Should You Be An Executor

When someone ask you to their Executor, you could feel it is an honor since they trust you enough to handle their affairs when they have passed away. While it might seem like a good idea, consider the following points.

Being the executor can be time consuming. You’ll need to liaise with family members, lawyers, banks, attend court etc. While you might have the time now, your work and family commitments will changed in the future.

The work an Executor has to carry out include corresponding with banks, telephone calls, going to various financial institution (like banks, insurance company) government department, taxation and others. If you do not have the time, the beneficiaries will suffer since they want to access money and assets as fast as possible. Travelling to various places cost money too. In Malaysia, an Executor can charge up to 5% of the estate value, most don’t and bear the expenses themselves because the feed bad about taking money from the deceased.

It is quite common that grieving family members will distrust the Executor.  Some even accuse the Executor of not giving them money they are entitled to from the estate, or they delay the process. Most family members don’t realize that beneficiaries are last on the list. The Executor has a legal duty to settle debts, taxes and other expenses first.

In cases where there is not enough liquid cash to pay debts, the Executor has to decide which asset to sell off to pay the debt. The beneficiaries might not agree to the sale due to sentimental or other reason.

Estate administration may not be resolved in a timely manner. This mean that you can be the Executor for an extended period of time, longer than you anticipated. For the majority of us, we have never taken up the role of an Executor. Doing things the first time usually means uncertainty, mistakes and delays to the beneficiaries. You are actually acting like a liquidator winding up a company but on a personal level.

Therefore, before you agree to be an Executor, think carefully because it could be a very stressful role for you. See the following chart for the full duties of an Executor.