Among the choices that you must make when you are planning your estate is that of executor if you are utilizing a last will to transfer assets to your loved ones. It is important to recognize the fact that the executor has a lot of pragmatic duties and it is not just a ceremonial title. When you pass away your estate must pass through the legal process of probate, and during this period of time the executor will handle all the hands-on tasks that are involved in actualizing your wishes as stated in the last will.
It is up to the executor to make sure that all creditors are satisfied. Final taxes must be paid as well, and this will often require the services of an accountant. All of the assets are going to have to be inventoried and appraised, and there may be assets that must be liquidated. So the executor may have to work with an appraiser or multiple appraisers and an estate liquidation company as well as a probate attorney.
When you consider all of the above you can see that the executor needs to be a business savvy individual. All of these tasks can take a good bit of time as well, so your executor must be someone who has the time to focus on the administration of your estate.
The comprehensive estate plan today will also include an incapacity component, and this requires the choice of representatives as well. Durable powers of attorney for health care and financial affairs are generally recommended so that you have decision-makers in place to act in your behalf should you become unable to do so due to incapacitation at some point in time. Clearly, you must be discerning when you are selecting your representatives because they will be assuming a a lot of responsibility should you in fact become incapacitated during the latter stages of your life.
- Is Estate Planning Only for the Rich? - January 19, 2023
- How Do You Plan Your Estate When You Have a Business Partner? - January 5, 2023
- Why It’s Important to Plan Your Estate Now - December 22, 2022