An executor of a will is a person you appoint to carry out the instructions in your will after you pass away. Their main job is to ensure that your wishes are followed and your assets are distributed according to your Will. You may even be asked by a friend or family member to be an executor of their Will.

Responsibilities of an Executor

1. Locate the Will: The executor must find and read the will to understand your wishes.
2. Manage the Estate: This includes collecting all assets, paying off debts, and managing property until it can be distributed.
3. Probate Process: The executor may need to go through probate, a legal process to validate the will.
4. Distribute Assets: They ensure that your assets are distributed to the beneficiaries as specified in your will.
5. Handle Taxes: The executor is responsible for filing final income tax returns and paying any taxes owed.

Costs Involved

• Probate Fees: These are court fees for the probate process.
• Legal Fees: If the executor hires a lawyer to help with the estate, there will be legal fees.
• Executor Fees: Executors are often entitled to a fee for their work, which can be a percentage of the estate or a flat fee.
• Miscellaneous Costs: These can include costs for appraisals, postage, and other administrative expenses.

Choosing the Right Executor

1. Trustworthiness: Choose someone you trust to carry out your wishes faithfully.
2. Organisational Skills: The executor should be organized and detail-oriented, as managing an estate involves a lot of paperwork.
3. Financial Acumen: It helps if the person has some financial knowledge to handle taxes and manage assets.
4. Availability: Ensure the person has the time to dedicate to this role, as it can be time-consuming.
5. Willingness: Always ask the person if they are willing to take on this responsibility before naming them in your will.

By carefully selecting an executor who meets these criteria, you can ensure that your estate will be managed smoothly and according to your wishes. If you have any doubts, consider discussing your options with a financial advisor or lawyer to make the best choice for your situation.

This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request