Appointing
an Executor of Your Estate
Throughout my many years
experience, I have found that one of the most
important decisions a person can make when preparing
their will is to appoint an executor. Although this
may sound like an easy job, it often has implications
on many different lives. Unfortunately, this decision
is frequently made emotionally, rather than logically.
For example, often a spouse will be appointed, even if
the spouse does not have the aptitude to effectively
administer an estate.
It is apparent to me an estate
administrator must understand the immediate and
long-term needs of the heirs in order to do their job
effectively. A child may need medication or a spouse
may need daily living expenses, these may have
previously been paid for by the decedent and must be
continued. These needs must be taken into account
while administering the estate. At the same time, the
executor must plan for the long-term needs all while
preserving the assets of the estate. Learning about
the heirs, understanding their emotions, opinions and
concerns is an important aspect of the
administrator’s job.
The second, but equally
important, aspect of the executor’s job is to
understand the financial position of the decedent. If
there is an existing business, would it be better to
sell the business or do the heirs have any interest in
continuing and maintaining the business? Should
securities be placed in avenues that will guarantee
income or is long-term growth more important? Some of
these questions are answered based on the heir’s
ages and individual needs. As you can see, the
administrator must understand the financial position
and have financial knowledge to make the best
decisions possible.
Experience is a vital factor in
determining who can best handle your finances. Even
the brightest individuals may not have the experience
and may not have made important financial decisions
within their lives to provide them with the expertise
to adequately perform the duties of the executor of
your estate. Sometimes, professional executors, such
as banks or trust companies can offer your estate and
heirs the protection you desire. They will have the
knowledge to analyze businesses, real estate and
securities and supervise the maintenance or sale of
these, if necessary. However, family members with the
time to devote to the estate and the intelligence to
gather information and be objective can often do an
outstanding job in administering estates.
Based on my involvement in this
area, I have realized an estate executor is in a
unique position. While they were hired and appointed
by the decedent, they are working for the benefit of
the heirs. Finding
the person or company that can balance financial
protection with the individual needs and emotions of
the heirs, although difficult, is not impossible.
By
Luigi Leparulo
For
more information on financial and estate planning:
Financial
Resources
Phoenixville,
PA
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