Perhaps you have wondered whether you should provide for an executor in your future estate. This article aims to help you answer this question personally.
First and foremost: An executor does not replace the court in case the heirs cannot reach an agreement. While the executor can make decisions, their authority is not absolute. In particular, they lack the power, unlike the court, to carry out a division of the estate without the consent of all heirs. Nevertheless, in many cases, it makes sense and is advisable to provide for an executor:
- Estate divisions often take a long time, whether because the beneficiaries (heirs and/or legatees) cannot agree on the valuation of estate assets, because participants do not cooperate sufficiently, or because they need to be located first. When the deceased leaves multiple heirs, they form a community that can generally only decide and act with the consent of all members. The executor can remedy this situation by carefully ensuring the preservation and management of the estate until the division occurs. Ideally, the executor is able to gain the necessary acceptance from all heirs and, with a professional and efficient approach complemented by the necessary empathy, pave the way to an amicable resolution.
- In foreseeable contentious situations among parties, a combination of cleverly chosen and formulated legacies (i.e., specific bequests of goods or monetary values) and the appointment of an executor can ideally prevent any direct unwelcome conflict among the beneficiaries. The executor is permitted and should direct legacies as far as possible.
- Not infrequently, surviving relatives are simply overwhelmed emotionally or with the substance of the matter itself when confronted with the task of preparing an inventory for the authorities, assessing existing legal relationships (including taxes and insurances) of the deceased, terminating or adjusting them, or performing other administrative tasks following the death of a loved one. Therefore, the appointment of a suitable person should be done with great care.
- Furthermore, a complex, potentially international structure of the estate's assets, a significant distance of the beneficiaries from the deceased’s last residence, or the minority of heirs, whose inheritance needs to be managed carefully for a certain period, can also be reasons for appointing an executor.
We advise you with extensive experience and show you the mistakes you should avoid when arranging for an executor. Conversely, we assist you with advice and action when it comes to optimally tailoring the executor’s role to your personal situation. Please feel free to contact us!
Lucerne, May 8, 2020
Reto Marbacher
