Huh! What is an executor?

Aug 24, 2008

FINANCIAL QUOTIENT

Huh! What is an executor?

Where do you see this?

Mainly in newspaper reports and legal documents.


What does it mean?

An executor is the person appointed in your will who is responsible for distributing your assets to the beneficiaries when you die. To do so, he has to locate your assets such as bank accounts, insurance policies and properties.

Also, the will has to be submitted to the authorities and once approval is obtained, the executor is then empowered to act on behalf of the deceased's estate.


Why is it important?

It is only sensible to choose someone you trust as the executor of your will. In most cases, people appoint their spouses as executors. The executor's role can be very demanding as there are many responsibilities.

For instance, he will have to manage the selling of your assets if you have debts to settle. He must also monitor and record all income and expenses the estate pays out and receives. Depending on how contentious the beneficiaries are, it may take many years to settle an estate.

The executor is likely to engage legal assistance, especially in complex circumstances. If he manages the deceased's estate carelessly, an executor is also liable to be sued for any action taken on behalf of the estate.


So you want to use the term? Just say...

My aunt has appointed me as the executor of her estate as she is a spinster and I'm her most-trusted niece.

Lorna Tan