Estate planning will require you to make numerous decisions about winding up your affairs after your passing. One of the most important decisions you will make when creating your estate plan is choosing an executor in your will. When choosing an executor, you should consider the duties and obligations that person will carry out to administer your estate after your death. Furthermore, you should know the frequent mistakes that people make when choosing executors to help you make an effective decision.
What Does an Executor Do?
In Texas, an executor has several duties during the estate administration process. Some of the executor’s primary obligations include:
- Filing a decedent’s will for probate or applying for an expedited probate/estate administration process
- Inventorying and securing estate assets
- Filing tax returns and paying the decedent’s debts and final income taxes
- Filing and paying applicable estate taxes
- Notifying creditors and beneficiaries of the estate administration
- Distributing remaining estate assets to beneficiaries after payment of debts, taxes, and estate administration expenses
An executor owes fiduciary duties to the estate and its beneficiaries to act in the estate’s best interests and to discharge their duties prudently, including by seeking professional advice or assistance when necessary (such as legal or accounting services).
Who Can (and Can’t) Serve as an Executor in Texas?
An executor of a Texas estate must meet several eligibility criteria, including:
- At least 18 years of age
- Of sound mind (i.e., not legally incapacitated)
- No prior felony conviction (unless civil rights have been restored)
Furthermore, Texas courts retain the authority and discretion to disapprove of an executor if they find an individual unsuitable or otherwise disqualified to serve as the executor of a decedent’s estate.
An executor who does not reside in Texas may have to appoint a local agent to receive service of process or other formal notice delivered to the executor or the estate.
Qualities to Look for When Selecting an Executor
An individual may have several people they consider for executor of their estate, including close family members, friends, or professionals like an attorney or financial advisor. Some of the characteristics that one should consider when deciding on an executor include:
- Willingness to serve: An individual should avoid selecting someone for executor if that person cannot or will not serve.
- Organizational ability: Executors should have good organizational characteristics as estate administration can involve managing various assets and deadlines.
- Comfort with legal and financial matters: An executor should have experience and comfort with handling legal and financial issues. An individual does not necessarily need an educational or professional background in law or business but should have the ability to work with professional advisors to address complex legal and financial matters.
- Ability to remain neutral and conflict management skills: When considering a family member for executor, a person should also think about whether the individual can remain neutral and can manage conflicts among other family members should disputes arise during estate administration.
Common Mistakes People Make When Nominating an Executor in a Will
Some of the most frequent mistakes that individuals make when selecting an executor in their will include:
- Nominating co-executors who have personal animosity
- Picking a family member out of emotional obligation rather than the family member’s suitability
- Not informing the selected individual
- Failing to name a successor executor if the primary individual cannot or will not serve
- Not considering the option of selecting an independent legal or financial professional to handle a complex estate or significant intrafamily disputes
Contact Our Estate Planning Law Firm Today for Guidance
Choosing an executor to carry out your will after your death can become a critical decision during the estate planning process. Contact Guest & Gray today for a confidential consultation with an estate planning attorney to learn more about the factors you should evaluate when considering who to select to serve as the executor of your estate after your passing.
