When making your estate plan, you will need to pick an executor. This person will carry out your wishes in accordance with your will and other official documents included in your estate plan. Thus, they will play a major role and hold a lot of responsibility.
It is important to select the right person for this task, and you may immediately gravitate toward a relative. But is a relative really the best option in this scenario?
Will your relative hold up under pressure?
RBC Wealth Management looks into things to keep an eye out for when choosing an executor. Though you may initially lean toward a relative, they may not make the best option. For one, an executor needs to have some technical and managerial skills. They will handle many complex portions of your estate plan, after all, including issues related to taxes and finances.
They will also bear a lot of the responsibility for delegation and organization, along with the potentially messy business of dividing your assets among your loved ones. If they cannot stand up well under pressure and do not have strong people skill, they may not be the best pick for this job.
The potential benefits
On the other hand, relatives can make great executors due to the fact that you will have a strong baseline of trust and understanding from the start. You likely spent a majority of your lives together and have come to deeply trust in one another. You will know whether your relative holds similar ideals to you and if you can count on them to carry out your will appropriately. For you, this benefit may be the most important part of your decision-making. However, you should consider all factors before making a final choice.