Most of us have heard of the term executor in reference to Wills and managing estates. But it’s not until we become one or need one that we realise we don’t know what this important role actually entails.
If you’ve recently been asked by your parents, partner or family friend to be an executor of their Will or are looking to appoint an executor of your own, we have you covered.
Who can be the executor of a Will?
Anyone over 18 who is mentally capable can be an executor. Most people choose a partner, relative or family friend who they feel will be able to carry out their wishes.
Others choose to pay a neutral and professional party such as a trustee company or accountant as their executor to minimise the risk of arguments between beneficiaries.
What do executors do?
The role of an executor is to manage the deceased’s estate. While the initial tasks may include arranging funerals, locating the Will, and notifying beneficiaries, many tasks are undertaken over months and sometimes years.
The executor can be responsible for taking care of pets, cancelling services and utilities, redirecting mail, closing bank accounts, lodging tax returns, obtaining death certificates, applying for a Grant of Probate and notifying Centrelink.
Executor duties can be overwhelming if you have no legal or business knowledge (which most of us don’t). Wills and estate lawyers will help simplify and streamline the estate administration process while ensuring that you feel confident and supported in your role as executor or administrator.
Things to consider before appointing an executor
It’s wise to appoint an executor who resides in the same location, is young and in good health. It can be harder to manage the deceased’s estate from overseas (plus there could be extra tax). Distribution of your assets can be delayed if the executor is unwell or passes away shortly after being appointed.
You may have as many executors as you want, but it’s best to keep the number of executors under three to reduce time dedicated to administration - everyone needs to sign off on everything.
If you choose to have more than one executor, e.g. both your children, consider their relationship and if all parties would be able to work together to fulfil your wishes.
We also recommend you have a backup executor who can step in if your primary executor is incapacitated.
What information do executors need to know?
The most important thing an executor needs to know is where the deceased’s Will is being stored or held. You’ll be surprised how many people don’t share this information. So take the time to sit down with your loved one and find out their preferences around funeral arrangements, sentimental possessions and where their Will is.
Executors also need access to information on the assets and liabilities of the estate and the addresses and contact details of all beneficiaries. You may also need taxation and financial advice to carry out your duties.
The role of executor is important but doesn’t have to be done alone. Remember you’re still human, and it’s OK to seek support so you can grieve too.
If you’d like us on your side during this difficult time, book a free 10-minute call with our friendly estates team.
And update your Will and Estate Plan with our help today so that you know your loved ones will be able to action your wishes.