When you create your estate plan, you need to name an executor. You will need someone you can trust to carry out your wishes fairly and transparently. The obvious choice might be someone in your family. After all, you know them better than you do anyone. However, this may not be the best choice. It may be better to use a third-party.
- Experience counts: The more you do something, the better you get at it and the easier it becomes. When someone executes an estate for the first time, it will be a significant learning experience. They may make errors. A financial institution or finance professional will have done it many times before. They will be more efficient and less likely to make mistakes.
- It reduces the chance of a family fallout: Money can do strange things to people. Many families have fallen out over the distribution of an inheritance. If you choose a family member as an executor, it could lead to others suspecting them of self-dealing.
- Your family may not have time: If your children are busy working and raising their families, they may not have the time to carry out an executor’s duties. It is a considerable burden to put on anyone, which is why you might be better paying a professional.
While many family members do successfully execute their loved ones’ estates, it is not something that everyone can do well. It may be kinder to give the responsibility to a finance professional or institution. An estate planning attorney can help you make a suitable choice. They can also help you leave your estate in a way that makes it simpler for your executor to manage.