Choosing the Right Executor

Ifyou’re considering making a will soon, you must face the tough question of whoshould be your executor.  This decisionis important as your executor can affect how much tax your estate will pay ondeath and how efficiently your estate will be distributed.  You should wait to name an executor untilafter you’ve decided who will receive distributions and when and how they willreceive them.

Yourspouse may make sense as your executor because he/she will understand familydynamics and be sensitive to other beneficiary’s needs.  However, consider naming a co-executor ifhe/she lacks financial understanding.

Naminga child may make sense if the child has financial or business experience, butbe wary of hard feelings from other children.

Businessassociates will know about business assets that form a portion of the estate,but be careful of any foreseeable conflicts of interest.

Youcould hire an accountant or lawyer to bring business acumen to the table, oryou can add a provision in your will requiring the executor to seek the adviceof a professional.

Corporatetrustees are expensive but may be worth the cost for the trustee’s expertise.

Otherfactors that may be important when choosing an executor include the duration oftrusts, whether you have children from multiple marriages, and your network offriends and advisers. 

Finally, it’sprobably a good idea to choose an executor who lives in the state in which youlive and where your assets are located. 

See Tim Cestnick, Taxes: Pick the Right Person to Handle Your Legacy, The Globe andMail, July 17, 2013.