How Probate Works. A Guide for Executors, Heirs, and Families.

E219 What Happens to Your Stuff Upon Death? Probate vs Non-Probate Assets

E219 What Happens to Your Stuff Upon Death?

It is helpful to know what happens to your probate vs. non-probate assets when thinking about your estate plan or your future inheritance. Do you really know how assets transfer upon your death? You may think there is a shortcut to use in your estate planning but read below to see what really happens.

First, there are in-court and out-of-court assets. In-court means that there is a type of asset that has to go through the probate court. Probate court is an extremely specific court that every county in the country has. Their job is to make sure that assets transfer properly. They make sure that the Will is correct and real, and that the proper heirs are notified. If someone dies with a Will, it’s called the probate process. If there is no Will, it is called the intestate process. By default, anything in your name or your name alone will go through probate.

What are the advantages of probate assets?

In general, the pros are related to a legal finality.

  1. By going through the probate process there are safeguards in place. The court has procedures in place to protect people who may not be able to protect themselves. For example, if you are survived by minors (children) who don’t have the maturity to look out for their own interests, the court can appoint a temporary guardian. If you are survived by an heir with special needs, there is a procedure in place to make sure their best interests are protected.
  2. Probate has processes to make sure final creditors and taxes are paid. If you close the estate properly, there won’t be lingering taxes. If you follow the probate procedure, you won’t be sued later by someone who comes after the estate. There is a 7-month statute of limitations against creditors once probate has taken place. If an executor is appointed on January 1st, any creditor (including the IRS) has 7 months from January 1st to submit their bill or claim. If they don’t do it during that time, they are out of luck.
  3. Probate is all in a centralized place. If someone lived and died in Manhattan, and the next living heir lives far away, he might not know where the decedent stored his/her Will. However, if he knows that the person died in Manhattan, he can contact that courthouse to see if someone set up an estate.

What are the drawbacks of probate?

The cons are generally related to dealing with a government entity.

  1. Probate process is slow. It can take from 9 months to a few years, and in some cases, even longer. It is long because there is a 7-month waiting period for creditors. There is a lot of paperwork to circulate among the heirs, executor, and court. Oftentimes these forms still need to be mailed, and sometimes these documents even have to be notarized. If multiple heirs have to get papers notarized, it can cause a lot of delay and friction. The process of using paper and wet signatures is unfortunately antiquated.
  2. Another drawback are costs. You’ll need to pay court fees, attorney fees, accounting fees, Executor commissions, etc. All these things added up can be tens of thousands of dollars.
  3. Probate is public. If you are a celebrity or a very private person, maybe having your private affairs accessible by the public is not desirable. For example, if you are in New Jersey, you can pull up James Gandolfini’s Will because his estate went through probate. This is also true for Prince and Frank Sinatra. If public access bothers you, then you may want to consider a non-probate method when planning your estate.

Examples of Non-Probate Assets

Probate means you have to go through court. The other option is having non-probate assets. These assets are anything with a named beneficiary or a named/joint owner. One example is life insurance. A life insurance company, for example, might require the beneficiary to turn in a claim form and death certificate in order to receive the money. This is a good thing to set up so there is some cash available while doing the rest of the probate.

Other examples of non-probate accounts are IRAs, retirement accounts, 401(k)s. There are tax benefits for naming your spouse or children as beneficiaries on IRAs and 401(k)s (talk to your tax advisor!).

If you are joint owners of real estate, the survivor automatically owns the whole thing. For example, a husband and wife own a condo in Manhattan. Husband dies, and the wife immediately owns 100% of the condo.

Even bank accounts can be set up as non-probatable assets. You can add a joint owner or use another method such as ITF (in trust for, TOD (transfer on death), POD (paid on death), Totten trust, and many other options.

Trusts are also non-probate assets. These can be revocable, living trusts, or grantor trusts. They act as a wrapper that you put around your assets so that they are no longer owned by you. Rather, they are owned by a trust with its own instructions with what happens when you pass away. These are used to avoid probate court.

You Can Change Your Assets from Probate to Non-Probate Anytime

Let’s’ say that I bought a house before I got married, and it is my name alone. Then I can update the deed to add my wife after we married. I can add my wife easily to a bank account, etc.

Beware: Non-Probate Assets Override Wills

This is extremely important to understand. Let’s say my wife and I have our first child and I go through all of our accounts and name the baby as the secondary beneficiary. Then we have more kids and I forget about the beneficiary designations. Now that I have a big family, I decide to have a Will drafted to leave everything to my wife. If she dies, then I leave everything to my kids. However, the Will only controls anything that comes through probate. So, those beneficiary designations naming my first child will not go through my estate. Then my other kids get nothing from those accounts, even though I named them in the Will. This happens all the time – people forget!

Making Everything Non-Probate is NOT Estate Planning

You might think that making everything non-probate will save time and money. Don’t do that. Here’s why: people forget! Your monthly bank statements do not list your beneficiaries; there are no reminders for updating! Unless you are one of the few conscientious people who remember to update all account beneficiaries, there will be something that doesn’t match your intentions when you die.

For example, Kurt was in love with Jasmine. They weren’t married, but Kurt added Jasmine as beneficiary to his savings account. Unfortunately, Kurt and Jasmine separated. Decades later, Kurt got married and had a daughter. He had a very long, fulfilling life and all the while he maintained that bank account. When he passed, his daughter was going through the estate assets and had to find out why someone named Jasmine was getting all that money!

Hopefully, my examples have been helpful to you in your estate planning or in administering a loved one’s estate. Please check out my book, “How Probate Works,” which covers this and a lot of other topics.

E217 Executor Dies During Probate

E217 Executor Dies During Probate

What happens if the executor dies during probate? It depends on how far along you are in the probate process.

Probate Court Process Just Started

If no one has been officially appointed yet, you either restart the court process or amend your original papers.
Probate court process just started
For example, Matt’s dad died and his mom hired a lawyer to start probate to appoint her as executor. But before it was finalized, she passed away. The court allowed Matt to amend his mom’s papers to name him as executor instead. This saved Matt a couple of weeks in the process, rather than starting over from scratch.

What Does Administrator DBN Mean?

If the executor has already been appointed, then you must ask the court to appoint a new executor. Unfortunately, getting the administrator de bonis non (dbn) swapped in is about as time consuming and complex as getting original letters.
What does administrator dbn mean?
The Latin term de bonis non administratis means, “goods not yet administered.” Once appointed, the administrator dbn is substantially the same as any other executor.

When Estate Is Almost Complete

If the executor has already gathered the assets, completed tax returns, and only accounting is left, the court may allow the executor’s executor to close the estate.
When estate is almost complete
Let’s say that Matt’s mom did almost all of the work and right before her husband’s estate was done, she passed away. Matt is his mom’s executor. As his mom’s executor, he can come in and finish up the accounting as the executor of the executor. This is a niche situation that the court allows when there is almost nothing left to do for the estate. But most of the time, the court will demand that an administrator be appointed.

Request your free consultation

Sign-up for your free consultation using the form above, and I’ll be happy to email you a free chapter from Anthony’s best-selling bookHow Probate Works.”

E215 What Happens if You Delay Probate

E215 What Happens if You Delay Probate?

A recent example of headaches and costs if you delay probate: Lou’s mom died owning a co-op apartment in New York. Since there was no mortgage, Lou and his sisters didn’t think there was any rush to deal with it. More than a year passed, and the co-op wanted clarity on who the legal owner is. Lou and his sisters each took turns saying they’d handle it, then dropped the ball. Finally, the co-op got tired of waiting and took action.

Co-op Foreclosures in NYC

Co-op foreclosures in nyc

The co-op began a foreclosure proceeding. Condo and co-op foreclosures aren’t just for missed mortgage payments. Foreclosures are also for missed maintenance payments and to clear the title. In this case, the co-op board doesn’t necessarily want the money. They want control so that they can put the apartment on the market and sell as they see fit.

The proceeds from the sale would ultimately go to Lou and his siblings, but they would have no control over the process. And, the co-op’s legal fees will get paid from the sale proceeds.

Someone Else Will Probate

The co-op doesn’t want to be the administrator of someone’s estate. So, the co-op asked the court to name the Public Administrator (PA) to be the executor for Lou’s mom’s estate.

Someone else will probate

As we’ve discussed before, you don’t want the PA in charge of your estate. The PA may be competent, but they are probably not the best fit for your needs in estate administration.

Now that the co-op asked the court to appoint the PA, Lou can’t simply ask the court to become the executor instead. Now Lou and his sisters must fight off the PA (and the PA’s legal fees) if they want to keep control of their mom’s estate.

How Long Do You Have To File Probate After Death

There is no official rule or deadline for how long you have to file after death. Maybe after three months you are still paralyzed by your loved one’s death that you weren’t ready to move forward. Maybe by six months you are overwhelmed in trying to find a lawyer. But the court will start losing sympathy for you after about a year. The court understands that you need time to grieve, but getting started sooner is better.

How long do you have to file probate after death

Of course, Lou’s example is not the only way delaying probate can cause problems. Start talking to an attorney as soon as possible to understand the process. If you reach out to an attorney, they will not sit on your case for a year. They and their team will start working on the process while you are grieving.

Request your free consultation

Sign-up for your free consultation using the form above, and I’ll be happy to email you a free chapter from Anthony’s best-selling bookHow Probate Works.”


E212 How Does Probate Court Know Who to Notify?

After we published When Does the Executor Tell the Beneficiaries, many listeners and clients have asked: how does the court know who to notify?

Great question; the answer depends on who the heirs are.

If survived by many heirs

If the person who passed is survived by many heirs, the court relies on a system of checks and balances. The court sort of assumes that one of the other heirs will step up and say something is something is out of whack.

If survived by many heirs

For example, let’s say that there are actually seven nieces and nephews, but only six people have signed off on the court papers. The assumption is that one of them would mention the missing seventh person. The court will likely rely on the fact that the family members will keep each other in check.

If survived by one close heir

If survived by one close heir

Perhaps the person who passed is survived by only one heir, such as a sole spouse or an only adult child. The court needs an “affidavit of heirship” or “family tree affidavit.” This is a document that someone else must sign, swearing under oath that this is how the family tree looks. The person who signs the family tree affidavit can’t be the sole surviving spouse or child, or the sole heir’s spouse or child. So, who’s left? Usually you can use another relative (who doesn’t inherit), a longtime friend, or clergy.

If survived by distant heirs

If survived by distant heirs

“Distant heirs” can mean a couple different things. Your situation falls into this category if the family tree heirs involve first cousins or similar. It’s easy enough to prove that the person who passed had five children. But, once there are a certain number of distant heirs, the court needs proof of relationships. The court may require a genealogy report to prove complicated relationships. It is easier for the court to understand the family tree when it’s laid out on paper. In addition to the professionally verified genealogy report, the court may require a court-appointed third-party (usually the public administrator) to review and confirm the family tree. It is another method of checks and balances to make sure one side of cousins isn’t doing something to the exclusion of others.

In conclusion, you can’t go to the court to simply tell them who you are and get the estate moving. There are steps in place to keep people from doing so.

Request your free consultation

Sign-up for your free consultation using the form above, and I’ll be happy to email you a free chapter from Anthony’s best-selling bookHow Probate Works.”

E209 Do Tenants in Common Need Probate_

E209 Do Tenants in Common Need Probate?

In a recent case, Liz’s dad had bought a co-op with his girlfriend. Liz’s dad broke up with his girlfriend but continued to co-own the apartment as “tenants-in-common.” Liz’s dad passed away, so what happens to the co-op now?

What Happens When a Tenant in Common Dies?

What happens when a tenant in common dies?

Unless there is a specific percentage for the tenants in common, the property divides equally.

If they had owned as “joint tenants” instead of “tenants-in-common,” then the girlfriend would become sole owner. But, the co-op shares certificate states “tenants in common.” So the girlfriend is a half owner, and Liz’s dad’s estate is now a half owner.

Is Probate Required for Tenants in Common?

Is Probate Required for Tenants in Common?

The short answer is yes. Liz and her siblings must probate their dad’s estate to inherit their half share of the co-op. Right now, Liz and her siblings must appoint an executor who has legal authority to conduct business for the estate. A court-appointed executor has the right to enter the premises, to gain information from the co-op, and eventually to sell the property.

Request your free consultation

Sign-up for your free consultation using the form above, and I’ll be happy to email you a free chapter from Anthony’s best-selling bookHow Probate Works.”

E207 Hire a Professional Executor for your Insolvent Estate

E207 Hire a Professional Executor for Your Insolvent Estate

Going through probate is a grueling 1-to-2-year process. Would you want to go through all that if you don’t even get anything out of it?

If you think the estate may be insolvent, consider hiring a professional executor.

What’s an Insolvent Estate?

What’s an insolvent estate?

An insolvent estate is when the decedent’s debts are greater than the assets. For example, the mortgage, credit card debt, and medical bills are greater than the value of the house and bank accounts.

There are also situations where the estate is close to being insolvent and you don’t realize it. Examples of this are Medicare clawback and unseen taxes. If you received medical care paid for by the government, the government will want the money back when you die. This could leave your estate with a large bill. Additionally, the IRS will look over your taxes carefully to be sure they didn’t miss anything.

Who Must Probate the Estate?

Who must probate the estate?

Many family members and heirs ask: am I required to be executor? The answer is no! You can decline or not act at all. Although, some may feel like they are dishonoring their deceased loved one by leaving the estate as a mess.

If you think the decedent is close to having an insolvent estate, you have options.

One not-so-great option is to let the state take over. There’s a state office (sort of like the public defender, but called a public administrator) that can step in. But, the interest in the estate and the incentives might not be the same as a person who you hire to help.

Instead, Hire a Professional Executor for the Estate

Instead, hire a professional executor for the estate

A better option is hiring a professional executor. You won’t have to do the stressful work yourself and you don’t have to feel bad about abandoning your loved one’s estate to the public administrator.

Even if the estate is NOT insolvent, you now have a relationship with the hired executor. This helps to make sure you get your inheritance. If the estate IS insolvent, then you can relax knowing that a professional is there to wrap up the estate.

Free copy of “The Solo Ager Estate Plan”

The Solo Ager Estate Plan Cover 3D

Complete this form to receive your complimentary copy of Anthony’s Amazon best-seller, “The Solo Ager Estate Plan

E206 How to Set Up a Bitcoin Revocable Trust

E206 How to Set Up a Bitcoin Revocable Trust

Cryptocurrency (such as Bitcoin) is a new and unique asset. It’s sort of like cash, personal property, and intellectual property all in one. You need to plan for this type of asset in a different way than you would for your bank or brokerage account.

If you want a revocable trust for your bitcoin, you’ll need both a legal plan and a technical plan.

What to Include in Your Bitcoin Estate Plan?

If you want your trustee to hold bitcoin, you can’t rely on the same old boilerplate trust language. You’ll need to tweak a few things for your legal plan to work.


Opt-out of the prudent investor rule

Most trustees must follow the Prudent Investor rule, which (roughly) says the trustee may be liable for losses if he doesn’t invest the trust portfolio according to legacy investment principals. For example, 60% equities, 30% bonds, 10% cash. This doesn’t work for Bitcoin, since most people still consider it highly speculative. So a bitcoin revocable trust must include language opting-out of the prudent investor rule.

Access to devices and logins

What to include in your bitcoin estate plan?

Make sure to include language that gives your trustee access to your computers, devices, and logins. Without this, your trustee may technically be violating privacy laws.

Keep it flexible

It is important to keep your Bitcoin estate plan flexible since cryptocurrency continues to evolve.

Bitcoin in a Living Trust

With a traditional bank, you’d rename your account so that the trust owns it and not the individual. For example, you’d rename your personal checking account from “John Doe,” to “The John Doe Trust.”

But this won’t work if you hold your bitcoin on a centralized exchange. Currently, exchanges don’t open accounts for trustees. Nor do they offer beneficiary designations. So, to make a bitcoin trust, you’ll need to hold via a digital, hardware, or paper wallet where you control your keys.

Bitcoin in living trust

Think of your wallet as personal property, like artwork and other collectables that don’t have a deed or other record of ownership. One way to prove transfer of ownership for personal property is to sign a gift or assignment deed from yourself to your trust.

What Happens to the Bitcoin Trust Upon Your Death?

Now onto your technical plan: how to give access to your trustee when you die.

One solution is to “shard” your seed phrase and break it into chunks. For example, give half of the words to your lawyer, then give the other half of the words to another trusted person. Only upon your death will these two people be able to connect with each other to complete the seed.

A component of those plans could be a “dead man switch.” A dead man switch is where you routinely do something (ex. press a button) to indicate you are still alive. If you fail to press the button or miss two button presses, then it is presumed that you are dead. An email containing seed phrase then goes to your trusted people. (This is not a good plan, since it stores your seed on a ‘hot” device, the email server)

What happens to the bitcoin trust upon your death?

You could also give your seed to your trusted people in sealed envelopes. If this is worrisome, you could tell them to send you pictures to show that the envelope is still sealed (not ideal, just brainstorming here!)

We have worked on several Bitcoin revocable trusts, and these are the types of situations we encounter. It is exciting for us to learn about cryptocurrency and work with our clients to protect these valuable assets.

Request your free consultation

Sign-up for your free consultation using the form above, and I’ll be happy to email you a free chapter from Anthony’s best-selling bookHow Probate Works.”

E205 A DIY Probate Story_ 4 Years Wasted

E205 A DIY Probate Story: 4 Years Wasted

This is “Sam’s” cautionary tale of trying to DIY his dad’s estate over four years, with zero progress. I like to call this a Sisyphus story. Sisyphus was a figure from Greek mythology whose punishment for eternity was to push a heavy stone up a hill, but right when he would get to the top, the stone would come sliding back down to the bottom for him to start over again for all eternity. That is what Sam has felt like for the past four years.

Sam’s story

Sam’s story

Sam’s dad died years ago in Europe, and Sam had court hearings in European probate courts where they were declared Sam and his siblings the heirs. But in Europe the probate process is much different than New York and the U.S., as there are no actual executors; the court just declares who are the heirs.

A couple of years later, the heirs discovered a U.S. bank account that they wanted to collect. Sam spent the next four years following bank instructions into a black hole. The bank would tell him to do one thing which led to months of playing liaison with the European courts and the U.S., only to be told that it was the wrong information. Each time this happened, Sam had to start all over again.

Finally, Sam called us, and we realized that we needed to start from scratch. Even after hiring us, Sam kept talking to the bank, which created more problems, mixed signals, and cross information.

Common Probate Mistakes

Common Probate Mistakes

The first common probate mistake is to rely on the bank’s “advice.” The bank is not an advisor. If anything, their incentives are to keep the money in the accounts.

The second common probate mistake is to underestimate the complexity of the situation. Many clients believe that they have a “simple” probate matter when they call our office for help. However, often after we ask them some preliminary questions, we find that it is actually a complex estate matter. Any time the estate deals with overseas factors, the situation is certainly more complex. This should have been a red flag for Sam.

Lastly, once an attorney is hired to handle the estate, it does not help for clients to continue to work on the estate. Clients may think that they can help reduce the amount of work or hourly cost if they do some of the probate work themselves. That is not how it works, and it could end up costing the client more to have the attorney fix the DIY mistakes.

Avoid Problems in Probate

Avoid Problems in Probate

The bankers are bureaucrats, not your advisors. If you are not getting headway immediately with a bank, get a professional to help you. An experienced probate attorney can navigate the bureaucratic banking problems.

Everyone thinks their case is “simple.” What someone thinks is simple is probably just the tip of the iceberg of complex problems or twists. How do you figure out if you truly have a simple case or a more complicated situation? Many excellent probate lawyers offer free consults, so use that consultation to find out. Lawyers offer free consultations for a reason! It helps the attorney and the client to see if they are a good fit for each other.

Lastly, when you hire someone, let them do their job!

Request your free consultation

Sign-up for your free consultation using the form above, and I’ll be happy to email you a free chapter from Anthony’s best-selling bookHow Probate Works.”

E203 Why You Need an Experienced Probate Lawyer

E203 Why You Need an Experienced Probate Lawyer

Linda spent six months working with a general lawyer (meaning someone who practiced personal injury, litigation, and a dash of probate on the side). There was not much progress in those six months, so Linda became frustrated and transferred the case to us. Sadly, we had to basically start from scratch, because the general lawyer did essentially nothing.

What causes probate delays? Bad lawyers

What causes probate delays?

In Linda’s situation, six months went by and it was as if nothing happened in her case. One of the reasons for the delayed probate was because the general lawyer did not know what preliminary Letters Testamentary were. An experienced probate lawyer would have noticed right away that Linda had a complicated probate and would have immediately filed for preliminary Letters Testamentary. If this had been filed immediately, Linda could’ve started “executor-ing” months ago.

Another reason probate can be delayed is drafting the Petition wrong. In Linda’s case, the general lawyer didn’t understand which family members must be notified, and therefore hadn’t even begun collecting their contact information.

Lastly, probate can be delayed because a general lawyer might not realize that the Will isn’t properly witnessed. (As a side note, this is a good reason to find an experienced attorney to draft your Will). Getting the correct witnessing on a decedent’s Will takes a lot of time, including tracking down the witnesses and having them sign affidavits. An experienced probate lawyer would notice the incorrect witnessing and get started on the correction process immediately.

As with any practice, if a lawyer does not have much experience in a certain area of law, he or she will probably miss important details and cause delays.

When a lawyer gives bad advice

When a lawyer gives bad advice

In Linda’s situation, her deceased relative owned an income-producing property, and the general lawyer told Linda not to collect rent anymore from the tenants! This led to non-payment and problems with the tenants, which will cost the estate more money to work out. Instead of listing the house on the market during the summer, this lawyer’s bad advice means that Linda now must winterize the house. With proper legal advice, the house could have been sold and done with before the cold. In summary, bad legal advice causes more stress and aggravation for the client.

How can you avoid all this? Shop around: Compare lawyers, call their office, and visit their websites. Make sure you’re working with an experienced probate lawyer from the beginning.

Request your free consultation

Sign-up for your free consultation using the form above, and I’ll be happy to email you a free chapter from Anthony’s best-selling bookHow Probate Works.”

E200 Why You Can Feel Safe Hiring an Executor

E200 Why You Can Feel Safe Hiring an Executor

Instead of appointing a family member to administer an estate, you can hire a professional executor. We often get asked if this is a safe and better route. In a recent case, Sean contacted us to discuss this option. In his particular situation, he is from a blended family. His mother died and she is survived by three adult kids and a stepfather who was separated from his mother for a long time before her death. In his case, he is facing some possible trust issues. For example, the family could tentatively agree to equal shares, but the stepfather could claim full spousal status and kids could try to disqualify the stepdad (there is certainly an argument that he is not a spouse).

If the stepfather acts as the executor, the children may not be completely trusting. Similarly, if the children are the executors, the stepfather may have trust issues. With this complex family dynamic, an independent professional executor makes tons of sense. However, some of the heirs in Sean’s case were a bit concerned about handing over the reins and control of the entire estate to a stranger. Being apprehensive is completely understandable, but here’s why it still makes the most sense.

What is an Estate Accounting?

What is an Estate Accounting?

A professional executor will file a full accounting to close the estate. An accounting is an official record of all books. Everyone gets to see line by line every single dollar and cent that came in and went out of the estate. We are talking full transparency and disclosure. Every heir will get to see everything that happened without any questions. It’s all there in black and white. Professional executors do this not only to put everyone’s mind at ease, but it is also for their protection. Professional executors can only be released from liability from what they disclosed, which is why we disclose everything.

To put it bluntly, no matter how hard they try and how meticulously organized they are, amateur executors such as family members, friends, and neighbors keep terrible estate records. For example, in order for the estate to draft and file an estate accounting, our office has to work with the executor to gather all documents and records. Most of the time, many things are missing and there is a bunch of back and forth to find the missing documents. It costs the estate money to gather these docs and find the items that were never obtained or missing.

Usually, non-professional executor accountings are mediocre at best. On the contrary, professional executors will provide the estate with a clean and solid accounting. It’s not that we are more organized, it’s that professional executors are keenly aware of the risks of liability. We know that if we mess up, the courts will come down on us. We also know the end game, so we know how to start gathering and keep track of finances immediately upon starting the case. We are working the whole time towards producing a line-by-line accounting of all of the funds.

What Does an Executor Bond Do?

What Does an Executor Bond Do?

An executor bond is an insurance against the executor for the benefit of the heirs. So, if the executor makes a mistake, loses something, or is an outright thief resulting in the heirs not receiving what they should have, then the bonding company will pay the claim. With a bond in place, the worse that will happen is that you, as an heir, get to file a claim against the bonding insurance company to get the money. It will then be the job of the insurance company to recover the funds from the executor, and not the heirs.

To get a bond you need exceptional credit, especially with large estates. Generally, they want 750+ credit scores. It is tough for some amateur executors to get a bond for this reason. As a professional executor, we have never had a problem getting a bond and have never had a claim against a bond. If not required, very often, we will get a bond anyway to put the heirs at ease. In some cases, the courts simply require them of the executor, regardless of experience.

When you work with a professional executor and request for them to be bonded, make sure you are ok with the payment of the premium. This is the amount that will be paid annually to the bonding company by the estate. The premium fluctuates depending on the size of the estate and the bond amount. We can certainly get a quote beforehand and you can decide if it’s worth the annual payment.

Are Co-Executors a Good Idea?

Are Co-Executors a Good Idea?

“We have too many cooks in the kitchen.”

In Sean’s case, one of the questions the family asked was if we can have one family member and one professional working as co-executors. They wanted to know if co-executors are a good idea. The short answer is no. It boils down to too many “cooks in the kitchen.” When you have too many people involved with what is really a one-person job, then it becomes more complicated.

You will need each executors’ original signatures on all documents and authorization for all decisions. So, all the benefits of hiring a pro as a centralized decision-maker with experience to move the estate along properly and quickly is being thrown out the window. There are situations where executors are required to do things in person, such as opening the estate bank account. Both executors would need to go the bank together, and this may be challenging to coordinate, especially if one executor lives out of town or out of the country.

It also complicates the financials. You will have two people keeping financial records differently, that you have to merge together at the end. Collecting and combining two executor’s documents will take substantially more time and the estate will bear the cost.

While we do not advocate this route, if it’s the only way the family will be on board with a professional, then we can explore it. For the right family, we are willing to do it. We recommend that you speak with the professional and research what goes into administrating an estate before deciding on the co-executorship route.

Request your free consultation

Sign-up for your free consultation using the form above, and I’ll be happy to email you a free chapter from Anthony’s best-selling bookHow Probate Works.”