Who Will Be the Executor of Your Estate? A 3-Step Decision Tree
Who Will Be the Executor of Your Estate? A 3-Step Decision Tree
When you’re creating an estate plan, one of the most important choices you’ll make is deciding who will serve as executor. This is the individual responsible for carrying out the instructions in your will or trust, paying final debts, distributing assets, and ensuring your legacy is handled properly.
Choosing the wrong person can create unnecessary stress, delays, or even conflict, while choosing the right one can ensure a smooth transition for your loved ones.
So, how do you make this decision? Think of it as a three-step decision tree.
Step 1: Trustworthiness Above All Else
The first and most crucial quality in an executor is trustworthiness. This person will have legal authority over your estate’s assets, which may include bank accounts, real estate, investments, and valuable personal property. More importantly, they’ll be charged with honoring your wishes exactly as you’ve written them.
If the executor is someone you can’t trust to act with integrity, the rest of their qualities won’t matter. For example, you may know someone who is financially savvy, but if they’ve struggled with honesty in the past, appointing them could expose your estate to disputes or mismanagement.
Ask yourself:
Do I trust this person to put my wishes above their own interests?
Can they act impartially, even if family dynamics get complicated?
Will they treat beneficiaries fairly, even if they disagree with my decisions?
This step alone will help you rule out several candidates and narrow your list to only those who deserve the responsibility.
Step 2: Organization and Financial Competence
Once you’ve identified trustworthy candidates, the next step is to evaluate their ability to handle details—lots of them. Settling an estate is essentially a project management role that requires patience, organization, and attention to detail. The executor may need to:
Collect and catalog all of your assets
Pay outstanding debts, taxes, and bills
File paperwork with the courts and financial institutions
Manage investments until assets are distributed
Keep careful records to provide an accounting to beneficiaries
If your estate is relatively simple, someone with basic organizational skills may be enough. But if you own multiple properties, have business interests, or have complex investments and tax considerations, a financially educated executor can save your estate significant money. Someone who understands taxes, investments, or accounting can handle much of the work without immediately turning to professionals for every step. Of course, they can and should seek professional help when needed, but having the right foundation avoids unnecessary expenses.
Step 3: Communication and Composure Under Pressure
Even with the best estate plan, family emotions can run high when someone passes away. Beneficiaries may have differing expectations, old conflicts may resurface, and decisions can become contentious. That’s why the third quality of a good executor is strong communication skills paired with the ability to remain composed under pressure.
The executor acts as the central point of contact between lawyers, accountants, courts, and beneficiaries. They must explain decisions clearly, handle disagreements diplomatically, and keep the process moving without letting emotions derail the outcome. Someone who can stay poised in difficult situations will reduce the likelihood of family disputes escalating into long, costly legal battles.
Ask yourself:
Will this person be able to mediate calmly if siblings or relatives argue?
Can they explain complex financial or legal issues in plain terms?
Are they patient enough to deal with people during a stressful time?
Who Should You Choose?
After walking through the three steps—trustworthiness, financial organization, and communication skills—you should have a good idea of potential candidates. Your executor could be:
A family member, such as an adult child, sibling, or spouse. This is a common choice, but it works best when that person has the right temperament and skills.
A trusted friend, who knows your wishes well and can remain neutral if family dynamics are complicated.
A professional, such as an attorney, accountant, or corporate trustee. Hiring a professional can ensure expertise and neutrality, but it does come with fees that reduce the estate’s value. For some people, the peace of mind is well worth the cost.
It’s also important to remember that naming a successor executor is vital as well, in case the primary executor passes away pre-maturely, or simply decides they don’t want the responsibility. You can use the same process for choosing your successor executor.
Main Takeaway:
Naming an executor is not just a formality—it’s one of the most consequential decisions in your estate plan. By approaching it as a three-step decision tree, you can ensure that the person you choose is not only trustworthy, but also capable of handling the practical and emotional responsibilities that come with the role.
Your estate is the legacy you leave behind. By carefully choosing the right executor, you can help ensure that legacy is preserved, respected, and carried out exactly as you intended.
Ryan Page, CFP®, MBA®
Office & Text:720-826-1092
This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.
