A couple of weeks ago I wrote an article about how to help your loved ones or executor find the information they need in case you have an accident. It is important to have that set up, but I had a few people ask me about what an executor actually does. I hope to answer that and what a guardian does as well as both will be involved in case of an accident.
What is an Executor and how should I choose one?
An executor is the legal term for someone who carries out the direction of a will and handles your financial affairs after your death. Usually the person (or company) is selected and named in the will, a topic which you should discuss with your family and lawyer before you pass on.
Being an executor is a heavy responsibility, so you will want to choose someone who you trust and is well organized. You may want to state in the will that the executor can hire someone whose expertise will help process (probate) the will efficiently. This is desirable because you will want your estate (assets) to go to the people you love or the organizations you are supporting as quickly as possible.
Simple estates consisting of just a home and a few other s assets can often be done by a sibling or child that you trust to do the job well. They should be aware that they need to track the time and money spent on probating a will, as they should be reimbursed expenses for the work involved. Dealing with creditors and various investments can be particularly time consuming and frustrating.
If an estate is more complex, involving a business, farm, family cottage, or many beneficiaries, your estate may be better off with a family lawyer or estate planning/trust services agency being appointed executor, although this does mean an increase in cost.
Whatever the case, the executor should live close to the deceased and be somewhat familiar with the deceased’s situation, especially if there is a business or farm involved. Just going the cheapest route, free, by appointing a family member may not be the best case for probating the will efficiently and causing the least amount of stress for the family. Remember that you and your family may get what you pay for. With complex estates, hiring some expertise to help make up the will and to probate it may help everyone the most in the long run.
Choosing a guardian
A legal guardian is a person who has the legal authority (and the corresponding duty) to care for the personal and property interests of another person, called a ward. In this case I am specifying a guardian as the person who will care for your children in case something happens to you.
Choosing who will be a guardian for your children will probably be a more difficult and emotional decision than choosing your executor for your assets. Who you choose will impact your children for the rest of their lives. In choosing your guardian, you will want to make sure that you also have a back up as well, in case your original choice is unable to do it.
You want to make sure your choice of guardian is physically able to take care of your children, able and willing to teach similar values to your own, and able to handle money allocated to the children’s use and education. You may want to appoint a trustee to care for any assets going to the children and have a separate guardian responsible for the care of your kids, just to break up the responsibilities of money and child care. You should also review your selection every 5 years or so to make sure your choices are still capable and compatible with your desires for your children.
A lot of people make the Executor and Guardian the same person, but many lawyers suggest that the responsibilities be separated, especially with complex estates which can take years to probate. You want your guardian to focus on the kids, and your executor to focus on probating the will and estate.
These are difficult topics, but are essential to taking care of your loved ones and the estate that you have worked so hard to build. Taking the time to do up a proper estate plan and will can give you peace of mind that your loved ones will be cared for even when you are no longer there to do the job yourself. Jerry
Through sad experience my family has learned that no-one should wait until they are older to take care of getting a will or choosing guardians. Whether by accident or illness, things happen that we are never prepared for, but by thinking about and taking care of a will and guardianship before hand, everyone can save their family some unnecessary worry during a very emotional event. I can't stress the importance of this enough. it may seem morbid, bu in reality shows your family how much you love them be not placing this type of burden on them during a time of mourning.
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