If you’ve decided to finally make that will or get your will revised, good job! It’s an important step to take to help protect your loved ones and your hard-earned assets. However, there’s one important step that needs a lot of serious consideration: appointing an estate trustee and/or executor. An executor has one role, and an estate trustee has another, but sometimes these terms are confused. An executor is charged with managing the overall affairs of the deceased as set out in the will and making sure the estate is settled, including overseeing the distribution of assets to beneficiaries and perhaps looking after funeral arrangements. A trustee, however, acts as the temporary ‘owner’ of specific assets ‘in trust’ and ensures those are managed and distributed accordingly.
You can appoint the same person to be both your executor and trustee, but be sure both you and they understand the different roles. Direct family members or close friends are often chosen to be executors, but if you are selecting a different person to be your estate trustee, it is not uncommon to choose a finance or legal professional.
Let’s look at the top-recommended traits for an executor or trustee so you can make an informed decision and choose the best person for the job. This is an important, legal role with hefty responsibilities and time commitments, so you need to be sure.
Tops traits needed in an estate trustee or executor:
- Trust
Naturally, you want to select someone who is trustworthy, has integrity, and who will make strong, impartial decisions not based on emotions or intimidation.
- Able to handle the pressure
The person who does best in this role should be organized, calm under pressure and able to deal with any problems or conflicts that arise. If an executor makes a mistake when administrating the estate that results in a loss for the beneficiaries, they could be held liable for these losses. It’s important to note that when a will is carefully drafted and the deceased’s assets/finances are well-organized, the process is more likely to run smoothly.
- Time
At least for a short time, the job of the executor can be demanding. They may need to have visits and/or calls with the deceased’s family members and other beneficiaries, and likely need to spend time working with funeral homes, lawyers, bank or investment advisors, accountants, the courts and so on. If they live out of town and need to make several trips to finalize the estate or manage your home/property sale, that can also add extra pressure and expense for them.
- Health
When choosing your executor or trustee, don’t forget to take their age, health and overall ability to manage this job into account. For example, some people want to choose their parents as their executors, but forget to consider their lifespan or future physical/cognitive abilities when making that choice.
Finally, when you ask someone to become your executor and/or trustee, be sure to explain what the job entails. They may in fact, say ‘no’ if they don’t feel they have the time, ability or commitment. You can then go on to ask another trusted person, or you can hire a corporate executor or law office to manage this important job.
To help make your decision easier, connect with us. We specialize in helping Muskoka families with planning and executing their wills and estates. Call today to make an appointment at 705-645-8743. We’ll walk you through every step of the process so that you are clear and confident about your will and your choice in choosing someone to manage your estate.
