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What are the benefits of appointing a bank as the executor?

On Behalf of | Jul 8, 2024 | Estate Administration |

Most of the time, being an executor is no walk in the park. Aside from completing tasks related to administering the estate, the role involves other duties that require extensive patience, time and thoroughness. All in all, these responsibilities can be overwhelming and a person with no experience in this type of work might be vulnerable to making severe and costly mistakes.

Some people prefer to appoint banks as their executors to address these possible issues. Entrusting an estate to someone who is not a family member may seem inappropriate, but it can lead to various benefits, such as:

  • Accessing experience built through years or even decades of proven work which only comes with offering estate administration services for a long time
  • Expediting the process more efficiently
  • Implementing industry-standard practices and policies that only established financial institutions stand by
  • Having an impartial approach to the administration process

Still, choosing a bank as an executor can come with additional costs. To pay for services, a bank may impose charges usually waived by relatives appointed for the role. Additionally, these banks could have size requirements, evaluating the estate’s value before accepting jobs. This step may be necessary since some estates may be too small to cover their service fees.

Getting help when necessary

Administering an estate can be challenging, especially for family members still grieving the loss. In these instances, it can be more reasonable to entrust someone outside the family to become the executor.

But before finalizing any decisions, consider seeking legal counsel to determine if there are other viable options. The most appropriate course of action can vary depending on the family’s circumstances, the estate’s size, details and other factors relevant to the situation.