• 08
  • March
    2011

In the last post, we were discussing choosing an executor, or personal representative as it is known in Florida, for your estate. Here are some factors to consider:

One Executor or Several?

Sometimes people name co-executors in order to spare children's feelings. It's a bad idea, though. For one thing, any time something needs to be signed, all of them will need to sign. For another, they could quarrel. Finally, one of them is probably going to end up doing the lion's share of the work. It's a better strategy to name just one, and name the other children as alternates.

Outsider of Family Member?

The advantage of naming a family member as executor is that they probably understand your wishes better than outsiders, and can probably locate your assets more easily.

If you don't have a family member that is an obvious choice, make a list of trusted friends. One problem that arises is that if these friends are contemporaries, they may or may not survive you.

You can name a Florida estate planning and probate attorney, an accountant, a bank or a trust company, but some banks and trust companies may not be interested unless the estate is rather large. In some cases it may be a better idea to name someone who will be authorized to choose a professional to administer the estate when the time comes.

What Will They Charge?

In Florida, you can't name someone from outside the state as executor/personal representative unless they are a relative. Florida law allows executors to charge big fees: 3 percent on the first $1 million; 2.5 percent on anything above that, up to $5 million; and 2 percent on the next increment, up to $10 million. This can be quite a lot of money, but you can always seek out an executor who will charge an hourly rate.

It is common for family members to waive the fees, and simply take reimbursement for expenses.

You can reduce fees by reducing the number of assets that will pass through the will. An estate planning attorney can assist with this strategy.

Who Should Know?

Your choice for executor should agree to the job before you appoint them. Some people who have done it before would rather not do it again.

You should also talk to any family members you did not choose, just in case they think they are missing out on a great honor.

Source: New York Times "Choosing the Right Executor for Your Estate" 3/2/2011