Everyone should have a will, regardless of age. Yet, according to an article by USA Today, the number of US adults 55 and over with a will fell from 46% last year to 43% this year.
A will allows you to provide for your loved ones after death. It outlines how you would like your property and assets to be distributed. It will also name at least one executor who will fulfill your wishes.
It's an important role, so you'll need to choose wisely.
Who can be an executor of a will? You should know the answer if you're planning your estate.
If not, after reading this article you will. It outlines an executor's responsibilities, eligibility criteria, and the process of appointing one.
An executor is the person you appoint who will carry out the instructions you outlined in your will. Their primary responsibilities are accounting for all assets and distributing them correctly.
Legally, they have a fiduciary duty to act in the best interests of the beneficiaries. These duties include:
There isn't a limit to the number of executors you name in your will. However, the executors listed must agree on all decisions. If you plan to appoint more than one, ensure they can work well together.
Choosing an executor could be difficult considering the serious responsibilities they must undertake. If any of their actions, or lack thereof, results in a loss to the estate and affects any beneficiaries, they could be financially liable.
Executor qualifications will vary from state to state. According to the law, an executor must exercise skill and reasonable care when administering the estate.
In most states, anyone over 18 without any felony convictions can be an executor. However, estate executor criteria may differ based on the laws of the state where you live.
Common choices include family members -- such as spouses, children, and siblings -- and friends. Some choose to appoint professionals such as lawyers or accountants due to their educational background.
Familiarising yourself with the list of executor responsibilities could help you choose the most suitable person. Based on your will, executor duties may include any or all of the following:
An executor must be impartial, diligent, and honest when carrying out these duties. They should also keep beneficiaries informed throughout the process to avoid disputes.
The answer to who can be an executor of a will should be clearer now. However, knowing what criteria can disqualify a person could make it even more understandable. A person cannot be an executor if they are:
Persons who are likely to jeopardize beneficiaries' interests or jeopardize estate assets due to substance abuse, lack of understanding, or dishonesty also cannot qualify as executors.
Appointing an executor is straightforward. Start by creating a shortlist of the people you trust who meet the eligibility criteria. You may be able to narrow down your list even further by considering if the person:
If the person does not have financial or legal experience, they can seek advice, as needed.
Contact the first choice on your shortlist and discuss your intentions to gauge their level of comfort undertaking the role. Ask them directly if they are willing to be the executor of your estate.
If you both agree list them as an executor when you're creating your will. If you already have a will, update it to reflect your choice.
The process is court-supervised and involves proving the authenticity of the will. Once validated, the executor named in the will is officially appointed by the court. The executor will then have the power to legally act on behalf of the deceased.
Unfortunately, not everyone takes the time to do estate planning. If there is no will, the court will choose the executor. The first choice is usually a surviving spouse followed by adult children and other family members.
The executor will then distribute the estate's assets based on the state's intestate succession laws. Generally, spouses and children are the first to inherit, followed by other relatives.
It should be much clearer now who can be an executor of a will. The person must meet certain eligibility criteria, but must also be willing and able to undertake the role. Once you both agree, you can include them in your will.
Creating or updating your will is an important part of estate planning. The process also allows you to plan for incapacity. You can appoint someone to make financial and medical decisions for you if you are unable to, including the best assisted living care.
You'll get quality care at Prairie Hills Cedar Rapids. Our highly trained staff with years of experience will support your daily needs to ensure you live comfortably and safely while maintaining your independence. Schedule a tour of our community in Cedar Rapids, IA, to learn more about what we can offer.