Choosing an Executor
Obligations and responsibilities of an executor are significant. Their decisions can be monumental.
Yet it is common for will makers to nominate a family member as the executor of the will, without thinking about whether that person has the capabilities necessary to carry out their duties.
The executor should act with care and within a reasonable time frame. The role of an executor occurs rarely during a lifetime for a family member, so it is not a typical skill set. Guidance from specialists will assist with the legal and taxation maze, as well as avoiding costly decisions.
Should the investments be sold or distributed? What are tax consequences of each decision? Is there a risk of the share market falling to impact on a portfolio to the detriment of a (different) beneficiary? Is there sibling rivalry?
Choosing one executor only from family can sometimes create an environment that causes financial loss and increased emotional stress for the whole family.
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