Monday, January 11, 1999
ASK THE MONEY PANEL
Estates can have pair of executors
Question: Can two people be executors of an estate? What system of checks and balances are in place to make sure the appointed executor doesn't take advantage of his or her power?
Is it better to have two executors to keep things fair? — W.S. in Sharonville
Answer: Francis J. Niehaus, a certified financial planner and attorney with Niehaus Financial Services, says yes, two people can be co-executors of an estate.
An executor's duties include gathering all probate assets (those with no beneficiary designations), facilitating the transfer of all non-probate assets (life insurance, IRAs), paying bills, filing estate and income tax returns and making distributions to the heirs.
For all probate assets, canceled checks showing receipt of distribution by heirs must be presented to probate court to ensure compliance with the will.
Some estates that include businesses or more complex assets require an executor with special expertise.
An estate that is easily converted into cash and has tangible personal property does not.
Although two can serve, generally, only one person should serve as executor because it is much easier to administer the estate.
With co-executors, both have to agree on decisions and sign all checks, probate papers, estate and income tax returns.
This can be cumbersome, result in time delays and make an estate more expensive in legal fees because of increased attorney time.
Clients sometimes ask about co-executors for the following reasons: fairness, power sharing, expertise sharing and fees.
Except for complex estates, however, these reasons are not compelling enough to warrant co-executors.
Choose an executor who is trustworthy, responsible and not a procrastinator.
The executor's major duty is to hire an attorney familiar with estates to assist with the tax planning and returns, transfer of assets and expedient administration of the estate.
— Compiled by Perry Brothers
Readers should consider the advice from the Money Panel as general information only. Investors should seek the help of professionals on questions regarding their own portfolios because circumstances might vary.
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