When it comes to our clients and their estate planning, most of them want to make sure that their children are treated equally. To that end, a typical client leaves their property in equal shares to their kids. But what about naming an executor (aka the person in charge of administering the estate)? Should parents writing an estate plan name multiple children as co-executors?
Our advice is a resounding NO! An executor has many duties and responsibilities. They have to attend a court hearing, secure property, pay creditors, and distribute what’s left to the estate beneficiaries. When multiple people are named as executors, gridlock is a common result. Even in situations with a great family dynamic and siblings who get along, co-executors are often tied at the hip. The other kids aren’t left in the lurch, though. As beneficiaries, they are entitled to information about how their sibling is administering the estate.
To break the tie, many clients choose their child with the most financial acumen as executor. If everything else is equal, birth order as a default hierarchy works too. Make sure you aren’t setting your family up for unnecessary conflict by establishing a clear order of individual executors.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, specific tax, legal or accounting advice. We can only give specific advice upon consulting directly with you and reviewing your exact situation.
