Thinking about what happens to your property and money after you die isn’t always easy, but it is necessary, especially if you don’t have close family to rely on. The good news is that you have many options. Whether you choose a trusted friend, a paid professional, or even a charity, your estate can be managed responsibly. Let’s walk through what you need to know so you can make a smart choice and have peace of mind.
What Does an Executor Actually Do?
An executor is the person or institution that makes sure everything in your estate plan is carried out just as you intended. They handle your financial affairs, pay off any debts you owe, work through the court probate process, and distribute all your assets to the people you named as beneficiaries. Simply put, the executor is in charge of wrapping up all your affairs after you pass away.
Most people name a close relative as an executor. But what if you don’t have one? Or what if your family members are spread across different states or are not well suited to take on this big job? That is where alternative choices come into play.
Who Can You Name as an Executor?
If you don’t have a family member available, you still have strong options. Here are some solid alternatives you can consider:
- A Close Friend: A friend is a great choice if they are someone you trust completely. This person should be responsible, organized, and level headed, since being an executor is a big task. Make sure they are willing to take on the role before you name them in your will.
- A Professional Fiduciary: A professional fiduciary is someone who is trained in estate management. They offer their services for a fee. If you prefer a neutral, experienced party handling your estate, this is a very good choice. These professionals follow strict fiduciary standards and act only in your estate’s best interest.
- A Corporate Executor: Banks, law firms, and trust companies all have departments specifically set up for handling estate administration. If your estate is complex, meaning you have complicated investments or real estate, this might be a smart choice. They have the knowledge and resources to make sure everything goes smoothly.
- A Charity: If you plan to leave your estate to a specific cause, some charities can serve as executors. If you are passionate about a certain cause, this is an option worth exploring.
- Co-Executors: You can name both a professional and a friend or relative to share the duties. This blends personal trust with professional expertise.
It is also important to remember to name a backup executor in your will. This ensures that if your first choice is unwilling or unable to serve, the estate can still move forward smoothly.
How to Choose the Right Executor
Picking an executor is a serious decision. You want someone who has certain traits and skills:
- Trustworthy: This person will have access to all your money and must act only in the best interest of your estate and all your beneficiaries.
- Financial Experience: Managing an estate involves paying debts, handling investments, and going through the probate process. They should have some financial literacy.
- Willing to Take on the Role: Being an executor comes with real responsibility. It is best to talk to your potential choice ahead of time to make sure they are up for it.
When evaluating professional options, look for their credentials, reputation, and communication style. Ask about their licensing, liability coverage, and experience with estates that are similar in size to yours.
What Happens When an Executor Isn’t a Family Member?
The court process remains the same whether your executor is a friend, a family member, or a professional. Here is what happens:
- The Will is Filed in Court: Your chosen executor submits your will to the probate court to officially start the administration process.
- Beneficiaries and Creditors Are Notified: The executor tells everyone who has a vested interest in your estate, like beneficiaries and creditors, about what is happening.
- The Estate is Managed and Distributed: Your executor settles outstanding debts, handles financial accounts, and makes sure your final wishes are honored.
- The Estate is Officially Closed: Once all responsibilities are met and assets are distributed, the executor files the final paperwork to formally close your estate.
Legal Considerations and Court Appointments
If no executor is named in your will, the court will step in and assign an administrator. This is called the Court-Appointed Route. The court will usually prioritize your next of kin. If no suitable family member exists, the court may assign a public administrator or a creditor.
This court-appointed route removes your control over who manages your affairs. It can also delay probate and add costs. To avoid this, it is always best to name your own executor.
For example, North Carolina law allows you to name non-family members as executors, but there are clear rules. The court prioritizes appointments according to N.C. Gen. Stat. § 28A-4-1: your named executor first, followed by a creditor or interested party, and then a court-appointed representative. Choosing an executor who meets all legal requirements helps prevent family arguments and ensures a smooth transition.
Regarding pay, executors are entitled to compensation. The amount varies by state. In North Carolina, Executors or Administrators may claim a commission of up to 5% of the Estate assets and receipts.
Protecting Your Legacy With Proper Documentation
Having a will that clearly identifies your executor, your assets, and your instructions prevents unnecessary court intervention. You should also give written guidance about things like digital accounts, property titles, and personal possessions. It is important to update these materials regularly when your financial or family situation changes. You can revise your will at any time as long as you are mentally competent.
Whether you decide on a trusted friend, a professional fiduciary, or a charity, having a solid plan in place will protect your assets and ensure a smooth transition after you are gone.
If you need guidance on selecting the right executor, Salines-Mondello can help you evaluate your options and make sure your final wishes are legally protected. We are here to help you go through this process and secure your future. Call us today at (910) 777-5734 for a consultation.