When a person passes away, a last will details their wishes. It is important to understand the legal aspects of this document, particularly when it comes to naming an executor of the will, and any beneficiaries. Generally, the executor of a will settles the estate of the deceased and ensures the fulfillment of the wishes outlined in the will.
This raises the question: can an executor of the will also be a beneficiary? Yes, an executor of a will can be a beneficiary at the same time. This is actually a common situation.
This article will explore the legalities involved in this scenario. An understanding of the role of the executor, the rights of the beneficiaries, and what an executor must do in order to also be a beneficiary can be gained from this article.
What is an Executor?
An executor is a person who is named in a will to carry out the wishes of the deceased. An executor’s primary role is to settle the estate of the deceased and distribute it according to the terms of the will. A will must include a designation of the person who will be handling the affairs of the estate. The person chosen as the executor has the legal right to act on behalf of the estate.
Responsibilities of an Executor
This means he or she has a legal obligation to follow the instructions in the will. The executor must ensure the completeness of the following: gathering any assets that belong to the deceased, paying any debts owed by the deceased, and distributing any remaining money to the beneficiaries named in the will. When it comes to the distribution of assets, the executor has a legal right to claim any assets specifically named to them in the will. This includes assets that would otherwise be distributed among the beneficiaries.
What are the Rights of Beneficiaries?
Beneficiaries have the right to expect the terms of the will to be honored by the executor. They are entitled to expect that the executor will carry out their duties in a diligent manner. Beneficiaries have the right to expect that the terms of the will shall be followed. This means that if the will states that a specific person is to receive a specific asset, the beneficiary has the right to expect that he or she will receive it.
What if the Executor is Unable to Perform?
In some cases, the executor may be unable to carry out the duties of their position. In this case, the beneficiaries named in the will have the right to petition the court to name a replacement. It is important to note that beneficiaries do not have the right to dictate how the executor carries out their duties. The beneficiary should speak directly to the executor to try and resolve any dissatisfaction with the way the will is being carried out. If this fails, the beneficiary may choose to petition the court.
Cons of an Executor being a Beneficiary
An executor can be a beneficiary. This may not be ideal. While the executor has the legal right to claim any assets that are specifically named in the will, this puts other beneficiaries at a disadvantage. The rest of the beneficiaries may have been expecting to receive a larger share of the estate. Nonetheless, it is possible for an executor to also be a beneficiary.
Responsibilities of an Executor
However, the executor must do the following: Resign as executor; Transfer their share of the estate to another beneficiary; Petition the court for permission to receive the asset. To resign as executor, the executor must put the following in writing: The name of another person who is willing to act as executor; A declaration that they no longer wish to be the executor of the will; A statement that they are aware that they are no longer able to act as executor; A declaration that they are aware of the consequences of their actions.
Requirements for an Executor to Also be a Beneficiary?
The executor must resign and transfer the assets named in the will to another beneficiary. You can accomplish this in two ways. First, by transferring the specific assets to which the executor is entitled by completing a transfer of assets form that includes the name of the asset, the person receiving it, and the reason for the transfer. Alternatively, if the executor wants to transfer an asset not named in the will, they must petition the court for permission.
Pros and Cons of an Executor Being a Beneficiary
The contents of the will naturally interest the executor. This means that the executor may be more motivated to see the will is carried out successfully. This could benefit the other beneficiaries. An executor-beneficiary may choose to claim assets rather than transferring them. The other beneficiaries may view this as unfair.
Additionally, the executor may also feel a sense of entitlement. This could cause them to be more demanding when it comes to receiving their assets. It could also cause the other beneficiaries to feel less inclined to give them what they owe them. This could result in tension among the beneficiaries, which may make carrying out the wishes of the deceased more difficult.
Final Thoughts
When someone passes away, a Last Will and Testament details their wishes. It is important to understand the legal aspects of this document, particularly when it comes to naming an executor of the will, and any beneficiaries. The task of settling the estate of the deceased and ensuring the fulfillment of the wishes outlined in the will falls to the executor.
This raises the question: can an executor of the will also be a beneficiary? When naming an executor, you should choose someone who is motivated and capable. This way, the executor is more likely to give the other beneficiaries what they owe them.
