copies at a backup location. The copies can be held directly by the executor or by the testator’s lawyer.
Remember that access to a safe deposit box could be restricted once the testator dies. To avoid losing access, make sure that another person, such as a spouse, has access to the box.
2. Make Property and Accounts Joint
A testator who has a spouse will want to be sure that the assets transfer to their control quickly and seamlessly.
The simplest way to ensure this is to set all accounts as joint and make sure that properties and titles are in both names. This also applies to business enterprises involving a partner. This has the added benefit of reducing the size of any estate taxes that are due as long as both spouses do not die simultaneously.
The executor should also have the testator confirm that the correct beneficiary is named for all accounts that demand a specification. These include pensions, retirement accounts, bank accounts, insurance policies, and brokerage accounts.
The list of beneficiaries will need to be updated if the testator is divorced, remarried, outlives a child, or experiences some similarly significant event.
3. Record the Testator’s Preferences
If you don’t know, you should ask how the testator prefers to be memorialized.
A testator may prefer a burial plot over cremation or a private funeral over a large wake. Other popular preferences may include requested donations to a favorite charity or guardianship provisions for minor children.
These preferences should be written down and signed by the testator. Planning it out in advance will be a relief to the person’s heirs as well.
4. List Possessions and Assign Recipients
Many executors overlook one common problem—dispersing personal possessions with little financial value but great sentimental value.
Working with the testator, an executor can create a rough list of personal items and a system of distribution for each item. The testator could also provide reasoning for why each person should receive particular items.
Documenting recipients for sentimental items may offer comfort to the testator and avoid family squabbles later. Moreover, it will help the executor track down loans or gifts given during the testator’s lifetime.
High-net-worth individuals (HNWIs) frequently give financial gifts before death. Organized dispersal can make an executor’s job easier and help balance issues of fairness.
The executor should have the testator confirm that the correct beneficiary is named for pensions, financial accounts, and insurance policies. This will ensure that the accounts are transferred promptly.
5. Set Up a Yearly Accounting Sheet and Updating Schedule
Computers make it easier to track changes in accounts and possessions. If the testator keeps track of the estate electronically, the executor will have a good snapshot of assets when it’s needed.
Keeping an electronic estate document also cuts the time spent looking for that gold watch the testator gave to a grandchild or tracking funds that have been transferred to another account.
6. Have a Sealed Online Accounts Document
An executor should have a record of the testator’s online accounts on sites such as LinkedIn, Facebook, Paypal, and eBay so that the accounts can be deactivated once the testator passes. The same goes for paid memberships to sites like Spotify or Netflix.
In most cases, accounts can be deactivated by presenting a copy of a death certificate. Having a list will simplify this process and ensure that any paid subscriptions get canceled.
7. Know the Relevant Professionals
Executors should have contact details for the testator’s accountant, lawyer, and other professionals who may be involved with the estate.
These professionals may have further information or advice specific to the testator’s situation.
What Are the Duties of an Executor?
The main duty of an executor is to carry out the instructions of a deceased person regarding the distribution of the person’s assets upon his or her death. The executor is named by the testator or by a court.
As such, the executor must make sure that all of the testator’s financial assets and personal possessions wind up in the right hands as promptly as possible.
The executor is also responsible for tying up any loose ends, such as paying bills owed by the testator and closing accounts.
How Do I Choose an Executor?
The most important factor is to choose someone you know to be trustworthy and capable. Most people choose a family member or close personal friend. From a practical viewpoint, the person should live nearby. Some states have specific restrictions but these are usually limited: the person must be at least 18 years old, be a U.S. resident, and not be incapacitated.
Are There Downsides to Being an Executor?
Serving as an executor is a big responsibility, and should only be willingly undertaken for a dear friend or family member. It can be stressful, time-consuming, and put you in the middle of family squabbles that don’t concern you.
The Bottom Line
Preparation can greatly reduce the complications of being an executor. Taking the steps above while the testator is alive will help you carry out his or her wishes properly.
Testators can also be proactive about setting up such processes to make their executor’s job easier.
