Benefits of Appointing an Executor
When a person dies owning assets in his or her name alone, without a joint owner or beneficiary, an estate must be opened in probate court. A personal representative must be appointed to act on behalf of the deceased person. If there is a will, the personal representative is called an executor. If there is no will, the personal representative is called an administrator.
Disadvantages to Not Appointing an Executor in Your Will
- An administrator must live in the same state as the deceased person. Therefore, a family member or friend who lives out-of-state cannot be in charge of administering your estate.
- An administrator typically must post a surety bond based on the value of the probate estate assets. This is usually an unnecessary expense of the estate that could have been distributed to your beneficiaries.
- An administrator typically must have good credit in order to post the surety bond. Therefore, in some cases, the most suitable person cannot act as the personal representative of the estate due to poor credit.
- If more than one person applies to be the administrator, the court decides who will be in charge of the estate.
Advantages to Appointing an Executor in Your Will
- You designate the person(s) in charge of your assets and to administer your estate.
- You can designate an out-of-state person to be your executor.
- You can waive the requirement for a surety bond, which will save your beneficiaries money.
- You can authorize your executor to sell real estate, personal property, settle claims you have against others and continue the operation of a business you own. (Without a will, your personal representative may need to obtain prior court approval to complete these tasks.)
