The process of creating a will goes beyond deciding who gets your property after your demise. An equally important decision is choosing the right executor to manage and distribute your assets as per your wishes. This role is critical, as the executor ensures that all debts are paid, legal matters are handled, and your heirs receive their inheritance without disputes.
Who Is an Executor?
An executor is someone appointed in a will to carry out the wishes of the deceased. They manage the property, ensure that assets are distributed to the right beneficiaries, and handle the settlement of any debts or taxes owed by the deceased. Executors also have the responsibility to represent the estate legally and address any issues that arise during the execution of the will.
How Ratan Tata Chose His Executors
A prime example of careful executor selection can be seen in the late industrialist Ratan Tata’s will. He appointed close friends and family members, including Mehli Mistry, lawyer Darius Khambata, and his half-sisters Shireen and Dianne Jeejeebhoy, to execute his will. This decision highlights the importance of selecting trusted individuals who possess the legal and financial acumen to manage such responsibilities.
What to Consider When Choosing an Executor
Selecting an executor should be done with thoughtfulness and care. Here are a few things to keep in mind:
- Trustworthiness and Responsibility: The executor should be someone you trust completely to handle your assets as per your wishes. They must be organized and capable of managing complex matters.
- Knowledge of Legal and Financial Matters: Although an executor doesn’t need to be an expert, it helps if they have a basic understanding of legal, accounting, or administrative work. If not, they should be willing to hire professionals when needed.
- Residency: It is ideal to choose an executor who resides in India to ensure they can handle the legal processes and court proceedings without any geographical barriers.
- Age and Health: The executor should be above 18 years old and in good health. You would want someone who can outlive you and effectively execute the will when the time comes.
Personal vs. Professional Executors: What’s the Difference?
You can appoint either a personal or professional executor.
- Personal Executors: These are typically family members or close friends. They are often chosen because they do not charge for their services, making the process cost-effective. However, they may lack the necessary legal and financial expertise required for the job.
- Professional Executors: Professionals such as lawyers, chartered accountants, or financial advisors charge a fee based on the value of the property. While professional executors bring legal and financial knowledge, their fees can range anywhere between Rs 3 to 20 lakh, depending on the firm.
Challenges Executors Face
An executor’s job can be demanding. In some cases, an appointed executor might refuse to take up the role or be unable to perform their duties due to unforeseen circumstances. If this happens, the court may appoint an administrator to take over. Additionally, if no executor is named in the will, disputes may arise among the legal heirs, leading to legal complications.
Setting Aside Funds for Executor Expenses
When drafting a will, it is important to set aside some funds for the executor to cover necessary expenses like selling property, paying taxes, or settling outstanding loans. Executors not only handle asset distribution but also work to resolve potential disputes among beneficiaries, ensuring a peaceful transfer of property.
Making a well-informed choice for your executor ensures that your property is handled smoothly and that your loved ones receive what you intended without unnecessary delays or complications.
