Selecting the right executor is a critical decision when preparing your estate plan. This person will manage your assets and follow your final wishes after you pass away. Financial literacy is a key trait to look for in an executor.
Executors must act in the best interest of the estate and its beneficiaries. Financial mistakes can lead to legal issues.
Why financial literacy matters
Your executor must be at least 18, mentally competent and free of felony convictions. Their duties often include:
- Listing and valuing all assets
- Paying debts and taxes
- Distributing assets to beneficiaries
- Closing accounts and canceling subscriptions
- Filing final tax returns
- Managing the estate through probate
In Virginia, executors need to file an inventory of the estate within four months of appointment. They must also submit annual accountings to the Commissioner of Accounts.
This makes financial skills for an executor incredibly essential. You need someone who can understand financial documents, make smart investment decisions and manage estate funds efficiently. It would help if they could also handle tax issues and report financial information accurately to the court.
Legal guidance for important decisions
While financial literacy is valuable, it is not the only factor to consider. An executor should also be trustworthy, impartial and willing to serve. hey must be able to handle the legal and administrative responsibilities of the role.
If you are unsure about who to choose or need guidance on the process, it is best to consult an attorney who specializes in estate planning in Virginia.