How to Choose an Executor or Trustee

Whether you’re creating a will or a trust, choosing the right person to administer it is crucial to making sure your wishes are carried out.

A lot of people are making these choices now, according to Jennifer Stice, Managing Director of Trust and Investment Services with Town and Country Bank. “During the COVID pandemic, estate planning attorneys are seeing a lot of people establishing a will or trust, or they’re seeing existing clients updating their plans.”

An executor carries out the directions in your will after you die, making sure your bills and taxes are paid and assets are distributed according to your wishes. A trustee administers your trust, which could be necessary while you’re living or after you’ve passed.

“People tend to choose a person for these positions as a compliment, but instead, think in terms of who’s best suited for this work,” says Stice. “There’s a lot of work involved.”

What to Consider:

• Trust – Do you trust the person to carry out your wishes? Are they responsible with money?
• Ability – Are they familiar with basic finances? Can they meet deadlines?
• Age – Are they likely to outlive you?
• Time – Either job can take months to years. Do they have this kind of time and are they willing to give it?
• Location – Does the person live near you? It will be much easier if they do.
• Grief – Will the person be grieving so much that it may be difficult for them to carry out their duties?
• Family dynamics – If there is conflict among your family members over your wishes, would the person be able to manage it impartially? “This is extremely important, but a lot of people don’t consider it,” says Stice.
• Eligibility – A trustee or executor must be a U.S. resident, at least 18 years old, not a convicted felon, and not an adjudicated disabled person.

Name Successors

Always name a second choice for these positions in case your first has passed or is otherwise unable to serve. It’s even better to name a third successor in case the first two would be unable to fulfill their duties.

Consider a Bank

You can name a person or professional (like a lawyer or bank trust department representative) to these positions. “Banks always want to be considered as the first option for a trustee or executor, but we always recommend naming the bank for the third option at least,” says Stice.

There are many advantages to naming a bank as trustee or executor.

“Bank professionals do this every day and have a good understanding of what to do. We know what papers have to be filed and when, how to get appraisals of land, homes, and collections, and we have the time to do this because it’s our job,” Stice says. “Bank personnel are also held to a higher degree of legal liability, so you know we’ll be impartial when dealing with family members and other beneficiaries. I can’t stress enough how helpful that can be.”

Forbes.com says a professional is best when “the beneficiaries don’t get along, there is a problem beneficiary, or you’re dealing with large sums of money.” Sometimes a trustee or executor has to make decisions that will be unpopular with the family or beneficiaries, and professionals can do so impartially.

You can also name co-trustees, such as a family member or friend and a bank representative. This ensures you have someone who knows the family and beneficiaries, as well as a neutral professional who’s familiar with the responsibilities.

If you’d like to learn more about our Trust and Investment Services or make Town and Country Bank an executor or trustee, please contact our Customer Service Solution Center at (866) 770-3100 or meet our Trust and Investments team today!