World 08-07-19
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SENIOR LIVING | ESTATE PLANNING<br />
What Could Possibly Go Wrong? Choosing the Wrong Executor<br />
Among my workshops my clients most<br />
appreciate is the one called “Thrills, Chills, and<br />
Probate-Related Horror.” The probate process<br />
can seem deceptively simple to people who’ve<br />
never been through it. But in probate, seemingly<br />
minor errors or omissions can have major<br />
consequences – delays that drag on not just for<br />
months, but for years; signifi cant dollars that could<br />
have made life more pleasant for the beneficiaries<br />
expended on legal fees or court battles; and,<br />
worst of all, permanently damaged relationships<br />
among family members. So much can go wrong<br />
that, as an estate-planning attorney, I’m passionate<br />
about educating the unwary about the pitfalls that<br />
surround the probate process.<br />
By Claudia Pringles, Esq.<br />
Among the most common source of problems in probate<br />
is the will-maker’s choice of executor – or, rather, the process<br />
the will-maker used to make that choice.<br />
First, let’s clarify some of the terminology. “Probate” is<br />
the court-supervised process of determining the final destination<br />
of the assets of a person who has passed away, such as<br />
finding the deceased person’s assets and determining their<br />
value; paying the deceased’s outstanding debts and taxes;<br />
identifying the rightful beneficiaries and ensuring they<br />
receive the amount due them. The driver of the probate train<br />
is the Executor, who is nominated for this office in the will of<br />
the deceased, then formally appointed by the probate judge<br />
as the probate process begins.<br />
WHAT DOES AN EXECUTOR DO?<br />
The Executor is legally responsible for the many tasks<br />
that make up the probate process. He/she must understand<br />
probate law well enough to be able to comply with it yet<br />
have enough humility to get expert help (paid for out of the<br />
estate) regarding legal and/or financial areas as needed. The<br />
Executor is responsible for filing a variety of documents<br />
with the court properly and on time; for all communications<br />
regarding the affairs of the deceased and the probate process;<br />
for keeping excellent records of work performed and<br />
information gathered, including detailed financial records.<br />
The Executor must also adopt an appropriate, respectful<br />
demeanor when dealing with the probate judge and other<br />
court officials. Given the many responsibilities that come<br />
with this office, a good Executor comes supplied with good<br />
organizational skills and a great deal of patience.<br />
Executors are nominated in the Last Will and Testament<br />
of the person who passed away and formally appointed by a<br />
probate judge as part of the probate process.<br />
CHOOSING AN EXECUTOR<br />
Who makes a good executor? An executor has one job:<br />
to lead the charge with probating your estate through the<br />
court while remaining loyal to your wishes and being fair<br />
to your beneficiaries. As the list of duties above suggests, a<br />
good executor is someone who is organized, fair-minded,<br />
responsible, and has the time to do the work.<br />
It’s not uncommon for clients to walk into their estateplanning<br />
attorney’s office with the assumption that they<br />
had to finish a self-imposed homework assignment before<br />
they’ve even said “Hello.” More often than not, new clients<br />
come to my estate-planning practice with a list assigning<br />
individuals to key estate-planning roles from Executor to<br />
Trustee. Almost without fail, the roles will be assigned to<br />
their children, and will be assigned by birth order, from<br />
eldest to youngest, without regard to the individual’s<br />
strengths, weaknesses, or willingness to undertake their assigned<br />
job. It’s as if they were living in Downton Abbey, with<br />
the rules of primogeniture in force.<br />
Let’s take a fictional family, Mr. and Mrs. Traditional. The<br />
Traditionals have three children: Peter the Ph.D. Physics<br />
Professor, Dana the Doctor, and Eddie the Electrician. The<br />
Traditionals announce they’ve decided to name Peter the<br />
Executor, Peter as their alternate agent for Powers of Attorney<br />
and Advance Directives, and Peter as Successor Trustee.<br />
AS THE PROBATE TURNS...<br />
Never mind the wisdom, much less the fairness, of asking<br />
one person to do all these roles, which would likely occur<br />
close in time. Peter could find himself as: the agent under<br />
his incapacitated parent’s power of attorney and Advance<br />
Directives; the trustee of their trust; and, after the parents’<br />
death, the executor.<br />
Back at the planning stage, would Peter make a good<br />
choice for executor?<br />
As a physicist with a specialization in black hole theory,<br />
Peter is surely smart enough to figure out how to do probate.<br />
His parents admit, however, that Peter tends to be<br />
arrogant, thinks he has all the answers, is unlikely to ask<br />
for help, and would refuse<br />
to step down from the role<br />
of Executor no matter how<br />
overwhelmed he was nor<br />
how poorly or slowly he<br />
performed the job. While<br />
Peter has infinite patience<br />
calculating Absolute v.<br />
Apparent Magnitude, with<br />
other human beings – not so<br />
much. He doesn’t get along<br />
well with his family members<br />
– especially his siblings.<br />
The Traditionals’ secondeldest<br />
child, Dana, also has<br />
some characteristics that<br />
may not be ideal for an<br />
executor. Dana is not financially<br />
responsible and lives<br />
way above his means. He<br />
struggles with keeping his<br />
finances organized and paying<br />
bills on a timely basis. As<br />
one of the most important<br />
responsibilities an executor<br />
has is managing the finances of the decedent, including<br />
clear, detailed, accurate record-keeping and the timely<br />
paying of bills, increasing the amount of such responsibility<br />
Dana must handle will almost certainly overwhelm him.<br />
Finally, there is Eddie. Eddie has been an electrician for<br />
20 years. He runs his own successful business, including<br />
managing its finances. He deals with many customers and<br />
other professionals and has good personal skills. He has<br />
been a keen observer of the family drama triggered by Peter<br />
and Dana, and has managed to remain on cordial terms with<br />
everyone while staying out of the fray.<br />
If the law required the Traditionals to select one of their<br />
children as their Executor, clearly the youngest, Eddie, would<br />
be the best choice. But the law has no such requirement. And<br />
given his desire to stay as far away from family drama as possible,<br />
Eddie might prefer not to serve as Executor.<br />
Knowing this, the Traditionals begin considering a wide<br />
variety of other people well suited to the role – other family<br />
members and friends, or professionals such as attorneys or<br />
accountants. But this time, they base their choice for each<br />
role on how well any individual’s skill set and temperament<br />
match the needs of the job.<br />
Choosing your executor and other persons who will<br />
play key roles in managing your assets can be a far more<br />
important – and more challenging! – aspect of the estateplanning<br />
process than deciding who gets Grandma’s pearls<br />
or the grand piano. Don’t feel you need to have made these<br />
decisions prior to meeting with your estate-planning attorney,<br />
who’ll be able to help you identify objectively persons<br />
well suited to these demanding roles.<br />
Claudia Pringles is an estate planning attorney based in<br />
Montpelier, Vermont. She can be reached at 802-223-0600 or<br />
via her website at www.EstatePlanningVermont.com.<br />
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