Tuesday, September 26, 2017

Have you been asked to be an executor?

Has someone close to you asked you to be the executor of their will?  

To a friend or loved one, you might seem like the perfect person to be their executor. And while it may appear to be an honour, it is a huge responsibility. Before you agree to the job, here's what you need to know.

Estates big or small-it will be a lot of work.
- Any estate may have multiple properties, numerous possessions, extensive wealth or many beneficiaries.
- There may be numerous steps to get through before you can distribute any assets, including being responsible for taxes.

Be aware of potential conflicts
- If you are being asked to be an executor by a friend, you might want to consider why? In some circumstances, it could be to prevent family conflicts, in which case you could be on the hook to mediate some explosive discussions as to who gets what.

Are you ready for litigation? 
- If the beneficiaries don't like the decisions you've made, you might find yourself the subject of a lawsuit.

- There are no rules about how much an executor should be compensated, although the rule of thumb is typically 5%.
- Be sure to note that if the beneficiaries file a lawsuit, and it is found that you haven't used the estate funds the way they were intended, you could be liable to to repay the funds from your own pocket.
- Ultimately, you have to awknowledge that all your hard work could be for pennies.

The bottom line is that being an executor is a lot of work, before you take on the job be sure to consider all of the possibilities.
Talk to your Continuum II advisor today, we can help guide you in the right direction.

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