When choosing an executor or personal representative, many people consider it an honorary position and choose a family member. However, the executor is responsible for numerous important tasks including assembling and valuing the decedent's assets; filing income, estate and inheritance tax returns; paying taxes and debts; distributing assets to heirs; and accounting for the entire process. The task at hand is more than most people realize. Naming a professional executor takes the burden off of family members at a difficult time and eliminates the potential for conflict of interest. It also places an independent and accountable third party in charge to carry out the decedent's wishes. In evaluating candidates for settling your estate, look for the following characteristics:Availability: a strong corporate fiduciary will be available when needed; individuals may relocate or die.
Experience: choose a fiduciary with experience in settling estates to avoid on-the-job training.
Expertise: as indicated above, estate management involves a wide range of professional skills including accounting, investment management and tax planning.
Impartiality: the executor should not have a financial interest in the estate to assure that the beneficiaries' interests always come first.
Financial accountability: if a mistake is made during the estate settlement process, the executor should have the financial resources to be held accountable in order to protect the beneficiaries from financial harm.
Fees: an executor should be entitled to reasonable compensation but no more.