What to Expect as an Executor or a Trustee
By Saghir Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)
Being asked to serve as an executor or a trustee for an estate is certainly an honor, but it’s also a considerable responsibility. And knowing and understanding those responsibilities can help you to be prepared.
Many people don’t realize what they are taking and all the duties required.
“Depending on the estate’s level of complexity and the assets in the estate that need to be administered, it can be very time-consuming”.
Here are five things you need to know now:
1. It’s not an easy job. Serving as executor or trustee typically requires a significant amount of time, patience, and organization. It can take up to a year, maybe longer, to completely wrap up someone’s financial affairs, Montano says.
2. You need to know what the assets are and how to find them. Ask where the will or trust is located and how you will be able to access those documents when the time comes. Also, consider asking for a detailed list of assets and where they can be found.
3. You can seek professional help. You can hire a lawyer to help you manage the most complicated duties or to oversee the whole process. You can also engage a CPA to help with tax issues. “Even if the estate is simple, consulting with an attorney is a good idea. There are responsibilities and deadlines you have to meet that are laid out by state law. You also need to follow the institutions as laid out in the will or trust. Sometimes people do things on their own and it gets them in trouble. The court may remove them as executor or trustee, or they may be held personally liable for actions they have taken,” Montano says.
4. You may be entitled to compensation. Trustees and executors are typically entitled to collect a reasonable fee. The amount may be regulated by state law or specified in the will or trust. You may choose to waive the fee, but you might still want to be reimbursed for travel and other expenses.
5. You can decline to serve. It’s OK to say you are not comfortable serving. If you do, then someone else or a corporate trustee or a third-party executor such as a bank, trust company, or a professional who has experience dealing with estate will need to be chosen.
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr. Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr. Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr. Aslam does not have anything for sale.)
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