The Do’s and Don’ts of Being an Executor
By: Dennis F. Palumbo, CPA
Taking on the job of executor is not a role to be taken lightly. If you ignore the warning signs, you could be setting yourself up for aggravation, beauracratic hassles, angry battles with family members and even law suits, according to an article on the MSN Money web site.
An executor is a person designated in a will to see that the deceased’s last wishes are carried out and to settle the deceased’s probate estate. An executor’s job typically lasts from two months to two years.
Most people would be shocked to know what’s often involved, often the most difficult part is not dealing with the money or the lawyers or the courts, says Columbus, Ohio, attorney William J. Browning “It’s the personal property. I’ve had people fight over Tonka toys.”
All this doesn’t mean you should say no when asked to be an executor. Very few wills or trusts are contested in court and a competent lawyer can help guide you.
The MSN Money article identifies a number of red flags that should prompt you to think twice before you say yes:
· You can’t obtain a copy of the will or trust to read beforehand, discussing your duties with the attorney who drafted the will should help in seeing the situation you’re likely to face.
· Someone’s being disinherited
· There is already family tension
· The person who is asking you isn’t well organized
· The will was created with a kit or software rather than a lawyer
· You’re being put in charge of a sibling’s money
If you decide to take the job you can take some steps to limit the problems and to protect yourself. Among them:
· Ask for language in the will that limits your liability. Most well drafted estate planning documents will restrict liability unless the executor shows “gross negligence.” How well this works depends on the state you’re in and how well it is worded. It won’t prevent someone from suing you; it just may prevent them from winning the case. You may still be out the legal fees and time.
· Make sure that you’re allowed to hire an attorney and/or an accountant to help you, and then do it. You don’t have to know everything but you do need to know the important things, you need to know the right questions to ask.
· Make things easier for your own executor. Your experience will teach you a lot about what works, and what doesn’t, when it comes to estate planning. Leverage what you learn by making sure your own estate planning documents are clear, and that your executor has all the information and support they need.
I have found a good source for articles dealing with the issues that we sometimes face as we grow older is the Elder Law Answers website, which can be found at www.elderlawanswers.com
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