Choosing the person who will handle your estate after your death can feel like a deeply personal decision.
For many parents, the choice seems almost automatic. Name the oldest child. Name the child who lives nearby. Name the son or daughter you talk to most often. Or simply name the person you trust more than anyone else.
Trust certainly matters. But there is another question that deserves just as much attention:
Can this person actually do the job?
An executor or trustee may have to deal with paperwork, deadlines, financial records, property, beneficiaries, attorneys, accountants, banks, investment companies, and, sometimes, family disagreements.
That means choosing an executor or trustee shouldn’t be treated simply as an expression of affection or confidence. You are selecting someone for a position with real responsibilities.
Start With the Job, Not the Family Tree
Consider Robert, a 71-year-old widower with two adult daughters, Karen and Lisa.
Karen is the daughter Robert naturally thinks of first. They talk several times a week. She knows what matters to him, understands his wishes, and has always been there when he needs her.
But Karen hates paperwork. She tends to put administrative tasks aside until later, and she becomes uncomfortable when relatives disagree.
Lisa lives farther away. Robert doesn’t speak with her quite as often. But she keeps careful financial records, handles paperwork promptly, and remains fairly calm when people hold different opinions.
Robert trusts both daughters.
His original assumption was that Karen should be his executor because she is the daughter he relies upon most personally.
But there’s a better question for Robert to ask:
Which daughter is better suited to handle the responsibilities of administering my estate?
That doesn’t automatically mean Lisa should be chosen. It means Robert should evaluate the job before deciding who should fill it.
What Does an Executor Need to Be Good At?
An executor doesn’t have to be an accountant, attorney, or financial expert.
In fact, a good executor should recognize when professional help is needed rather than trying to handle everything alone.
But several practical qualities can make a significant difference.
Organization
Estate administration can involve bank records, insurance information, property documents, tax information, bills, court filings, inventories, correspondence, and other records.
Someone who routinely loses paperwork or ignores mail may find the job particularly difficult.
Follow-through
An executor may have matters that need attention over a period of months.
The person you choose should be someone who follows through rather than someone who needs repeated reminders to complete ordinary administrative tasks.
Judgment
Executors can face decisions involving property, expenses, professionals, and beneficiaries.
The best person isn’t necessarily the family member who knows the most about investments. Good judgment includes recognizing what you don’t know and getting appropriate advice.
Communication
Beneficiaries often want to know what is happening.
An executor who communicates clearly and calmly may prevent ordinary uncertainty from becoming unnecessary suspicion or frustration.
Ability to Deal With Disagreement
Families don’t have to fight over an estate administration to make it uncomfortable.
One child may want to keep an item of property, while another may want to sell it. Beneficiaries may have different expectations about how quickly something should happen.
The person handling the estate should be able to address disagreements without making them worse.
Executor and Trustee Aren’t the Same Job
The terms executor and trustee are sometimes used as though they mean the same thing. They don’t.
An executor generally administers a person’s probate estate after death. Texas law also establishes qualifications for people serving as executors or administrators; simply naming someone doesn’t necessarily mean that person will be legally qualified to serve.
A trustee manages property held in a trust in accordance with the trust’s terms and applicable law. Depending on the trust, that responsibility might continue for years.
Texas trust law addresses matters such as a trustee’s duties, administration of trust property, beneficiary interests, and investment and management responsibilities.
Someone who would make a perfectly good executor isn’t automatically the best trustee.
For example, a person might be quite capable of handling an estate administration for a year but have little interest in managing a trust for grandchildren for the next fifteen years.
The position should fit the person.
Don’t Assign Every Estate-Planning Job to the Same Person Automatically
Another common mistake is assuming that one trusted family member should fill every role in an estate plan.
That isn’t necessary.
The person you want making medical decisions if you become incapacitated may have excellent compassion and judgment in a healthcare setting but dislike financial matters.
Another family member might be much better suited to dealing with accounts, records, investments, and administrative details.
Different responsibilities can call for different strengths.
The objective isn’t to rank your children or decide which relative you trust the most.
It is to match people with responsibilities they can handle.
Five Questions to Ask Before Making the Choice
If you already have an estate plan, look at the executor or trustee you’ve named and ask:
- Does this person reliably handle paperwork and deadlines?
- Is this person reasonably comfortable dealing with financial and administrative matters?
- Will this person keep good records?
- Can this person communicate calmly with other family members, even when they disagree?
- Will this person ask an attorney, accountant, financial professional, or other adviser for help when necessary?
You may decide that the person you’ve already chosen is exactly right.
But if your answer to several of those questions makes you uncomfortable, the selection may deserve another look.
Your Choice Can Change
The person who seemed like the obvious choice ten years ago may not be the best choice today.
Children grow older. People move. Health changes. Relationships change. Financial circumstances change. The complexity of an estate can also change.
That’s one reason an estate plan shouldn’t simply be signed and forgotten.
Reviewing a plan periodically includes looking beyond who receives the property. It also means reconsidering who will be responsible for carrying out the plan.
If you haven’t reviewed your executor or trustee selections recently, pull out your documents and see who you’ve named.
Then ask whether you chose that person because of the relationship or because the person is actually suited to the responsibilities.
Sometimes those point to exactly the same person.
Sometimes they don’t.
If you’d like to review your existing estate plan or discuss whom to name in a new plan, call the office to schedule a consultation.
You can also download the Texas Probate Risk Workbook to identify other areas of your estate plan that may deserve attention.
This article provides general educational information about Texas estate planning and isn’t legal advice. The appropriate executor, trustee, or other fiduciary depends on the particular family, assets, documents, beneficiary relationships, and other circumstances.