The Buyt Desk
Will is the most useful instrument for those people who want to allocate their property or wealth amongst their children, life partner, or other legal heirs when they are no more i.e. after their death. A testator, a person preparing his/her will, can prevent or reduce the possibility of disputes amongst legal heirs after their death. Appoint the correct executor to make sure your instructions are properly carried out.
Who is an executor?
An individual that the testator appoints to implement the last Will is recognized as an executor. Their details are clearly mentioned in the Will and access the authority from the instrument. The executor needs to step into the testator’s shoes after the demise and make sure that Will is executed according to his last wishes.
How to choose an executor?
According to the law, an executor needs to be at least 18 years old. They must have enough caliber to outlive the testator. Moreover, they must have a detailed understanding and skills to effectively manage legal matters as per the administrative work, accounting procedures, and more. Lacking any crucial skills in an executor can delay the whole process of the estate execution. So, you must consider two important factors – knowledge and trust while finding an executor.
You can hire a friend, relative, or beneficiary as your executor or assign the responsibility to a CA (charted accountant), financial advisor, or professional lawyer for the execution of your Will. If you wish, you can even appoint more than one executor in your Will but be sure who will own the final decision power. Substitute executors can also be hired when the appointed executor is unwilling or can’t work after the testator’s death.
Try to find an executor from a reliable professional organization featuring good legal and/or financial background. Be sure he or she can give quality time. That’s because the process of distributing the whole estate to beneficiaries can consume about 6-12 months. Check out that the executor you’re appointing must be an Indian resident. The reason is that the execution process of a Will is cumbersome in India. It requires performing several responsibilities and actions at a regular period.
Important Duties of An Executor
The primary responsibility of an executor is to collect the information on all the assets given in the estate and then protect those assets and properly distribute them to the beneficiaries as instructed in the testator’s Will. The information can be gathered either in electronic form or physically. The executor can also liquidate the investments for distribution when mentioned in the Will. Or, they can simply transfer them to potential beneficiaries.
Another responsibility of an executor is to settle down the testator’s outstanding loans. They need to ensure the debts are cleared out of the testator’s estate. If given in the Will, they also have to file the income tax of the testator. The assets distribution must be done accurately according to the Will without any mistakes.
When any dispute happens between the legal heirs and beneficiaries, the executor works as a mediator. They need to ensure a proper and peaceful estate disposition.
Problems without executor
Opening a Will is difficult without an executor. All legal heirs will have to submit their claim and apply for succession certificates or administration letters. There are delays or disputes bounds that can negatively affect the succession process, assets inheritance, debt settlement, and testator’s estate distribution.
When executors decline to do their obligations or can’t do that for any reason, no one can act as an executor. So, the court may assign an administrator to oversee the estate disposal. Beneficiaries can hire a neutral organization or one amongst them for Will execution.
Professional or Individual Executor
Appointing an individual executor won’t cost you a higher fee cost. You only have to pay for investments reimbursed for administrative costs or legal matters. But, there is a risk of personal partialities. Professional organizations executor (mid-size) may charge between 3-5 lakh. However, large law organizations may charge between 15-20 lakh. Some professionals charge 0.5-2% of the estate value as their fees. But, these executors are possibly neutral during asset distribution.
