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Why a corporate executor might be right for your estate

On Behalf of | Feb 3, 2022 | Estate Administration & Probate, Estate Planning, Probate |

If you are writing a will, you may be thinking about who to appoint as executor for your California estate. This is often a spouse or an adult child, but if there is not anyone suitable, you could consider a corporate executor.

The job of the executor

Appointing the right executor is important because this person is responsible for managing the estate as it passes through probate, making sure that assets are secured, creditors are paid and beneficiaries receive their assets. The executor does not have to be a legal or financial expert, but they do need to be well-organized and trustworthy.

Reasons to use a corporate executor

There are many reasons a testator may not want to name someone in their family as executor. It could be because there is simply no one they believe to be capable of carrying out the duties. It might be because family dynamics would put any executor in an awkward position or because the person asked did not want the responsibility. Another reason might be because the estate is particularly complex and includes trusts that will be managed by corporate trustees or a business that must be sold.

Appointing a corporate executor

Cost can keep some people from naming a corporate executor, but for others, this price is worth it, especially if the estate is particularly complex. A corporate executor can be named in the will just as any other type of executor would, be although the individual creating the will would also need to make a separate agreement with the chosen corporate executor. The expense comes out of the estate.

A corporate executor may be the right choice for an estate that is large enough to absorb the cost. It can also relieve the family of what could be a logistical and emotional burden.