Choosing the Right Executor for your Estate

As we move through life it’s not unusual that the one aspect that often remains unexplored until necessary is estate planning. Assigning an executor for your estate is a pivotal decision that requires thoughtful consideration. This person will play a crucial role in ensuring your wishes are carried out smoothly, making it essential to select someone willing, able, and responsible.

Willingness and Reliability

The ideal executor should be someone you know to be both willing and reliable. The role demands responsibility and a strong sense of commitment. As the executor will navigate the emotional terrain of grief while making sensible decisions, choosing an individual with both empathy and reliability is paramount.

Time and Skills

Administering an estate requires time and specific skills. The executor must possess the ability to make sensible and timely decisions amidst the emotional challenges that accompany grief. Additionally, if there are beneficiaries under 18, the executor's role may extend to holding funds until they come of age. Be prepared for a minimum of three months to obtain the grant of representation from the Supreme Court.

Number of Executors

While the law allows for up to four executors, it is recommended to have 1-2 for efficiency. The appointed executors must get along and work harmoniously. Always have a backup executor in case unforeseen circumstances arise.

Location Matters

Consider the location of your executor carefully. Hardcopy documents may need to be signed, and if inconvenient at the time, arrangements can be made. Delays may occur if logistical difficulties hinder the executor's ability to administer your estate promptly.

Overseas Executors

If you choose an executor residing overseas, be aware that your estate will be treated as a foreign trust. This can have implications, so it's crucial to factor this into your decision-making process.

Age and Health

The age and health of your chosen executor should be considered, as their role commences after your passing. If your executor loses their capacity to make decisions or is unwell, it may impede their ability to act on behalf of your estate.

Complex Affairs

If your assets are tied up in companies or trusts, or if your affairs are complex, your executor may need to liaise with professionals such as accountants and lawyers. In such cases, choosing a professional executor, like an accountant, lawyer, or trustee company, might be the right decision.

Trustee Companies

For those with historically relevant reasons or complex financial situations, trustee companies like State Trustees, Equity Trustees, Australian Executor Trustees, and Australian Unity Trustees can offer professional expertise and impartiality. This is especially beneficial if tensions exist within the family.

Selecting the right executor is a crucial step in ensuring your legacy is handled with care and accordance to your wishes. Take the time to evaluate potential candidates, considering all relevant factors, to make an informed decision that will provide peace of mind for you and your loved ones.

Speak to us about your estate planning needs.