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- 7 Costly Mistakes to Avoid When Choosing an Executor for Your Will (financebuzz.com)
Choosing the Right Executor: Avoiding Costly Mistakes
Creating a will is crucial for estate planning, but equally important is selecting the right executor. This person will carry out your will’s instructions, and a poor choice can create financial and emotional turmoil for your loved ones. Here are seven common mistakes to avoid:
- Don’t default to the oldest child.
While tradition might suggest the eldest, the ideal executor possesses specific skills: organization, financial acumen, impartiality, and diligence. These qualities aren’t tied to birth order.
Choose the most qualified person, regardless of age or family position.
- Watch out for warning signs.
A responsible executor demonstrates financial stability in their own life. Avoid those with poor financial habits, such as consistently late bill payments, excessive debt, and disorganized records.
These habits can translate into costly errors when managing your estate.
- Consider proximity.
While technology makes long-distance communication easier, a local executor simplifies many tasks. Out-of-state executors may face additional legal hurdles, and managing local matters like property sales or court appearances becomes more complex.
- Avoid co-executors for the sake of “peace.”
Naming multiple executors can lead to disagreements during the probate process, potentially stalling it completely. Unless they can act independently, joint decisions can become points of contention.
- Always ask first.
Don’t assume someone wants the job. They have the right to decline, which can delay the process.
Discuss the responsibilities and ensure they’re willing to take them on.
- Look out for conflicts of interest.
An executor has a legal obligation to act in the best interest of the estate. Consider potential conflicts, such as naming a business partner who might also be interested in buying your share of the business.
- Acknowledge the emotional toll.
Being an executor is demanding and stressful, often requiring a year or more of work during a time of grief. Choose someone with the emotional strength to handle the responsibility.
The ideal executor combines financial savvy, organization, integrity, and a close relationship with you, free of conflicts of interest. While finding the perfect candidate is challenging, avoiding these mistakes increases your chances of making a suitable choice. Remember to compensate your executor for their time and effort, as most states allow for a fee paid from the estate.
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- 7 Costly Mistakes to Avoid When Choosing an Executor for Your Will (financebuzz.com)