The following narrative is factual, albeit with modifications to names and non-essential details to safeguard privacy, and demonstrates the importance of choosing the correct executor.
Jordan, a 61-year-old gentleman with autism, requires perpetual care and supervision due to the severity of his condition. Throughout their lives, Jordan’s parents ensured he had everything he needed and made provisions for his care in their absence. They endeavored to secure a future in which Jordan could continue living in the familiar environment of their family home. By 2000, Jordan’s parents had passed away, leaving an estate worth $1.2 million due to their frugal lifestyle and the father’s two-job commitment.
An Unexpected Deviation
How Alex Smith was designated as the executor or personal representative of Jordan’s father’s estate upon his death remains uncertain, yet the consequence of this decision was nothing short of catastrophic. Accusations of embezzlement led to Smith’s arrest, and by the time a replacement executor was appointed, the estate’s assets had diminished to under $300. Little is known about the likelihood of asset recovery from Smith.
Simultaneously, Jordan’s expenses for care escalated, necessitating the sale of the family home, possibly for a value less than its potential worth under standard conditions. Consequently, Jordan had to move into a residential facility for disabled seniors.
This tale does have some consoling elements. Jordan receives regular visits from empathetic neighbors and appears to be adapting to his new living situation. Legislative action is underway in Jordan’s state to shield individuals with developmental disabilities from financial malpractice.
An Alternate Approach
Undeniably, the primary error was the appointment of an unsuitable executor. Selecting an executor should be a thorough deliberation process beyond simply identifying a trustworthy individual. The dearth of expertise and experience can be financially detrimental.
The executor’s mandate is to finalize an estate promptly, efficiently, and cost-effectively. This involves myriad responsibilities, including arranging for probate, asset management, and protection, addressing creditors and claims, filing tax returns and making due payments, and distributing the due amount to beneficiaries after settling all expenses and taxes.
Our Expertise
When entrusted with settling your estate, we bring all the required skills and knowledge to the table. Consider the ensuing advantages of our professional corporate executor services:
- Specialized Expertise: The intricacies of contemporary estate settlement necessitate specialized knowledge in investments, taxes, accounting, real estate, and probate procedure. Minute attention to record keeping, correspondence, and other details is imperative.
- Constant Accessibility: Given the extensive work that needs to be completed within a specified period, your executor should be readily available and free from external distractions.
- Uncompromised Financial Security: Our estate settlement services are fortified by substantial capital and resources, ensuring your executor is financially secure. We are not required to provide surety bonds at your estate’s expense.
- Impartiality: We have a responsibility to treat all beneficiaries equitably, precluding the likelihood of favoritism. Our wealth of experience in estate settlements has instilled in us the importance of empathy, understanding, and consideration when advising beneficiaries during a particularly emotional period.
- Cost-effectiveness: Executor fees are typically the same whether a corporate or individual executor is employed. The actual cost-saving potential of an experienced executor lies in the ability to circumvent errors and delays and identify cost-efficient alternatives. Inexperience can cost an estate significantly, even if no service fee is charged.
Connect with Us
Our expertise as an executor can provide significant benefits in ensuring your family’s security and well-being. If you have concerns about the burden of responsibility on the executor named in your current will, or if you’re ready to appoint an executor, we’d be pleased to elaborate on the many advantages of employing our dedicated team of full-time professionals to manage your estate.
If you are a Legacy client and have questions, please do not hesitate to contact your Legacy advisor. If you are not a Legacy client and are interested in learning more about our approach to personalized wealth management, please contact us at 920.967.5020 or connect@lptrust.com.
This newsletter is provided for informational purposes only.
It is not intended as legal, accounting, or financial planning advice.
