Cue the executor

What an executor does

Think of Batman’s butler, the only suitable person who could have made sure all Wayne’s family property and assets were sorted, so little Bruce could grow up in a lavish estate. He’s definitely a smart cookie, and he fits the mould perfectly for the type of executor you’ll need to appoint to administer your estate. Your executor is the one who makes sure your wishes are followed to a T, and that any outstanding bills are paid, gifts are handed out, and guardians are appointed.

What to consider when selecting your executor

Your chosen executor is the superhero in the last chapter of your story. They are the ones who don their capes and take on a focused mission to carry out your final wishes. They have a complex part to play, so it’s important you make sure they understand the legal responsibilities. They will need to have a solid understanding of business, tax, and accounting, to be able to do the role well – they also need to be aware that they could be personally liable for any mistakes they make. Your executor’s first job is to obtain probate (though strictly speaking this doesn’t have to be the executor, it just often is). That is when the Court grants them the okay to administer the estate. Only then can your executor start the next step, which is the estate administration process.

There are numerous tasks the executor has to do. Just a few of these include finding and contacting your beneficiaries, claiming insurance or any entitlements and cashing in any assets, for example, your KiwiSaver, group life insurance and personal bank accounts.

They’ll have to advertise for any creditors, clear any debts, have items valued, transfer the ownership of certain assets and the list goes on. (read the estate administration process for full details).

How to choose the right person

Your executor can be anyone who’s of sound mind and over the age of 18, whether they’re a family member, close friend, or a professional adviser such as a lawyer or trustee company like Perpetual Guardian.

If you choose a family member or dear friend just keep in mind that everyone has a different grieving process. It could be difficult dealing with a loss while also trying to administer the estate.

Whoever you select we recommend you have a good conversation with them before naming them in your Will. Make sure they understand the legal liability they will have and the amount of time they will need to dedicate to the process.

If an executor of a Will doesn’t wish to perform the duties and shoulder the financial liability of executorship they can renounce their authority to another person or party to take over.

Can my executor also be a beneficiary in my Will?

Officially yes, it’s legal to have an executor who’s also a beneficiary in your Will. But we think it’s a good idea to keep the beneficiaries of your estate and your executor separate - just in case your Will is challenged as it could be seen as a conflict of interest, but it’s totally your call.

Can my Will be contested?

Yes, any Will can be challenged after your death, but the good thing is that it can’t be just anyone. There are only three circumstances where someone could challenge a Will and that’s when it falls into one of these three acts: The Family Protection Act (FPA), the Property Relationships Act (PRA) and the Testamentary Promises Act (TPA)

The Family Protection Act: if you have children who you are not including in your Will or you are providing for unequally.

The Property Relationships Act: If you’ve been with a partner for more than three years or have children together and you don’t include them in your Will.

The Testamentary Promises Act: If you’ve promised to include someone in your Will who has provided you with a service but then don’t.

Using an expert as your executor

There are many benefits to naming an experienced professional as executor of your Will. Here are a few:

• They are experts in their field. They live and breathe this stuff on a daily basis so they know what the deal is. They also don’t have the emotional stress and strain that’s typically associated with a loss so you can be assured your estate is dealt with correctly and with care.

• They are impartial. Family members don’t always see eye-to-eye and unfortunately, it’s common to see tension among families. This can sometimes cause difficulties when administrating an estate.

• There is always someone available. If you choose to nominate a family member or friend and they’re no longer around or sound to administer the instructions of your Will, this adds another step to the process. By choosing a professional, there will always be someone available to step in as executor.

To avoid some of these issues, choosing a professional might be the right call which is why we work with New Zealand’s leading trustee company Perpetual Guardian. To see a list of Perpetual Guardian fees click here.