by Alisa Kim O’Neil, JD, CTFA, AEP®, CDFA®, Director of Estate & Financial Planning
One of the most important decisions you will make when drafting your Last Will & Testament is the choice of an Executor, also known as Personal Representative. Your Executor will have total control over your assets and will be responsible for distributing those assets to the named beneficiaries, pursuant to the terms of your Will.
Therefore, you want to choose the individual or individuals who are best suited to handle this role. Here are some of the factors you should consider when making this decision:
1. Is the individual organized and detail oriented?
The Executor is tasked with gathering, valuing and distributing your probate assets to the named beneficiaries. As part of this process, your Executor will be accountable for closing your accounts, and consolidating all your assets, paying any debts, cancelling or updating any insurance coverage, stopping any automatic transactions (payments/receipts), closing out social media accounts, as well as other duties.
If you have a taxable estate, your Executor also has the duty of filing the estate tax return with the IRS and/or state. (For 2019: the federal estate tax exemption is $11.4M and for MA residents, the estate tax exemption is $1M).
2. Does the individual have the time to commit to this role?
Although your Executor will have the assistance of an attorney to file the necessary documents with the probate court, much of the work will be the responsibility of the Executor. He or she will need to have the time to dedicate to this role for a minimum of one year and in some cases, up to five years.
3. Is the individual aware of your wishes and likely to respect them?
Have you communicated your intentions to your Executor, and will that individual be able to carry out these wishes? The Executor needs to understand your philosophy and, more importantly, why your estate should be distributed as stated in your Will
4. Is the individual a peacemaker or a troublemaker?
The individual needs to be able to keep the peace among the beneficiaries of your estate. Is he or she able to act as a mediator and peacemaker, if friction occurs?
5. A professional vs. an individual Executor.
A family member has the familiarity of your wishes, your assets and your beneficiaries. He or she will always be able to work with an attorney/accountant or other professional to advise him or her on the process. Often,individuals name their spouse with a sibling or an adult child(ren) as alternate.
To avoid any conflict, naming a professional to serve as Executor may be the more appropriate route to maintain family harmony. This professional bring experience and time to commit to the estate settlement process.
Conclusion: The best way to ensure that your wishes will be carried out upon your death and to avoid conflict for your loved ones is to communicate now. Proper communication with the individual or professional you are naming as Executor under your Will is key. Inform your Executor of your wishes and provide the contact information for your attorney, accountant and other professional advisors, and the location of all the relevant documents he or she will need in this role.
Our Estate and Financial Planning Group is here to assist our clients in reviewing and discussing these steps. If you have any questions, please contact our Estate and Financial Planning Group:
Alisa Kim O’Neil – [email protected] or 617-275-0313
Kathy Sablone – [email protected] or 617-956-9712
Important: This article does not contain any legal or tax advice. You should always consult with your attorney, accountant or other professional advisors before changing or implementing any tax, investment or estate planning strategy.
IRS Circular 230 Disclosure: Pursuant to IRS Regulations, we inform you that any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax related penalties or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.