Carrie ConboyAs part of our lead up to our FREE 4th Annual Learn Care Share event on Friday, September 26th (you can REGISTER HERE), we will be sharing some great informative Guest Blog Posts from our event Gold Sponsors. Our first post comes from Charles O’Neill, Founder & CEO of Executor Services LLC, founded to support families in navigating the complicated and stressful environments that are estates.
Estate Planning is a critical component that everyone needs to capture the intent of their affairs and legacy. Not having the basic estate planning records; Wills, Financial Powers of Attorney & Healthcare Powers of Attorney, can have unintended consequences that can be resolved by simply having your legal documents in place and fully executed. While I could go deep into the importance of the estate planning process, that is not the purpose of this discussion.
Today we are going to look at the estate settlement side of the equation and the importance of considering the key people or estate settlement team members that will be responsible for the execution of your estate plans. It is critical to have the right team in place to ensure your intent and plans are executed to maximize the estate for your beneficiaries. There are two primary members of the team that are tasked with the majority of the responsibilities and actions. The estate settlement attorney and the executor.
As the Testator (creator of the will), these are some questions you should think about. Try to approach them from a business perspective as opposed to an emotional one. Estate settlement is a detail-oriented process that has deadlines and milestones throughout the entire timeline.
- Who is on your estate settlement team?
- Are they all qualified, capable, & knowledgeable of the process?
- Do they have the available time and commitment to complete the tasks?
- Are they good communicators?
Let’s take a look at each of these questions and provide you with some details about estate settlement that you should know when selecting your team.
- Who is on your estate settlement team?
Your estate team should ideally have the following members.
- Executor for the Estate- An executor of an estate is an individual appointed to administer the last will of a deceased person and carry out the instructions to manage the affairs.
- Estate Settlement Attorney- An estate settlement attorney, also known as a probate attorney, helps families navigate the legal process of settling an estate after someone has died.
- Financial Planner/Wealth Manager- A financial planner helps organize and manage the financial aspects of estate settlement, ensuring that assets are distributed according to the deceased’s wishes while minimizing tax implications.
- Certified Public Accountant (CPA)- A CPA plays a crucial role in estate settlement by providing tax expertise, ensuring compliance with tax laws, and assisting with the valuation and distribution of assets. They help executors manage financial tasks, file necessary tax returns, and minimize tax liabilities for the estate.
- Are they all qualified, capable, & knowledgeable of the process?
Not all of the categories of professionals we just discussed may have experience with estate settlement and probate. Make sure that the professional you choose knows the estate world. We recommend using an experienced Elder and Estate Planning attorney like those we partner with at Zacharia Brown & Bratkovich, as well as a CPA who handles estate tax filings on a regular basis. Having a general knowledge is good but the “devil is in the details”, pick an expert for the best results.
Normally, the executor is the least experienced member of the team but carries a very large portion of fiduciary responsibility and liability. Picking a family member is what typically happens. The eldest child, or the child that lives the closest. These characteristics are not necessarily the best to use when selecting your executor.
- Do they have the available time and commitment to complete the tasks?
For the professional involved this is less of an issue as they handle estate settlement as their full-time job. For executors it is a major consideration.
Did you know, the average executor will spend approximately 600 hours administering an estate. That is approximately 15 full work weeks!
Did you know, the average estate will take 14-16 months to settle and that is if everything goes smoothly.
Executorship is not a short-term role. There are many delays built into the process that the executor has no control over. For example, once the Inheritance tax is filed, the state will take up to 5 months to process before estate close out and distribution tasks can be completed.
Having a child or a brother or sister or even a parent named as executor when we are in our 50’s and 60’s may be the right solution. As we age, we need to remember that our families are aging with us. Health issues are another consideration. Does your executor have health issues that may prevent him or her from acting on your behalf. Where are they located? Executors that are located out of town, another state or another country will have additional challenges to perform this role.
Another big issue is that many executors and for that matter power of attorneys are not aware that they have been appointed to these roles. In many cases they do not find out until the testator has passed. Many at that point indicate that they do not want the job which can slow down or stop the settlement process. Make sure the people you are naming are aware, and willing to perform the duties of the roles.
- Are they good communicators?
Every member of the team needs to be a good communicator. This is especially important for the executor. One of the primary roles of the executor is to communicate to the beneficiaries’ details about the estate settlement process, the accounting for the estate and maximizing the estate for the beneficiaries based on the contents of the will, or in the absence of a will, PA state laws. The executor must also be able to understand details provided to them by other members of the estate settlement team and provide those details to the beneficiaries, as well as be able to answer any questions.
Did you know that the average executor will spend a significant amount of time just figuring out the process and how to communicate with beneficiaries.
Given the complexity, time and responsibility of an executor you may want to consider using our Professional Executor service to assist you and your family through the estate settlement process. By the way, these same challenges would apply to your Power of Attorney candidates. Let us help you get organized and prepared for the future.
“Nobody plans to fail. They just fail to plan.”—Anon.
