When you drew up your will, you named an executor or “personal representative” to settle your affairs at your death. You may have chosen your spouse, an adult child, another loved one, or a close friend to perform this task. But consider this. Does the person you’ve chosen possess the expertise, experience and impartiality needed to handle your affairs and distribute your assets in a timely manner?
An Executor’s Duties
Basically, your executor has one task — to carry out the final instructions in your will. Sounds simple, doesn’t it? But, along the way, the person you’ve chosen will have to value, collect and manage your assets, pay your creditors, file tax returns and insurance claims, distribute your assets to your beneficiaries and keep accurate records for your heirs. Before your estate is distributed, your executor might have to make financial decisions that could impact its value. Naming an executor who is experienced in financial matters could make a big difference in the amount your loved ones eventually receive and how quickly they receive it.
A Sensible Option
Because your executor should be someone who is financially responsible and objective, knowledgeable about investing and taxes, and familiar with accounting practices and tax laws, you may want to consider naming a professional co-executor to help settle your affairs. A professional can help prevent costly mistakes that an inexperienced executor might unwittingly make. A professional co-executor will work hand in hand with the relative or friend you’ve also named in your will to conclude your affairs and distribute your assets according to your final wishes.
Settling an estate can be complex and time consuming. Securing professional assistance can help maximize your legacy and ease the burden on your loved ones at a difficult time.
This material is provided for general information purposes only and is not a recommendation or solicitation to buy or sell any particular security, product or service. Past performance is not indicative of future investment results. Any investment involves potential risk, including potential loss of capital. Before making any investment decision, please consult your legal, tax and financial advisors. Non-deposit investment products are not bank deposits and are not insured or guaranteed by Canandaigua National Bank & Trust, or any federal or state government or agency and are subject to investment risks, including possible loss of principal amount invested.