Executor(s) & Trustee(s): An executor manages your estate after your death, a trustee will manage your estate during your life and after death.

EXECUTOR(s)

An Executor is a person or persons who you select in your Will to carry out all of your arrangements after your death. Their duties include:

• Handling your funeral and burial arrangements
• Paying your debts
• Distribution of your assets to your beneficiaries
• Representing you and your your estate in all matters

The executor(s) of your estate, usually appointed in your will, will administrate your will after your death.

Things to know:

• Executors will make sure your instructions are followed.
• The person chosen should be trust worthy and organized.
• You cannot choose a minor, a felon, or someone that is not a United States citizen as an executor.
• The executor does not need to be an attorney or accountant to administrate your will.
• You will also want to name an alternative person as executor, because if the person you choose decides not to be involved or dies before your estate in handled, then the state will appoint the next executor. This may or may not be someone you would want handling your estate, so be prepared!
• As far as assigning a second executor, you can have a substitute executor or a partnership executor (which means they both have to administrate your will together). However, every executor has to sign each document, which could mean sending things to co-executors in several states and potentially racking up a larger legal bill.
• Depending on the state your living in at the time of your death, your estate may have to pay the executor to administrate your will.

TIME OF SERVICE

The executor will have to administrate the will, and filing of federal estate taxes and other such issues. So the time frame may be few months to 2 years. Taxes for the deceased may be sent in to the IRS for the following two years. Check with your financial planner, tax accountant or IRS for further details.

TRUSTEE(s)

The trustee, is the person who manages the trust property. See Living Trusts.

TIME OF SERVICE

The trustee duty can last for decades and is far more important. As with an executor, you will want to assign a back-up trustee, in case your first choice as trustee in unwilling or unavailable. Whether choosing an individual or corporate trustee, “the ability to have flexibility in the trustee is critical, and when planning you should envision as many scenarios as possible because choosing an individual trustee, you should remember that the appointee could play a role during their lifetime as well.

CHOOSING

Choosing an executor and trustee requires logic over emotion! The person you choose will have to handle a lot of difficult questions that they may not be able to answer, like “why did they leave ME the car?” for example. This will be extra hard for the executor if they’re family. However, family would be more likely to follow your wishes more closely than a stranger.

Many people choose family members, while others pick a trusted friend or advisor. No matter who you decide on, a financial advisor could give you more information on the executor’s and trustee’s duties and responsibilities.

ESTATE CLOSING

Estates close when the executor has paid all debts, expenses, and taxes; received tax clearances from the IRS and the state; and all assets on hand have been distributed. Trusts terminate when a date or event described in the document occurs, such as the death of a beneficiary or the date the beneficiary attains a stated age. Some states require a petition to be filed in court before the assets are distributed and an estate or trust can be closed. When such a formal proceeding is not required, it is nevertheless good practice to require all beneficiaries to sign a document, prepared by an attorney, in which they approve of your actions as fiduciary and acknowledge receipt of assets due them. This protects the fiduciary from later claims by a beneficiary. A final income tax return must be filed and a reserve kept back for any tax that may be due.

When all debts (including taxes) are paid and assets are disbursed, the estate may be closed. Some states require a petition to be filed in court before the assets are distributed and an estate or trust can be closed. Have your executor(s) and/or trustee(s) require all beneficiaries to sign a document, prepared by an attorney, in which they approve and acknowledge receipt of assets due them. This will protect your executor(s) and/or trustee(s) as well as your estate (from possible legal action).

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FINDING A FINANCIAL ADVISOR
A financial advisor can ensure you’re saving enough to meet all your immediate and retirement needs. Find out what’s best for you and your retirement goals! Learn more about the different asset allocation types, explore the areas above and fill out our on-line form to find a certified financial advisor in your area.