As you work on your estate plan, do you have an executor for your will? CNBC explains the importance of having an executor that you can trust.
Here are some questions to ask yourself when choosing an executor.
Is your choice organized?
Your estate refers to everything that you own, including your real estate, possessions and financial accounts. When choosing an executor, you must trust that the person will carry out your wishes after you die. It is more than just trust, however. You need to be sure that the person has the organizational skills to handle the estate. The process takes time, so the person you choose has to know how to juggle his or her time.
Does your choice have financial experience?
While an executor does not have to have financial experience, it does help in the long run. Without financial experience, he or she may not understand how to deal with estate taxes, inheritances and more. Part of your will explains what to do with the money and assets that you have. He or she also needs to deal with legal fees.
Can your choice commit the time necessary?
Keep in mind that settling an estate can take about 16 months. Does your choice have the time necessary to commit? You may choose someone you trust and has experience in finance, but if his or her job demands extra time or has young children, there may not be enough time dedicated to your estate.
Discuss the idea of being an executor with your choice. Your choice can help you decide whether h or she has the time to dedicate to your estate.