Choosing an Executor for Your Estate
Here’s an uncomfortable truth you need to accept: Someday—hopefully in the very distant future—you are going to die.
The good news: You can make that moment easier on your heirs by taking a few simple steps.
One of the best ways, financially, to prepare now for that time is to choose a person to be the executor of your estate. Unfortunately, that also can be one of the more overlooked aspects of estate planning—which can spell trouble for your family and your wealth.
The CEO of your estate
Your executor is essentially the CEO of your estate—the person responsible for making sure your will is executed properly. This role can mean handling everything from distributing assets to heirs to ensuring any taxes due are paid.
In other words, your executor is a crucial player on your estate planning team.
Not surprisingly, then, people often find it difficult to choose their executor. The good news: You can choose from virtually anyone. Although in our experience, a family member is the most common option, professionals—lawyers, bankers and others—are also commonly selected. What’s more, family member executors may engage a professional for help doing the job—a move that can potentially help avoid family conflicts over assets.
Executor misconduct
There are clear circumstances where executors do not fulfill their obligations. Some of the more egregious issues we have seen include:
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Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is licensed as an investment adviser with the State of Colorado Division of Securities, and its investment advisory representatives are licensed by the State of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. It does not constitute investment or tax advice. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.
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