Choosing an executor for your Will
is a crucial decision that requires careful consideration. The executor is responsible for managing your estate and ensuring your wishes are fulfilled after your death. Sadly, it is not unusual for executors to “misunderstand” the Will and do exactly as they wish – which is usually financially to their or their children’s benefit.
My first piece of advice is ideally to have two, and even then, have at least one reserve executor.
The second is to consider strongly having professionals involved if there are any beneficiaries or non-beneficiaries (often beneficiaries spouses) who might kick up a fuss. A professional can put them firmly in their place without causing World War 3 in the family and destroying goodwill. I know some good and sensibly costed professionals.
Here are some more key factors to consider when choosing an executor:
Qualities of a Good Executor
Age
If you are young, by all means, appoint executors the same age as you, but as you get older, it becomes more important that the executors are significantly younger than you, or they may be too old or die before they get the responsibility. Perhaps you should aim for at least a 20-year gap by the age of 60, increasing as you get older. At 100, you shouldn’t really burden an 80 year old with the responsibility.
REMEMBER Wills should be reviewed every 3 years or so to ensure they are up to date, tax efficient and benefit the right people.
Trustworthiness
The executor will have access to your financial accounts and possessions, so it’s essential to choose people you trust implicitly. They should be honest, reliable, and have a strong sense of integrity.
Organisational Skills
Managing an estate involves handling significant paperwork, meeting deadlines, and managing detailed tasks. An organised individual will be better equipped to handle these responsibilities efficiently.
Financial Acumen
While not necessarily a financial expert, your executor should have a basic understanding of finances and the ability to handle money responsibly. This is crucial for managing assets, paying debts, and making sound financial decisions. Ignoring tax or insurance can be disastrous.
Impartiality
It’s beneficial if the executor can remain neutral, especially if there are potential conflicts among beneficiaries. Someone who can manage family dynamics diplomatically can help prevent disputes.
Availability
Settling an estate can take months or even years. The executor should have the time to devote to this responsibility and ideally live relatively close to manage tasks that require physical presence.
Who Can Be an Executor?
You can appoint almost anyone as an executor, including family members, friends, or professionals like solicitors, trust corporations or accountants. However, they must be over 18 years old.
It is common for beneficiaries of the Will to also serve as executors.
Consider appointing multiple executors
(up to four) to share the responsibilities or have a backup in case one cannot serve.
In my opinion, two should be enough; four could create problems rather than solve them. Just make sure they can work together and that you have reserve executors, just in case the original ones are unable to act.
Professional Executors
Professional executors such as solicitors or banks can be appointed, but charges vary widely, so my expertise in keeping costs down may be useful. They are experienced in handling estates but will charge fees based on the complexity of the estate and their involvement. As I mentioned above, they can save the family from imploding in the event of a dispute, as it is no longer personal between family members, and the alleged wrongdoer is dead.
Using a professional can reduce the administrative burden on family members and help avoid potential family tensions during emotionally difficult times.
Steps to Appointing an Executor
Consult with Potential Executors
Discuss the role with your chosen executor(s) to ensure they understand what it involves and agree to take on the responsibilities.
Formal Appointment
Clearly name the individual(s) as your executor(s) in your Will and ensure you use their full and correct name and address. Consider naming an alternate executor(s) if your first choice cannot act.
Inform Family Members
Let your family members and beneficiaries know who the executor is to prevent misunderstandings and disputes later on.
How to ensure the Necessary Documents are available
Ensure your executor will have access to important documents such as the Will, financial statements, property deeds, and any other relevant paperwork. This is where you need to be organised and set up a file to keep the relevant documents together and up to date. To be fair, putting the Will in a proper storage service is probably best.
By considering these factors and following these steps, you can select executors who will manage your estate according to your wishes, providing peace of mind for you and your loved ones.
Make your executors life easier / cheaper:
What documents will your executors need to apply for Probate?
- the death certificate and a couple of certified copies at least;
- the Will (if there is one) and any codicil (codicils are a sort of PS and best avoided.)
- Letter of wishes, if any.
- contact details of all beneficiaries named in the Will; or closest relative/s entitled under the intestacy rules if there is no will;
- marriage /civil partnership/change of name certificate; and
- a list of all debts and assets.
- If there are any business interests, provide full details, especially any partnership agreements.
- A list of all gifts made in the previous 7 years, if you have exceeded the gifting allowances and Inheritance Tax, could be payable if they were added back in.
- Any trusts, life insurance, pensions, investments, shares.
- It is best to keep at least one recent statement in your file to ensure items are clearly identified.
- Login details are required for ALL online accounts, including social media. These will be needed, but the problem is that writing them down is insecure, which is rather a problem!
- Watch out for any shares based in North America as they can cause substantial extra work and delay.
- For property assets, make sure they are registered with the Land Registry and perhaps keep a copy of the title deed on the file.
- The executor will need to value all of your assets and liabilities.
I would suggest that everyone undertake this and create a lever arch file to keep at least the list and the latest statements. Make sure you get in the habit of keeping it up to date. What you do with passwords, etc., is quite up to you, but it is a big issue.
