Chronicles of an Executor: Article #5
Selecting Your
Executor and Successor Trustee
Source: Apartment News Magazine
By Timothy Gorman
Real Estate Broker/CPA/Entrepreneur
One of the pivotal decisions in estate administration is the selection of the executor and successor trustee. These roles carry profound weight and significance, and the choosing requires careful consideration.
This series of articles began when, upon the passing of my father, Bill Gorman, I assumed both sets of responsibilities. My initial tasks were primarily related to my executorship duties, as outlined in the first article (Apartment News Magazine, September 2023). The second and third articles addressed concerns and considerations discovered during the 120-day waiting period, as required before fully executing the terms of a will.
To provide some clarity, let us begin by defining the two roles. An executor is an individual entrusted with the responsibility of managing the deceased’s affairs, including the distributing the assets, settling any debts, and fulfilling the provisions of the will. In contrast, a successor trustee operates within the context of a living trust. Upon the passing of the trust’s creator, known as the grantor, the successor trustee administers and settles the assets per the trust’s terms. Should the grantor, prior to death, become incapacitated or unable to make decisions, the successor trustee becomes responsible for managing the trust.
These responsibilities can be handled by a single individual or by separate appointees. However, having two or more individuals sharing these roles could lead to disagreements and increased expenses. Whether choosing one or more individuals, the selection process is critical.
The Right Person: Looking Beyond the Qualifications
Beyond assessing the qualifications, financial acumen, or legal savviness of a prospective executor and/or successor trustee, you need an individual willing and capable of diligently fulfilling one or both of these roles. Trust becomes the bedrock on which everything else is built; the selected individual should be someone you trust implicitly.
Honest Conversations: Setting Expectations
Once you have identified a candidate, the next step involves candid and forthright discussions. These conversations should leave no room for ambiguity. You must openly and fully communicate what being an executor and/or successor trustee entails. Lay bare the responsibilities, potential time commitments, and the intricacies that come into play. It is vital that your chosen candidate fully comprehends the magnitude of these undertakings.
Be aware, as well, that relying solely on the legal documents to convey your expectations may not suffice. Take it upon yourself to directly communicate your desires and requirements for your executor and successor trustee.
Readiness to Pivot: Flexibility Matters
While you may have diligently considered and engaged in open discussions with your chosen individual, it is crucial to remain adaptable. Life can be unpredictable, and the person you initially believed to be the right fit may encounter unforeseen circumstances or changes in their life situation that makes them less suitable for the task. Continuously revisit your decision and keep the communication channels open.
On a personal note, while Navigating the Turbulent Skies of Estate Administration, I have developed a deeper appreciation for the level of commitment and dedication demanded by the roles of executor and successor trustee. Not only does one need the time and energy required to handle all of the demands of these undertakings, you also must sustain a relentless commitment to detail, an unwavering focus on the financials, and a resolute grasp of the nuances of the deceased’s wishes and intentions.
The conclusion of the mandated 120-day waiting period marks the beginning of the genuine estate administration work. Much of the past four months has been devoted to laying a solid foundation for this undertaking. These preparations have included working with various professionals to collect and organize the financial documents, establish property values, and track and catalog the estate’s assets.
My next article will delve into how engaging professionals and attending to these details have readied me to navigate the complexities of estate administration with a sense of purpose and confidence.