Inheriting Risks as Executor of the Will

by M-Gillies

To avoid putting the burden all on one person, you could name multiple executors. Avoid two as a stalemate could occur and go with three. For modest estates more than one executor is not necessary and not wise.

If, out of everyone in your family or inner social network, you’re the kind of person who is organized, responsible and financially fiscal, well, you could be painting yourself a sign which reads, I’m your guy or gal in the event that someone needs an executor. Chances are, at some point, it may happen. It could be from a spouse, parent or close friend, and if you’re the kind of person who would be inclined to help, there are some important things you should know.

The task of settling an estate isn’t necessarily an easy affair. In fact, it can become very complicated and time-consuming, requiring responsibilities such as managing investments, selling real estate, dealing with upset beneficiaries and in some cases, making funeral arrangements. The task can be daunting and time-consuming, however, it also comes with another particular form of baggage. Executors become personally liable that the process of managing someone’s estate is done properly and timely.

So if you’re the type of person who can’t say no to being an executor, here is a list of some of the complications and risks that may arise at your becoming an executor:

Complications can arise in the event that:

* There are many beneficiaries and they are difficult to locate;

* The deceased owned a business;

* The deceased had a lot of investments and debts;

* The will includes a trust;

* The will is challenged by someone who feels unfairly left out of the will.

Risks of being an executor:

* The estate administration needs to be commenced and completed within a reasonable frame of time; failure to do so can see the executor being liable for any financial loss beneficiaries experience.

* As executor, it will be your responsibility to protect the assets of the estate; failure to do this will hold the executor personally liable for any damage to property that has not been properly secured or insured.

* The executor will be responsible with distributing the assets of the estate to the correct beneficiary; failure to distribute correct payments or correct distributions will see the executor personally liable.

* It is the responsibility of the executor to ensure that payments to all creditor accounts, including any taxation liabilities are paid. As executor, you are personally liable to make these payments.

Read more:

Risks of Being an Executor

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