Who Should I Choose to Be My Executor?

Choosing an executor is one of the most important decisions you will make when drafting your will. Your executor will be responsible for managing and distributing your estate according to your wishes. In Australia, you may appoint a professional, a family member, or a trusted friend. Each option has its own advantages and considerations.

A Professional Executor

A professional, such as a lawyer or an accountant, can serve as your executor. Many people choose a professional when they do not have a suitable family member or friend to take on the role. Professionals have the legal and financial expertise to handle complex estates efficiently. However, they will charge for their services at their standard rates, which can reduce the overall value of the estate. Choosing a professional may be a good option if your estate is large or involves intricate legal and financial matters.

A Family Member or Friend

Many people choose a family member or a close friend as their executor. A family member can include, but is not limited to, your spouse, de facto partner, parent, child, siblings, nieces, or nephews. When selecting an executor, it is important to choose someone who is not too old, as you want them to outlive you. However, if your chosen executor ages or becomes unable to act, you can always update your will to appoint a new executor.

It is crucial to select someone you trust and who has the necessary skills to manage the estate. While an executor does not personally benefit from the estate, they can apply to the Supreme Court for a commission of 1-5% of the estate's value to compensate for their efforts. Some willmakers also leave a gift for the executor, particularly if they are not a professional or a close family member.

A family member or friend acting as executor can also seek professional legal or financial advice if needed, and the cost of this advice will generally be paid from the estate.

Joint Executors and Backups

You can appoint more than one executor to act jointly. This can be useful in ensuring that responsibilities are shared and decisions are balanced. However, it is crucial that co-executors can work well together, as disagreements can delay the estate administration process.

Additionally, it is wise to name a backup executor in case your primary choice is unable or unwilling to act. If an executor is unable to fulfil their duties for any reason, they can formally resign from the role by applying to the Supreme Court for removal.

Conclusion

Ultimately, the best executor for your estate is someone you trust and who has the capability to handle the responsibilities. Whether you choose a professional, a family member, or a friend, ensure they understand the obligations involved and are willing to take on the role. Having a backup plan in place will also provide added security for the smooth administration of your estate.