A professional executor may be a wise choice for you estate.
You know what you have.
You have decided who gets what.
You know who you want to take care of things if you cannot.
Now you need an executor for your estate.
According to a recent nj.com article titled “Should I choose a bank to be the executor of my will?,” you have several options available.
What are they?
The first is to selected a trusted friend or family members as your executor.
This is beneficial because you know the person and they know you and your family well.
It is often feels safer to trust someone you know with this significant responsibility.
Another option available to you would be to use a professional executor.
One of the primary options for a professional executor is a bank.
There are benefits to using a bank.
Banks have experience administering estates and handling money.
As such, these professional executors may settle the estate more efficiently than a family member.
Bank have policies in place to protect your estate from theft or mismanagement while executing your estate.
These protections can minimize anxiety regarding the passing of your assets to you heirs.
When it comes to have administering an estate, impartiality can be very desirable.
Believe it or not, beneficiaries often try to influence the executor.
A bank will be an impartial executor and will not be so easily swayed.
Professional advisors will be able to administer your estate without fear of loosing or damaging delicate family relationships.
Despite these benefits, many people choose an amateur over a professional executor to avoid the having to pay for the services.
These can be quite significant.
Banks may charge up to 4 percent of the first $100,000 in your estate, with decreasing charges in increments to about 0.5 percent of estates valued more than $9 million.
Your estate will have to meet the minimum amount required to justify the use of a professional executor.
It pays to shop around.
Your estate planning attorney will be a solid resource, as all financial institutions have their own personalities, strengths, and weaknesses.
Family members often require less compensation or none at all.
Think carefully about the responsibilities of an executor.
This role includes identifying all assets in the estate, paying debts, and distributing inheritances according to the will.
If you are not sure what would be best for your family, discuss your situation and goals with your experienced estate planning attorney.
Reference: nj.com (November 5, 2019) “Should I choose a bank to be the executor of my will?”