Selecting the right executor for your will or trustee for your trust is one of the most important decisions you will make during the estate planning process. These individuals may be responsible for managing your assets, paying debts and taxes, maintaining financial records, and distributing property according to your instructions.
Choosing wisely can help ensure your estate is handled efficiently, your wishes are honored, and the risk of conflict among your loved ones is reduced. Because every family and estate is different, it is important to carefully evaluate who is best suited for these responsibilities.
Understand the Roles of an Executor and Trustee
Before choosing someone, it is helpful to understand the difference between an executor and a trustee.
Executor
An executor, sometimes called a personal representative, is responsible for administering your estate after your death. The executor is usually named in your last will and testament and must typically be formally appointed by the probate court.
An executor’s responsibilities may include:
- Filing the will with the appropriate probate court
- Identifying, protecting, and valuing estate assets
- Notifying creditors and beneficiaries
- Paying valid debts, expenses, and taxes
- Maintaining accurate financial records
- Distributing remaining property to beneficiaries
- Closing the estate after administration is complete
The executor generally handles probate assets, which are assets that are not held in a trust or transferred through another method, such as a beneficiary designation or joint ownership. The American Bar Association’s guidelines for executors and trustees provide additional information about the duties involved in estate administration.
Individuals serving as executors may also have tax-related responsibilities. IRS Publication 559 explains that a personal representative may need to obtain an employer identification number for the estate, file applicable tax returns, pay taxes, and distribute the remaining assets.
Trustee
A trustee manages assets held in a trust according to the instructions contained in the trust document. A trustee may begin serving during the trust creator’s lifetime, after the creator becomes incapacitated, or after the creator’s death.
A trustee’s responsibilities may include:
- Managing trust accounts and property
- Investing assets prudently
- Making distributions to beneficiaries
- Following the instructions in the trust
- Keeping detailed records
- Providing accountings or reports when required
- Filing applicable tax returns
- Communicating with beneficiaries
Unlike an executor’s duties, which generally end when probate is complete, a trustee’s responsibilities may continue for many years. This is especially common when a trust holds assets for minor children, beneficiaries with disabilities, or beneficiaries who receive distributions over time.
Individuals considering a trust can learn more about the available options through Kelley Law Firm’s trust planning services and trust administration services.
Qualities to Look for in an Executor or Trustee
Choosing the right person or professional entity requires careful consideration. Family relationships are important, but they should not be the only factor in your decision. The person you select should have the ability, judgment, and willingness to carry out the role properly.
1. Trustworthiness
Your executor or trustee may have access to bank accounts, investments, real estate, personal property, and sensitive financial information. The person must be honest, dependable, and willing to place the interests of the estate or trust ahead of personal preferences.
Executors and trustees are fiduciaries, which means they are expected to act responsibly and in the best interests of the estate, trust, and beneficiaries.
2. Organizational Skills
Administering an estate or trust requires attention to detail. The person may need to organize financial statements, court filings, tax documents, property records, bills, beneficiary information, and deadlines.
Someone who is organized and comfortable managing paperwork may be better prepared to complete these responsibilities accurately and efficiently.
3. Financial Competence
An executor or trustee does not necessarily need to be an accountant or financial professional. However, basic financial knowledge can be extremely helpful.
The person should be comfortable reviewing account statements, tracking expenses, paying bills, working with financial professionals, and understanding when professional assistance is needed.
4. Impartiality
Executors and trustees often work with several beneficiaries who may have different expectations or competing interests. Family disagreements can become more difficult when the person managing the estate is perceived as favoring one beneficiary over another.
Choosing someone who can remain fair, neutral, and focused on the estate planning documents may help prevent misunderstandings and disputes.
5. Availability and Willingness
Administering an estate or trust can require significant time and effort. Probate administration may take several months or longer, while a trustee may serve for many years.
Before naming someone, consider whether that person has the time, health, location, and personal circumstances necessary to serve effectively. You should also speak with the person in advance to confirm that they are willing to accept the responsibility.
6. Ability to Communicate Clearly
The executor or trustee may need to communicate with beneficiaries, attorneys, accountants, financial institutions, courts, and government agencies. A person who communicates clearly and responds promptly can help keep the administration process moving and reduce uncertainty among beneficiaries.
7. Sound Judgment
Not every issue can be anticipated in an estate planning document. Executors and trustees may need to make decisions regarding property sales, investments, repairs, expenses, distributions, or professional services.
The person you choose should be capable of evaluating information carefully, seeking professional advice when appropriate, and making reasonable decisions.
Consider Family Dynamics
A close family member may seem like the natural choice, but family relationships can create complications. Naming one child instead of another may cause resentment, particularly if there are existing disagreements among siblings.
In some situations, naming co-executors or co-trustees may appear to be a fair solution. However, requiring two people to agree on every decision can cause delays or conflict. Before appointing multiple fiduciaries, consider whether they communicate well and are likely to work together effectively.
For blended families, complex beneficiary arrangements, or families with a history of conflict, selecting a neutral professional may provide greater stability.
Consider Professional Assistance
A family member or friend may not always be the best choice. Professional fiduciaries, banks, trust companies, and qualified attorneys may be able to serve as executors or trustees.
A professional fiduciary may offer:
- Experience with estate and trust administration
- Greater impartiality
- Consistent record-keeping
- Knowledge of legal and financial procedures
- Long-term availability
- Reduced pressure on family members
Professional assistance may be especially valuable when an estate includes business interests, investment properties, significant assets, complex tax matters, beneficiaries with special needs, or property located in multiple states.
There may be fees associated with hiring a professional fiduciary, but professional management can help reduce administrative errors, missed deadlines, and family conflict. The American Bar Association notes that professional fiduciaries may be appropriate when an estate is financially complex or when appointing a family member could contribute to interpersonal disputes.
Name a Successor Executor or Trustee
It is wise to name at least one successor executor or trustee in case your first choice is unable or unwilling to serve.
A person may become unavailable because of illness, incapacity, relocation, family obligations, or death. Someone who is willing to serve today may also decide later that they are no longer comfortable accepting the role.
Naming a qualified backup can prevent unnecessary delays and reduce the likelihood that a court will need to select someone. Your estate planning documents should clearly state who will serve if your first choice cannot act.
Discuss Compensation
Serving as an executor or trustee can require considerable time and effort. Depending on state law and the terms of your estate planning documents, the person may be entitled to reasonable compensation.
Discussing compensation in advance can help prevent confusion. Some family members may choose to serve without payment, while others may expect to be compensated for the time and responsibility involved.
Your attorney can help explain how fiduciary compensation is addressed under applicable law and whether your documents should contain specific instructions.
Kansas residents can review the state’s probate statutes through the Kansas Probate Code. Because legal requirements depend on the circumstances of each estate, statutory information should not replace personalized legal guidance.
Communication Is Key
Once you have selected an executor or trustee, discuss your decision with that person. Make sure they understand why you selected them, what the role may involve, and where important documents and information will be located.
You do not necessarily need to disclose every detail of your estate plan, but the person should know:
- Where the original will or trust is stored
- How to contact your estate planning attorney
- Where financial and property records can be found
- Whether you have specific concerns or family circumstances
- Who has been named as the successor
- Whether professional financial or tax advisors should be contacted
Clear communication can prevent surprises and give the person an opportunity to ask questions before the responsibility begins.
Review Your Selection Regularly
Choosing an executor or trustee should not be a one-time decision. Your original choice may no longer be appropriate as relationships, health, finances, and family circumstances change.
Review your estate plan after major life events, including:
- Marriage or divorce
- The birth or adoption of a child
- The death or incapacity of a named fiduciary
- A significant change in assets
- A family conflict
- A move to another state
- Changes in business ownership
- A named executor or trustee becoming unwilling to serve
Periodic reviews can help ensure that the people named in your documents remain capable, available, and appropriate for the role.
Final Thoughts
Choosing the right executor or trustee is just as important as creating the will or trust itself. The right person can help your estate or trust operate efficiently, reduce stress for your family, protect beneficiaries, and ensure your instructions are followed.
Take time to evaluate potential candidates carefully. Consider their trustworthiness, organizational skills, financial knowledge, impartiality, availability, judgment, and ability to communicate. When appropriate, consider whether a professional fiduciary would provide greater protection and stability.
An experienced estate planning attorney can help you understand these roles, evaluate your options, and prepare documents that clearly explain how your estate or trust should be managed.
Kelley Law Firm helps individuals and families throughout Kansas and Missouri create thoughtful, personalized plans for the future. Explore the firm’s estate planning services or contact Kelley Law Firm to schedule a consultation and receive guidance on selecting an executor, trustee, or successor fiduciary.