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Choosing the Right Executor Part 2: Breaking Down the Options
Published Date : July 31, 2018
In Part One of this series, we explored the six key qualities and characteristics to consider when selecting the executor and successor trustee for your estate. In Part Two of this series, we will next explore the various types of executors and successor trustees available. You may be surrounded by loved ones and have many close friends, or you may not have anyone who immediately comes to mind. When reviewing your options, it is important to remember the process of administering an estate should not be taken lightly, as it is a duty that you are placing upon another party.
Keeping the key considerations in mind, below is a breakdown of the 4 most commonly used options for estate executors and successor trustees.
- A trusted relative could be any one such as a parent, sibling, child, niece, grandson or distant cousin. When considering a relative, your age and the age of the relative should always be considered. It is not constructive to name someone who may not be available in the future when you pass away. In addition, you should always consider family dynamics when naming one relative over another, as it benefits your plan to have an efficient and drama free estate administration process.
- A trusted friend is someone you feel comfortable sharing your personal and financial information. They may already know quite a lot about you, simply by being close to you through the years. But a friend may not have full visibility into your personal financial matters (or family dynamics), so nominating a friend should be done delicately as they will have full access to all your information – both personal and financial.
- There are two professional options for estate executors / successor trustees. The first is a Professional Private Fiduciary, who is someone entrusted with safeguarding your interests and ensuring your wishes are carried out at end of life, as well as administering your estate after death. Professional private fiduciaries support seniors, persons with disabilities and minors, and often work in tandem with the courts in situations where their services are necessary. From an estate perspective, professional fiduciaries handle the full estate administration, including the distribution of assets to your heirs. In some estate plans, their role continues well after death by continuing to act as trustee of any residual trusts resulting from one’s estate plan. When naming a professional fiduciary, the age and business succession plan of that professional should be carefully reviewed, as you do not want to hire someone who will retire before your death.
- Corporate Trustees are typically either a trust company or the trust department of a bank or brokerage firm. Importantly, the company is named in your estate plan, but the actual person or people within that company who handle the final estate administration can vary. Often, you may never know or speak with the live people/persons who will handle your estate at your death. And, while a corporate trustee solves the issue of administering your assets after death, they generally do not get involved in end of life matters.
As with any sort of plan, estate plans change, just as tax and estate laws change. As such, estate plans must be reviewed periodically to account for changes in law, your personal situation, and the viability of any named successor trustees and executors. Who you name today may not be appropriate in the future. Finally, this article series only touches the surface of what to consider when nominating a successor trustee and executor; therefore, please consult with your Sand Hill Wealth Manager to take a deeper dive into your personal estate needs.
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All video presentations discuss certain investment products and/or securities and are being provided for informational purposes only, and should not be considered, and is not, investment, financial planning, tax or legal advice; nor is it a recommendation to buy or sell any securities. Investing in securities involves varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular client’s financial situation or risk tolerance. Past performance is not a guarantee of future returns. Individual performance results will vary. The opinions expressed in the video reflect Sand Hill Global Advisor’s (“SHGA”) or Brenda Vingiello’s (as applicable) views as of the date of the video. Such views are subject to change at any point without notice. Any comments, opinions, or recommendations made by any host or other guest not affiliated with SHGA in this video do not necessarily reflect the views of SHGA, and non-SHGA persons appearing in this video do not fall under the supervisory purview of SHGA. You should not treat any opinion expressed by SHGA or Ms. Vingiello as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of general opinion. Nothing presented herein is or is intended to constitute investment advice, and no investment decision should be made based solely on any information provided on this video. There is a risk of loss from an investment in securities, including the risk of loss of principal. Neither SHGA nor Ms. Vingiello guarantees any specific outcome or profit. Any forward-looking statements or forecasts contained in the video are based on assumptions and actual results may vary from any such statements or forecasts. SHGA or one of its employees may have a position in the securities discussed and may purchase or sell such securities from time to time. Some of the information in this video has been obtained from third party sources. While SHGA believes such third-party information is reliable, SHGA does not guarantee its accuracy, timeliness or completeness. SHGA encourages you to consult with a professional financial advisor prior to making any investment decision.
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