Choosing the Right Executor for Your Estate Plan
When planning your estate, one of the most important decisions you will make is selecting an executor. A poor choice, or a lack of communication between the executor, estate, and beneficiaries, can disrupt even the most carefully prepared estate plan.
A story shared by Reuters illustrates this risk. Stephanie Stephens, a beneficiary, discovered that the estate she inherited had decreased by $129,000, a loss she blamed on the executor. The executor failed to safeguard investments during the 2008 financial crisis, leading to a $104,000 drop in value, and then collected a $25,000 fee for their services. To make matters worse, Stephanie had never met the executor before her relative passed away and was unaware of the potential costs.
This situation highlights how a disconnect between the executor, the estate, and the beneficiaries can lead to frustration, confusion, and even financial loss.
Understand the Role of an Executor
An executor is responsible for carrying out the terms of your will and managing your estate after your passing. They oversee financial accounts, property transfers, and communication with beneficiaries. Because this role carries significant responsibility, choosing the right person is crucial.
Key Principles When Selecting an Executor
Know Your Estate
Consider the size and complexity of your estate. A simple estate may be managed by a trusted family member, while a more complex estate, especially one with business assets or multiple properties, may require the help of a professional or institutional executor.
Know the Person
Being a good person is not enough. Your executor should be responsible, organized, and financially savvy. They must be willing to take on the tasks required and have the ability to make decisions that honor your wishes while managing family expectations.
Communicate with Your Family
Conversations about your estate can be uncomfortable, but they are necessary. Let your family know who you have chosen as executor and what responsibilities come with the role. Discuss expected costs and compensation to avoid surprises later.
Why Professional Guidance Matters
Understanding the responsibilities of an executor is just one part of a successful estate plan. At Idaho Estate Planning, our attorneys take the time to educate you and your helpers, understand your family dynamics, and design a plan that reflects your goals and protects your legacy.
Good planning is no accident. With thoughtful guidance and open communication, you can ensure your estate plan works exactly as intended.
For more information or to schedule a consultation, visit https://idahoestateplanning.com/contact
