Estate planning is an integral part of financial health; however, it appears to be often ignored. As per a study by Caring.com, the percentage of Americans with a will dwindled from 33% in 2022 to just 24% in 2025.
One substantial part of estate planning that gets insufficient attention is the choice of an executor-the individual given the responsibility of executing your last requests. This person is at the helm of financial affairs, interacts with beneficiaries, and ensures your desires are adhered to once you're no more. It's a hefty responsibility requiring careful selection.
The instinctive choice for many may be their spouse or eldest child. However, this isn't necessarily the wisest option. The ideal executor should demonstrate responsibility, attention to detail, and financial competence. The executor's role encompasses a significant amount of documentation, from tax filing, to debt settlement and asset distribution. A person who's methodical, articulate, and communicates effectively with beneficiaries can streamline this process.
Estate matters can often be delicate, and monetary or asset disputes can incite familial discord. In situations where choosing one child over another could stir resentment, a neutral party such as a trustworthy family friend or lawyer might be a preferable choice.
Proactive dialogue on estate plans can curtail unexpected shocks. Beneficiaries who understand your decision rationale are less likely to feel snubbed or neglected when the time comes.
Periodic review of your estate plan ensures the chosen executor remains the best selection for your requirements. For cases where a suitable family member or friend isn’t available, alternatives like banks, trust companies, or lawyers can assume the executor’s role making certain everything is executed legally and quickly. Whilst these services incur a fee, they offer an impartial, skilled person to oversee the estate, which can be invaluable.
It is sagacious to designate a standby executor in case your initial choice is unable or disinclined to serve. Picking an executor is a vitally influential decision in estate planning. The apt person can effectively implement your last wishes. Investing time in careful selection, and transparently conveying your decision, can better organize the estate and sidestep family disputes, providing you and your loved ones assurance your plan is soundly deliberated.
The views expressed in this article are those of Mitlin Financial Inc. They should not be misunderstood as investment, legal, or tax advice. Investment advisory services are provided by CWM, LLC, an SEC Registered Investment Advisor.