Making or implementing a will is a serious issue, and one of the most critical choices is who to appoint as the executor. He or she is responsible for fulfilling the last wishes of the decedent, from giving away assets to settling debts and taxes. One of the questions that estate planners commonly get asked is, “Can a beneficiary be appointed as the executor of a will?” Luckily, the answer is straightforward and centres on key points for people writing out their wills.
Understand the Role of the Executor
The executor’s function in a will is central to estate management. His/her duty involves managing the late individual’s estate, ranging from making up a list of possessions, settling outstanding bills, seeking probate when necessary, and dividing up the estate as indicated in the will. It is a faithful role with administrative skills and a humongous amount of accountability.
The choice of the proper individual for this role is of utmost significance. The majority of people would opt for a close, trusted family member, close friend, or professional advisor. What if the person of trust is a beneficiary? Is that legal?
Executors Serves as Beneficiaries—It’s Absolutely Legitimate
The response is affirmative. In all countries, Australia included, it is legal and generally standard practice for the executor to also be one of the beneficiaries under the will. Provided the will specifies clearly and unequivocally the sharing of assets, there can be no conflict of interest. A surviving adult child or surviving spouse is generally appointed both executor and one of several beneficiaries in smaller estates.
This is a system that would be likely to assume control, since executors are appointed in virtue of being in a position to manage the estate with care. Furthermore, natural order informs us that individuals nearest to the deceased may also comprise individuals who will enjoy the estate. Issues arise only when an executor is imbalanced in performing duties with some of the beneficiaries who request a higher share of inheritance. Clarity of terms under the will prevents such situations and allows for simple administration.
Selecting the Ideal Executor for Your Estate
Assisting clients in the selection of an executor is one of the crucial functions of professionals such as Velocity Legal. The individual who is chosen must be completely trustworthy, since working with personal funds and legal realities is a serious endeavour. Honesty and trustfulness are not negotiation tools. Last but not least, the executor must be somewhat organised and familiar with working with paper records and adhering to deadline timetables.
Either being legal- or financial-savvy is not strictly a requirement, though being detail- and even-keel-oriented can make things a whole lot simpler. The second critical factor is availability and willingness on the part of the nominee. The role of an executor is demanding, and the nominee ought to comprehend and accept the job as a complete package. For complicated estates, people might desire a professional executor such as an attorney or trustee company to forestall potential contestations or disputes. Other people also prefer naming more than one executor—for instance, a close relative and expert—to have an emotional as well as functional division of labour.
Preparing Wills with Care and Accuracy
It is the responsibility of estate planners to ensure that words in the will are clear, especially where the executor is also a beneficiary. Brief words that cannot be construed otherwise reduce chances of conflict, especially where there are multiple beneficiaries. Defining in clear terms how the estate will be shared and who will be the executor makes life easier for all parties.
Finally, executor and beneficiary convergence infuses pragmatism and trust into the estate planning. For personalised advice on drafting wills that best suit your clients’ individual circumstances, look into professional legal services or sites that make it simpler.