“Surveys show that somewhere between 60 and 70 percent of Americans don’t even have a will,” says Patti Black, a CFP at Bridgeworth LLC in Birmingham, Alabama. “The surviving family members may end up spending more money to clean up the lack of planning than if the deceased person hired an attorney to prepare a will, power of attorney and advanced health care directive.”
Who will get what from your estate? Every state follows different rules for dividing property when there’s no will. Most often, your spouse will be the first priority, followed by children, grandchildren, parents and siblings.
2. Include clear instructions. Executors do not necessarily know about brokerage accounts, life insurance policies, online passwords, etc., Frisch says. Being organized and leaving detailed instructions will make it easier for your executor.
3. Make sure your executor is up to the job. Look for someone who’s honest, trustworthy, organized, responsible, and able to handle the potential stress and time commitment, Wojtkowski says. “They don’t need specific legal or financial expertise, but it’s helpful. More important is communicating effectively, making tough decisions, and keeping precise records.”
Frisch says, “In some instances, it may be better to have coexecutors, or professional help.”
4. Get the prospective executor’s consent and make the responsibilities clear. “Since settling an estate can be a long and involved process, probably the most important thing is to choose someone willing to perform all the various duties involved,” says Peter Palion, a CFP at Master Plan Advisory in East Norwich, New York.
Valecka says she may write a book about being executor to help her clients understand how much time and effort may be involved. For example, she needed to obtain an original marriage certificate to present to Social Security so the widow could switch to her late husband’s higher benefit. “Small things like original paperwork having to be ordered takes time.”
5. Consider the size of your estate. If you have $500,000 in total assets, naming a family member may be fine, perhaps with the help of an attorney, Bunio says. “But if we are talking $1 million or more, I would not name a family member as executor, but a lawyer/law firm. Or, name a family member with the stipulation that a lawyer must be hired.”
6. Suggest how to get help if hiring a lawyer is too costly. “Your executor could ask the court to find one for you or seek assistance from the state,” Bunio says. “I have heard of charities that help with this, as well as pro-bono firms.”
7. Finally, name an alternate, if you can. “It’s usually best to name a second individual as an alternate in case the first one cannot act due to disability or death,” Palion says.
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