Executor or Executioner? Choosing the Right Person for Your Estate

Life is a difficult enough journey, but one of the most crucial, and often overlooked, steps in estate planning is ensuring that our affairs are in order and that we have chosen the right executor. As time passes so quickly, this becomes more and more pressing.

For those of us approaching the milestone 60’s and 70’s and beyond, we become a little more concerned about these matters, and rightly so. The decisions we take now can have far-reaching repercussions.

What happens to our hard-earned estate after we are gone is not something that we take lightly, not just to ensure our own legacy but to avoid acrimonious disputes when we are no longer there to pour oil on troubled waters.

Choosing the right executor is one of the more important decisions we will make in this regard, so let’s take a look at this process more closely and try to understand why this choice matters and what we can do to ease the making of this crucial decision.

Who is the Executor, and what does he do?
Your Executor (we will use this term to refer to both the executor and executrix) is the person, or persons, trusted by you, and appointed to ensure that your wishes are carried out and to deal with the administration of your estate after you have “shuffled off this mortal coil”, as Shakespeare so eloquently put it.

This means that, besides seeing that all your beneficiaries receive what you intended them to receive, all the legal documents and tax returns are completed; all debtors are paid; assets are accounted for; etc. etc. – and all this in a timeous and professional manner.

It therefore goes without saying that he/she should be dependable, honest, organized and able to execute (excuse the pun) the complex undertaking required of him. On the other hand, a poorly chosen executor might result in holding up the distribution of your assets, or even added unnecessary costs, not to mention arguments among family members and heirs.

Choosing wisely now and considering the characteristics and qualities of a suitable executor should be your overriding concern, and will have far-reaching consequences in making the life of your loved ones less complicated during a period when they are already distressed by your parting.

What to look for when choosing your Executor.

Faithfulness:
You need to choose someone who would be faithful to your wishes and sees that they are carried out, regardless of what others may want. They should have a clear understanding of your principles and values and be true to your intentions. It would help to discuss your preferences with your executor so that they understand your intentions for the disposition of your estate.

Honesty and integrity:
Someone with strong ethical values will be more likely to give effect to your wishes without incurring rancour amongst the heirs and family. Someone held in high esteem by the family, possibly a family member or close friend or even an attorney or professional executor would be able to fill this role better than a mere appointee.

Organisational proficiency:
The executor is responsible for managing complex duties with many formalities and should have the proven ability to handle the administration of these affairs with due regard to the various timelines and what often appear as petty requirements. They must be able to devote the time and attention to manage the responsibilities and be able to adapt to the circumstances.

Professional judgement:
Some financial and/or legal background, or at the least some understanding of these concepts are desirable qualifications. The executor needs to be able to deal with the intricacies of taxes, debts, asset management as well as the pure financial aspects of the estate, and having someone capable can significantly benefit the whole procedure.

The option of a professional executor:
If you believe that there is no family member or close friend who could fulfil the function of executor, you might consider appointing a professional executor. This might be a particularly wise course of action if you have a complicated estate. Professional executors are experienced in the legal and financial aspects of estate management, and would ensure that your wishes are honoured, while minimizing the potential for disputes.

Appointing two executors, one a professional executor to handle the actual management, and the other a trusted family member or close friend, to oversee the honouring of your intentions may also be a wise course of action.

Keeping your executor in the loop:
Once you have appointed an executor, it’s essential to stay in communication with them. Ensure that they have a copy of your will and discuss your estate plans with them. This ongoing communication will not only help your executor feel prepared but also alleviate any concerns among family members.

The executor from hell:
We’ve all heard stories about the “executor from hell”. . . .

This could be someone who is just disorganised, or lacks financial insight, or simply doesn’t have the time to dedicate to the task. All too often, issues arise from emotional strain. Grieving loved ones may not be the best fit for managing administrative tasks that require objectivity and efficiency.

A common mistake some of us may make, is selecting an executor based solely on their relationship to us. While it’s important to trust your executor, they must also possess certain qualities which we have discussed like reliability, organisational skills, and a clear understanding of financial matters and legal obligations.

Ideally, an executor should be someone who can be impartial and remain composed during challenging times.

What can you do?
The responsibility of selecting an executor should not be underestimated. By taking the time to carefully select the right person, you can ensure that your estate is managed according to your wishes, providing peace of mind for both you and your loved ones during a difficult time.

Remember, your legacy deserves an executor who is up to the task.

 

Author:  Dr Jeffrey P Lewis
MDW INC

 

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Meyer de Waal
Email MDW INC:   meyer@mdwinc.co.za
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Dr. Jeffrey P. Lewis.
Email:  jeffrey@mdwinc.co.za
021 461 0065 & 076 952 4985

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