Surviving spouses and adult children often serve as executors while they stand to acquire assets from the deceased’s estate. Your executor must be: 1. at least 18 years old, and 2. of sound mind -- that is, not judged incapacitated by a court.Like many states, New York also prohibits people who have felony convictions from serving as an executor.(N.Y. Before a will is deposited with the proper county court, the executor holds control over it. •    Managing financial accounts and real estate An executor can be a beneficiary of a will. Notifying other beneficiaries will be easier because they’ll likely be members of your family or close friends. It is a serious role that requires your attention and possibly exposes you to personal liability. This is common practice, where a spouse appoints the wife or husband as the executor of an estate that he or she will be a beneficiary. An executor manages a deceased person’s estate and a beneficiary is an individual who will inherit that property. Executors must be at least 18 years old and must have the mental capacity to serve. In order for an executor to inherit from a will, they must be named as beneficiary because an executor is not automatically entitled to inherit from the estate. If you are a beneficiary, that means that you probably had a close relationship with the deceased. It is not an unusual arrangement. Executor beneficiary It is not uncommon for an executor of a Will to also be a beneficiary of the estate. What to do when someone dies It is not an unusual arrangement. attorneyalbertgoodwin@gmail.com, Albert Goodwin, Esq. Managing an estate takes a lot of time. Can an executor override a beneficiary? Can an executor of a will be a beneficiary? Step-by-step explanation of probate More often than not, that beneficiary/personal representative is a family member or very close friend of the deceased. That said, think carefully before appointing a bank or trust company to represent your estate. Many executors of a will who are beneficiaries are not experienced at handling business, financial or legal matters. So if an executor withdraws cash from the estate account, he is considered by the law to be taking everyone’s money, not just his own. Not only do you need to oversee the transfer of assets to the proper beneficiaries, but you also need to pay debts, close accounts and wrap up other miscellaneous affairs for the deceased. Surr. But can a personal representative of a will be a beneficiary, too? Ct. Proc. This presents an unavoidable conflict of interest. Alternatively, you could pick a professional executor. For example, in one New York case, an executor sought to evict the beneficiary (an infant) and the beneficiary's mother from a condominium that the beneficiary had a valid interest in, because the mother had not been paying the use and occupancy fees; the executor had been. Yes, an executor can be and generally is a beneficiary of a will because of the testator of the will typically choose a family member who has a full understanding of the testator’s wishes and the assets in which they have in stocks, bonds, real estate, and other financial vehicles. If there are individuals that need to be paid ongoing salaries to maintain estate assets, the executor is also usually responsible for this. Can the executor-child withdraw cash from the estate and say that he is just withdrawing his own cash? SmartAsset has a, When doing estate planning, it’s important to look at all of your assets, including any. In most cases, executors may even show the will to interested parties upon receiving a reasonable request. While that might seem strange, it’s actually a fairly common occurrence. Act § § 103, 707.) It is common for adult children to be executors for their deceased parents, whilst also being a beneficiary. Basically, yes. So, an executor can’t change the will without the permission of the beneficiaries. The executor cannot change the last will and testament. It’s usually spouses who appoint one another as their sole executor and beneficiary. Can an executor of a will be a beneficiary? The executor might reason, don’t some of the money in the estate account also belong to him? In these instances, the executor of the will may also be one of the beneficiaries named in the will. New York, NY 10006 In fact, the majority of executors are beneficiaries! Tel. You … When making a Will, people often ask whether an Executor can also be a Beneficiary. (20 Pa. Cons. While you can name a corporation as your executor, it must be authorized to act as a fiduciary in Pennsylvania. This makes sense, as executors are better able to perform their duties when they are familiar with the decedent’s situation. If there's property in more than one State The short answer is yes. The answer to that is absolutely not. To avoid allegations of taking money from others beneficiaries, an executor should ask other beneficiaries to sign a waiver and release before distributing any funds. •    Handing and resolving disputes In short yes, an executor can also be a beneficiary. Generally speaking, convicted felons do not qualify to serve as executors. For example, a brother and sister or husband and wife may appoint the other person as the executor of and beneficiary to the same will. The answer is yes, it's perfectly normal (and perfectly legal) to name the same person (or people) as both an Executor and a Beneficiary in your Will. How Much Do I Need to Save for Retirement? The advantages of having a beneficiary serve as executor are fairly easy to suss out. An executor is the person authorized to act on the estate's behalf, to sell any property that is not devised to anyone, and ultimately to distribute proceeds from asset sales to the beneficiaries. However, an executor can’t steal from the estate, refuse to communicate with beneficiaries, or needlessly delay payments. However, problems can arise when the executor is also a beneficiary. To help with the responsibilities of the estate, it is recommended that an executor-beneficiary obtain the services of an experienced estate attorney. The short answer is yes. Serving as the executor of a will can be a bigger time commitment than many people might expect. The executor of a will is chosen by the testator at the time of the making of the will. Many executors are attorneys or accountants who may not know the deceased very well. There are also some parents who appoint one or all of their adult children as co-executors of their estates. At the same time, it’s okay if you don’t want to make your executor a beneficiary. For example, a lady left her inheritance to her four children, and one of the children is an executor. If an executor to a will can also be a beneficiary of that will, then the executor directly does benefit from that will. Jessica Lo, associate at Lindsay Kenney LLP in Vancouver, says appointing a beneficiary as executor can be ideal if testators first assess family relationships. If the executor of a will is one of multiple beneficiaries, that can also be tricky. But doing so may expose the executor to risks of litigation and liability even if … Ann. For initial advice about making a will or to get a fixed cost quote call our will writers. Compare the Top 3 Financial Advisors For You, If you’re planning your estate or just searching for help with financial planning in general, a financial advisor can be a huge help. Can the Sole Beneficiary of a Will Act as the Executor of the Will? The Executor’s Role. Locating the deceased’s assets will be simpler, as you may have already discussed it with the decedent before she died. The perception of inequality within the family remains a key source of estate litigation, she explains, and appointing an adult child to be your executor could add to that perception. An executor can also be a beneficiary under the will, so it is possible to select your spouse or an adult child as long as the executor is over 21, not a bankrupt and is of sound mind. An executor, or “personal representative” as it is called in Arizona, is the person you can designate to communicate and enforce the provisions of your Arizona last will and testament. •    Selling real estate If there’s nothing left after that or the liabilities of the estate exceed the assets, the beneficiaries won’t receive an inheritance. Furthermore, this arrangement is very common. The Will maker may also appoint another family member as executor, such as an adult child. Probate courts in several states prioritize beneficiaries over other individuals when appointing executors. If families feel an executor has abused power, they must bring a petition to the court. Yes. Photo credit: ©iStock.com/kate_sept2004, ©iStock.com/artisteer, Bank of America® Travel Rewards Visa® Credit Card Review, Capital One® Quicksilver® Cash Rewards Credit Card Review, estates are only taxed above a certain threshold, 7 Mistakes Everyone Makes When Hiring a Financial Advisor, 20 Questions to Tell If You're Ready to Retire, The Worst Way to Withdraw From Your Retirement Accounts. The executors of a will have a duty to act in the best interests of the estate and the people named in it. Despite the potential for conflicts of interest, it’s quite common for beneficiaries to serve as executors. For instance, if the estate has substantial debts to pay off, the executor may need to pull from the assets that would otherwise go to beneficiaries. Witnesses are supposed to be independent and impartial. No. An executor of a will is the person named in the will who is responsible for arranging the allocation of a deceased person’s property and carrying out their wishes. Beneficiary Executor Conflict When a Beneficiary and Executor conflict arises, it can either be a conflict of interest or that a Beneficiary and Executor are conflicting on the perception of the estate’s mismanagement and lack of transparency. Can an Executor of a Will be a Beneficiary in Arizona? Although it is usually appropriate to appoint beneficiaries as executors in these cases, difficulties can arise where only some of the beneficiaries are appointed as executors. The decedent may also choose to name a sole beneficiary and another unrelated family member who may have more time, or who is better qualified and has more experience in handling business and financial matters as co-executors to share tasks or certain responsibilities. An executor can delay payments to beneficiaries to pay taxes and debts on the estate. Is Probate Required When Someone Dies in New York? § 3156.) •    Meeting court deadlines and estate tax return deadlines Yes. An executor can be a beneficiary but under no circumstances should they also be a witness to the Will in which they are named. It’s actually pretty common. Even though the executor is one of the beneficiaries of the will, at the end of the day the estate is not his. This makes sense, as executors are better able to perform their duties when they are familiar with the decedent’s situation. Some of the Executor duties include: Making funeral arrangements And in fact this arrangement is quite common. In many ways, it’s more efficient and less complex when that’s the case. This would be either a lawyer or a trust company licensed by the Monetary Authority of Singapore. The executor can liquidate assets to pay the bills of the estate or use the funds in the estate to pay these bills. This is why it’s important to make sure whomever you name as your executor is someone you trust deeply. If he withdraws a penny, most of that penny belongs to the other beneficiaries. In most cases, beneficiaries can’t go to the court and contest an executor simply because they disagree with one or more of the executor’s decisions. When there is a large estate with assets that need management, the testator sometimes appoints a neutral a third party such as an attorney or a financial institution to act as a co-executor. 45 Broadway, 27th Floor A New York probate and estate lawyer to help them with the administration and management of the estate. Being an executor can be a lot of work and a thankless job. If you are an executor and beneficiary of the same estate, you actually have quadruple incentive to make sure you are doing the best job possible. •    Distributing assets and winding up and closing the estate. While a beneficiary can be named as the executor, it is important to also make sure your executor meets the requirements established by the laws of your state. Someone close enough to the decedent to be a beneficiary would have that familiarity and more. For example, you will often see a husband and wife both nominated as the beneficiaries and executors in each other’s Wills. An executor who is a beneficiary is just as responsible as a non-beneficiary to follow the law and their fiduciary duty to the other beneficiaries. Finally, your executor … As a general rule, it is considered to be a best practice for executors to keep beneficiaries in the loop regarding the probate process. While those laws can vary, there are some commonalities. A beneficiary of a will is a person named in the will as someone who will inherit money or property, or benefit from a trust. All of those are valid arrangements. The most important thing is to make sure that the executor you name in your will is someone you believe to be competent and trustworthy, regardless of whether you’ll also be leaving them a gift. When there is a large estate with assets that need management, the testator sometimes appoints a neutral a third party such as an attorney or a financial institution to act as a co-executor. But that does not mean that they should not be careful. A beneficiary is a person named in a person's last will as a recipient of certain assets. Can an executor of a will be a beneficiary? Having to handle the day-to-day affairs of that person’s estate could potentially drag out the grieving process. Arizona law allows an executor to be a beneficiary also. •    Approving and denying creditor’s claims What Should I Check When Buying a House from an Estate in New York? As an example, if he withdraws four thousand dollars in cash, he is not considered to be taking four thousand dollars of his own cash from the estate account. Losing someone close to you is never an easy experience. Beneficiaries and executors. But the will’s executor can’t do this alone. The attorney can also be of great assistance in helping the executor perform the required tasks, such as: •    Locating assets of the decedent Yes, the Executor of a Will may be specified in a Will as a Beneficiary. Yes, it’s perfectly legal to make the executor of your will a beneficiary as well. Unfortunately, there’s always the potential for negative consequences when the executor of a will is also a beneficiary. Someone close enough to the decedent to be a beneficiary would have that familiarity and more. It’s actually common for a will’s executor to also be one of its beneficiaries. In order for the court to remove an executor, someone (usually a beneficiary) must prove that the executor has engaged in misconduct or is otherwise incompetent. A Note on the 2013 Lifetime Federal Estate Tax Exemption and Portability Rules, How Forming a Life Insurance Trust Helps Save Money on Estate Taxes, If there's property in more than one State. While the executor and beneficiary can be the same person, you should give it some thought when drawing up your Will. This would be the case if she was under 18 years old, if she had a past felony conviction or if she was a non-relative living out of state in some cases. When an executor of a will is also a beneficiary, they may erroneously think that they can take money out of the estate before giving the other beneficiaries their share. If an executor has any interest that can possibly interfere with the estate’s administration, the court may remove him/her from the position. More detailed FAQ, 212-233-1233 Yes, an executor can override a beneficiary and they often do. Yes. The probate court system actually favors beneficiaries serving as executors in some cases. A court petition can challenge an executor. It is recommended that an executor seek the legal representation of a knowledgeable New York probate and estate attorney in order to be more successful in getting the executor removed and having the beneficiary appointed. In fact, the majority of executors are beneficiaries! 718-509-9774 Since estates are only taxed above a certain threshold and executor fees are taxed as ordinary income, you could avoid losing any of the estate to taxes by waiving the fee. Consequently, your relationship with the deceased will make your job as executor quite a bit easier. If the executor was an attorney or an accountant with little exposure to the decedent before appointment, these processes could be slower or more complex. An executor may lack the necessary standing to bring an eviction action against the beneficiary. Either way, Beneficiary, and Executor conflicts are common, and transparency and a good sense of reason are the best antidotes. Withhold assets from beneficiaries; Stop a will challenge; While the executor can draw compensation from the estate for the duties performed, the state limits the allowable amount. 0333 060 4204 The timeline for probate Stat. In the case where you are serving as both executor and sole beneficiary, you can also waive the executor fee, which would come out the estate and potentially lessen the inheritance you and your fellow beneficiaries receive. The executor may have to determine how his bequest and the bequests of the other beneficiaries will be affected. In all states in the U.S., the person who is appointed as an executor can also be named as a beneficiary. How does probate work? When I was an executor, I distinctly remember not wanting the estate to reimburse me for my out-of-pocket expenses as I didn’t want the other beneficiaries to think I … Rather, he is considered to be stealing a thousand dollars from each of his siblings. •    Making accountings Yes, an Executor of a Will can also be a Beneficiary of that Will. Notably, being a beneficiary and an executor at the same time is not enough for the court to declare a conflict of interest. \"Standing\" is a legal term referring to a party's ability to bring a lawsuit. However, many times the executor is a close relative or spouse of the decedent (the person who has died). After all, the friend or family member you trust the most is usually also someone you’d want to leave a gift to. (212) 233-1233. The estate belongs to all the beneficiaries. It is technically possible to make changes to a will by creating a deed of variation. Undue Influence in a New York City Estate. Most people like to appoint a family member such as a surviving spouse or child to handle their estate after their death. The only typical situation in which a beneficiary couldn’t also serve as executor would be if the individual was generally unqualified to serve as executor. It’s actually common for a will’s executor to also be one of its beneficiaries. Yes, an executor can be a beneficiary in a will. It is the executor’s express duty to act in the best interest of the beneficiaries and estate, and to carry out the probate process, including distributing inheritance assets to intended beneficiaries and heirs. It’s unlikely the decedent would have left you a bequest if you didn’t. An executor technically may sell property, pay debts and make distributions without the beneficiaries’ input or overriding their direct wishes. 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