Should you choose family or friends to be your Executors?
Choosing an executor for your Will is one of the most important decisions you'll make in estate planning. The executor is responsible for managing and distributing your estate according to your wishes after you pass away. Many people opt to appoint family members or friends as their executors instead of using a professional. This decision comes with both benefits and challenges. In this blog post, we'll explore the pros and cons of using family or friends as executors, and offer tips for making the right choice for your situation.
The Role of an Executor
Before diving into the pros and cons, it's crucial to understand what an executor does. The responsibilities include:
- Filing the will with the probate court
- Paying off any debts and taxes owed by the estate
- Managing the estate’s assets, such as property, investments, and personal belongings
- Distributing assets to the beneficiaries as specified in the will
- Keeping detailed records of all transactions and communications
- Handling any disputes or legal challenges that may arise
Pros of choosing family or friends as Executors
- Family members and close friends often have a deep understanding of your wishes and personal circumstances. This familiarity can be invaluable in ensuring that your intentions are honoured.
- Professional executors charge fees for their services. Using a family member or friend can save on these costs, leaving more of your estate for your beneficiaries.
- A loved one may be more personally committed to carrying out your wishes and ensuring that the estate is handled with care and sensitivity. They may also be more motivated to resolve matters quickly for the benefit of other family members.
- Working with someone who knows you and your family can make communication more straightforward and less formal, potentially speeding up the process.
Cons of choosing family or friends as Executors
- Administering an estate can be a time-consuming and stressful task, especially during a period of mourning. The emotional toll on a grieving family member or friend can be significant.
- Estate administration requires a level of financial and legal knowledge that many people do not possess. Mistakes or delays in the process can lead to complications and potentially legal issues.
- Family dynamics can be complicated, and the role of executor can sometimes lead to disagreements or tensions among beneficiaries. Accusations of favouritism or mismanagement can arise, straining relationships.
- Being an executor can require a substantial amount of time, which might be difficult for someone with other significant responsibilities, such as work or caregiving.
Summary
Selecting an executor is a personal decision based on your unique circumstances and relationships. While appointing a family member or friend can offer trust, cost savings, and a personal touch, it's important to consider potential challenges like emotional strain and lack of expertise. They don't have to handle everything alone; professional help is available for more complex aspects of estate administration, such as obtaining the Grant of Probate or managing the entire estate. Consulting with an estate planner when drafting your Will can help ensure your estate plan is robust and your chosen executor has clear guidance. Additionally, writing a letter of wishes can offer further clarity, detailing your personal preferences and providing your executor with a better understanding of your specific desires, which helps manage your estate according to your wishes.
