Executor of will a dubious honour

Working out an executor of a will is extremely important. Source: Supplied

BEING the executor of a will might appear to be an honour, but it can also bring major problems and liabilities.

Many people appoint a friend or family member as executor, to ensure the instructions in their will are carried out appropriately.

However it can expose the person to legal action and years of stressful work. As well as family feuds, complicated asset disposals and funds to allocate, there is also the danger the executor can be sued for not doing the job properly.

"Most people feel comfortable appointing a friend or family member as an executor, and believe it is an approach that will also save money," Equity Trustees spokeswoman Anna Hacker says.

"However, an inexperienced, incompetent or distracted executor can cost an estate and the beneficiaries a great deal of money," she says.

"In fact, they could be liable to the beneficiaries for any negligent management of the estate that may arise from their lack of expertise, and lack of understanding about the role of executor is not an excuse."

Some of the issues include dealing with capital gains tax, income tax, investment decisions and superannuation, and deciphering ambiguous instructions or bequeaths.

The problems multiply when a will is not professionally prepared in the first place, or if it is challenged by a beneficiary or third party, according to solicitor Jason Goode.

Emotional stress is another major hurdle for many executors, as often the role is given to someone close to the deceased.

"You have to organise the funeral for a loved one, which is heart-wrenching to go through, then sort out all the personal belongings, identify assets, find the assets, look for the paperwork; all of that can be fairly tough on someone," Goode says.

"If the will maker hasn't provided sufficiently for someone, that can also result in a claim against the will which you also have to manage."

Executors of an estate can get help from a specialist solicitor or seek advice from the public or state trustee.

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