MANY believe they are bestowing an honour on a family member or friend by naming them as an executor. However, the process can be complex, lengthy and emotionally draining; not to mention if the Executor doesn't act in accordance with the Will-maker's wishes, they could be held personally liable.
It is important to remember that the grieving process is deeply emotional and the responsibilities of being an Executor are serious - and sometimes very time consuming. A seemingly straight-forward Will can be more complicated than it first appears, depending on your family dynamics and structure.
Appointing a friend who is a similar age to you means you will experience ageing together - including the effects it may have on both your health and capacity to take on additional responsibilities.
An Executor is appointed by you in your Will. Their sole role is to manage your estate after your death, and distribute it according to your wishes. Being an Executor comes with a lot of responsibility. Most people appointed to this role have to 'learn on the job' often at a difficult and painful time. However, seldom do Executors complete the administration themselves, drawing on the expertise of solicitors, accountants and other professionals (with associated additional costs).
Duties of the Executor may include:
- Organising the funeral
- Assuming custody of your estate
- Paying debts
- Submit date of death and estate tax returns
- Resolving disputes
- Selling properties
- Distributing the estate in accordance with the Will
- Preserving assets and managing investments until beneficiaries are of age.
An Executor is expected to apply to the Supreme Court in the state or territory of your usual residence for a "grant of probate". This is recognition that the Will is legally valid and gives the Executor the proper authority to deal with the estate.
An alternative to appointing a family member or friend is to appoint an independent trustee company, such as Equity Trustees, as Executor or co-Executor. A trustee company can expertly and impartially co-ordinate all legal, administrative, investment and tax requirements to ensure an estate is distributed efficiently.
Having an independent executor with no personal connection to the estate can make the process easier for everyone. An independent trustee company is experienced at the task and knows how to deal with any challenges that might arise; and is focussed only on ensuring your final wishes are carried out according to your Will.
It's worth thinking very carefully about who you appoint - for everyone's sake.
If you would like to find out more about appointing Equity Trustees as your independent executor, please contact us on 1300 133 472 or visit eqt.com.au
Equity Trustees Limited (ABN 46 004 031 298 AFSL 240975), is a subsidiary of EQT Holdings Limited, a publicly listed company on the Australian Securities Exchange (ASX: EQT).
