Six Important Questions if you are Asked to be an Executor
By: Sheldon Metz, J.D.
We routinely advise our clients to review and update, if necessary, their Last Will and Testament and other estate planning documents. One of the important decisions they need to make is whom to ask to be the personal representative or executor in their will. “If it is necessary to use your Will at your death, the personal representative or executor will open a probate proceeding in your local county court. Under court supervision, your personal representative or executor will pay your final debts, expenses, and taxes, before distributing the remaining assets in your estate to beneficiaries according to your intent and instructions.”1
Typically, you name someone you trust in that role and hope they don’t have to serve for many years. However, what if you are the one being asked to serve as the personal representative or executor? What questions should you ask to be prepared and make your job as efficient as possible?
1. Am I the first in line or the contingent?
For married couples the spouse is usually named as the executor unless there are extenuating circumstances. It is important to know if someone else is likely to fill the role or if you are first in line.
If it is likely you will need to serve, then you would be wise to gather information and documents as soon as possible. If you are listed as the contingent, or second in line, you should determine if it is likely the primary executor will be able to serve given a normal life expectancy of the testator.
2. Where are the will and other important documents?
Perhaps the most important thing for you to know is the location of all the documents you will need to settle the estate. These include but are not limited to:
- The original of the Last Will and Testament
- Deeds to any property
- Titles to property such as automobiles
- Partnership documents
- Insurance policies and annuity contracts
- Bank and brokerage statements including retirement accounts
- Burial contracts
You will immediately need access to these documents to begin the process of settling the estate. Many times, an executor spends many frustrating weeks merely trying to ascertain where the documents are and what assets make up the estate. Do that work now with the testator and save yourself a lot of time later.
3. Does the Will contain Testamentary Trusts? If so, who is the trustee?
If you have been asked to be the executor, make sure you understand if you are also being asked to serve as the trustee of a Testamentary trust. The job of executor can be frustrating at times but typically only lasts for a few months.
On the other hand, you could be a trustee for years depending on the terms of the trust and at what ages the trust assets are paid out to the beneficiaries. In addition, the tasks associated with executor are more straightforward; pay off debts and distribute the assets according to the Will. However, the job of trustee can be much more complicated when having to tell a beneficiary “No”.
4. Does the testator desire to distribute personal possessions to specific beneficiaries?
Typical Wills will bequeath personal effects (including jewelry, clothing, books, china, etc.) to a beneficiary or beneficiaries. Furthermore, the Will may include a statement such as, “Provided further, I may leave a letter or other writing with this Will in which I set forth a suggested disposition of my personal effects. I request but do not direct my Executor to follow my wishes as set forth in such writing.” That means the testator has written a separate list of personal assets to be distributed to specific individuals.
Sometimes personal items have little monetary value but significant sentimental value. Children have been known to cherish items connected to memories. You would be wise to review the list with the testator in advance so that there are no misunderstandings among the beneficiaries.
5. Is there an online accounts document?
In the age of social and other digital media, the testator should provide you a document listing his or her online presence (Facebook, LinkedIn, eBay, etc.). This document would allow you to deactivate the accounts on behalf of the testator.
Even though most of these sites would accept a death certificate this document would make your job much easier. Connected to the idea of digital media is the growing interest in crypto currency. Make sure you have access to all relevant passwords for these accounts or “wallets” so you can distribute these assets as well.
6. Who are the testator’s other relevant professionals?
Like the list of documents above, you need to have a current list of the other professionals working with the testator. This includes but is not limited to:
- Attorney that prepared the Will and other documents. Most likely you would consider using the same attorney to help you settle the estate, but you are not required to do so.
- CPA or tax preparer. You may have to file a tax return for the estate.
- Financial Advisor
- Any other advisors associated with other entities such as partnerships or private investments.
- Other stockholders of any private corporations owned by the testator.
Being asked to serve as executor is a sign of the respect and trust the testator has for you. Hopefully you see it as an act of service or love on your part rather than a duty. Ask these questions to make sure you are as prepared as possible to carry out this task. As always, our team here at the Stevanovic Metz Group have access to estate planning resources to help you along the way.