{"id":852,"date":"2017-11-06T19:59:33","date_gmt":"2017-11-06T19:59:33","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/?page_id=852"},"modified":"2022-08-24T21:22:59","modified_gmt":"2022-08-24T21:22:59","slug":"can-an-executor-of-a-will-be-a-beneficiary","status":"publish","type":"post","link":"https:\/\/www.jacksonwhitelaw.com\/arizona-estate-planning\/blog\/can-an-executor-of-a-will-be-a-beneficiary\/","title":{"rendered":"Can an Executor of a Will be a Beneficiary?"},"content":{"rendered":"
One of the first things a will does is to nominate an executor<\/a>. This individual, also known as the personal representative, will be charged with handling and settling your estate after you have passed away. In many cases the executor is a close family member, such as a spouse or adult child, but it\u2019s not uncommon to see a friend or trusted advisor take the responsibility. Due to the prevalence of having a family member do the job, however, roles frequently overlap so that a beneficiary listed in the will also serves as the executor.<\/p>\n While this may introduce a conflict of interest, most states permit it. In fact, if a situation necessitates that a probate judge appoint a personal representative\u2014either because the will failed to name one, or because someone disputed the person named in the will\u2014the probate court will frequently select the spouse or an adult child for the personal representative position, even if they are a beneficiary.<\/p>\n While a professional, third-party executor typically charges for the work they do on your estate\u2019s behalf, a beneficiary may be willing to do the job for free. Often, a family member serving as the executor will waive payment because they stand to receive a portion of your estate through an inheritance. This can speed up the probate process and potentially save you money, since a portion of your final estate is usually set aside to cover the probate administration costs.<\/p>\n If you trust the beneficiary serving as your estate\u2019s executor, you can also waive the requirement for them to post bond<\/a>. Most states require this unless it\u2019s expressly waived in your will, so the directive will need to be included in your final will. Like the first example, this can also save time and money.<\/p>\n The primary disadvantage of nominating a beneficiary to serve as your estate\u2019s executor is the potential conflict of interest. Before the executor can distribute funds to the beneficiaries, all final bills, debts, and taxes need to be paid. If the executor stands to inherit a portion of your estate, and especially if the size of that inheritance hinges on how much is left over when the liabilities are covered, they may be inclined to act selfishly, rejecting valid claims and complicating the probate proceedings. They may also be inclined to be dishonest and manipulate your estate in a way that increases their inheritance.<\/p>\n In the case your estate is small or possibly insolvent (meaning there are more liabilities than assets), the executor may need to alter the final disbursement to beneficiaries, going against the wishes laid out in your will. Not only does this place the executor in an uncomfortable situation, it may lead to disputes amongst the other beneficiaries.<\/p>\n If you\u2019d like to name a beneficiary as your executor, consider also nominating a co-executor<\/a> in your will. This individual can provide a second opinion if any disputes arise, and they can take over the position if the court dismisses your primary executor (which usually happens if one of the beneficiaries contests their competency or honesty). It\u2019s best to nominate a third-party, non-beneficiary as co-executor, so that their opinion and guidance\u2014if needed\u2014is neutral and unbiased. Professionals are usually willing to fill such a role for a fee, and the great part is you\u2019d only have to pay them if the situation warrants their intervention.<\/p>\nAdvantages<\/h2>\n
Disadvantages<\/h2>\n
Safeguards<\/h2>\n