Being asked if you want to be an executor and thus settle someone’s estate often feels like an honor. Rightfully so as far as I’m concerned, because it means a lot of trust is placed in you. But do you actually know what you are saying “yes” to? Practice shows that the answer to that is more often “no” than “yes.” All the more reason to devote a blog to this!
Appointment as executor
Since 2003, it is no longer possible to appoint an executor in a codicil (or self-written, signed document). An executor can now only be appointed in a will. However, this does not mean that you have to accept the appointment. As an intended executor, you have the choice whether or not to take on this task.
Do you decide not to accept the appointment? Then the task will fall to the next in line. At least if it was appointed in the will. If not, then the heirs must settle the estate together.
Duties of the executor
There are three types of executors:
- The 1-star executor – the funeral executor
- The 2-star executor – the management executor
- The 3-star executor – the executor-settlement administrator
1-star: the funeral executor
The funeral executor only has the authority to arrange the deceased’s funeral. Other than that, he or she has no control over the estate.
2-star: the management executor
The managing executor is responsible for managing the estate and paying debts. Examples include:
- Debts incurred during the deceased’s lifetime
- Funeral costs
- Any legitimate portions
- Dispensing bequests from the will
In addition, the executor may sell goods from the estate, but only if necessary to pay debts. Are there no debts? Then the executor may not sell anything without consulting the heirs.
3-star: the executor-settlement administrator
This executor has the most powers. In addition to managing the estate and paying debts, he or she may also distribute the estate.
Compensation for the executor
By law, an executor is entitled to a remuneration of 1% of the value of the estate on the date of death. The will can deviate from this, such as by setting a higher or lower percentage or no remuneration.
The executor and the probate lawyer
We can advise and support you as an executor. Have you been appointed executor? Then an estate lawyer can help you understand your rights and obligations under the law and the will.
In addition, a probate lawyer can assist you if you become involved in legal proceedings or if, as executor on behalf of the estate, you wish to initiate proceedings yourself. It is also possible for a probate lawyer to be appointed as (successor) executor.
Want to know more?
If so, contact Kimberly Rozema, Kim van der Bijl or one of our other inheritance law specialists to discuss your situation.
