Coach Andrea's Coaching Tip of the Week
Focusing your vision, achieving results )
March 25, 2005
Contents In This Issue
  • Guest Article:
    The Challenges of Being an Estate Executor
    by Dianne Webster
  • COACHING CALL TO ACTION
  • COMMUNITY INVOLVEMENT
  • IDEAS AND INFORMATION
  • ABOUT ANDREA NOVAKOWSKI
  • PASS IT ON
  • Andrea Novakowski
    Master Certified Coach

    Coaching for Corporations,
    Businesses and Individuals





    QUOTE OF THE WEEK

    "Action springs not from thought, but from a readiness for responsibility."

    -- G.M. Trevelyan


    Guest Article:
    The Challenges of Being an Estate Executor
    by Dianne Webster


    At some point in your life, you may be asked to serve as executor of a loved one's estate -- a spouse, a parent, a good friend. Actually, you may not even be asked, but simply find yourself named in the deceased's will. But before accepting out of love and duty-bound honor, be aware of the many duties and challenges of this job.

    And it can be a job. Serving as an executor can be time-consuming, complex, emotionally frustrating and an exhausting experience, even for a modest-size estate. It also carries legal responsibilities. As a "fiduciary," you must act with the utmost honesty, impartiality and scrupulousness on behalf of the deceased and the estate's beneficiaries. This all comes on top of the fact that you're going through the emotional loss of the loved one.

    Fortunately, you can hire professionals -- a financial planner, an attorney, an accountant -- who can provide advice and do much of the actual work. It is still your responsibility to ensure that all work is accomplished and done properly. So keep the following in mind when deciding whether to accept this role.

    The role of an executor -- called a personal representative in some states -- is to make sure that the deceased's estate is properly settled. To accomplish this task, you ideally should have the time and live near the deceased because you'll need to go through their records and work with local officials. You should be an organized person, with financial savvy and attention to detail. You should be fair minded (especially if you're one of the beneficiaries), yet strong enough to handle squabbles among heirs.

    As executor, first thoroughly read the will and any letter of instructions from the deceased, and register the will with the court. Identify the estate's heirs and all property and financial assets. Determine which assets will pass via the will, versus those that go directly to an heir (such as life insurance or a retirement account). Take note of any existing trusts or trusts created by the will.

    All property and financial assets, ranging from insurance policies to bank accounts and real estate, must be identified and valued, either by yourself or by outside professionals. This process may be relatively simple if you're the deceased's spouse and records are in good order. On the other hand, a poorly managed estate about which you have little or no knowledge can be a nightmare to inventory.

    You'll need to manage the estate's assets until debts and estate settlement costs are paid and the remainder distributed to the heirs. This is one area where liability can arise. You're not legally responsible just because the value of some assets decline under management (for example, due to changes in the stock market). But you could be held responsible if you mismanage them. In one case, the three executors of the estate of a world-famous artist were assessed millions of dollars in damages because they sold the estate's paintings at well below their market value.

    You'll need to determine valid creditor claims and be sure the estate pays off any debts. You are also responsible for filing the estate's taxes, which probably will consist of an income tax return on behalf of the deceased, plus estate tax returns for federal and/or state taxes.

    After these obligations are fulfilled, you'll distribute the estate's remaining assets to the heirs. Beware of potential conflicts that can erupt between heirs over personal possessions or other assets. If you're also a beneficiary, you might be accused of partiality. Sadly, some such battles end up in court.

    You can reduce the potential for problems by working with outside financial advisors and, if possible, by being sure the person who has named you as executor has a well-prepared estate plan.

    To compensate you for your work, you may collect a fee as executor (two to five percent of the estate's value is common), though you may waive the fee if you wish. Or you can decline to serve as executor and request that a successor be appointed.

    Dianne Webster is a CERTIFIED FINANCIAL PLANNER (TM) and President of Integrated Financial Strategies of Amesbury, MA. She offers securities through Commonwealth Financial Network, Member NASD, SIPC. For more information please visit http://www.www.ifslegacy.com.

    COACHING CALL TO ACTION


    Dianne's article provides an overview of what the role of executor entails. Having recently taken on the role of executor for a family member, this article gave me some good guidelines. If you, too, have been named executor or have friends who have, please read this article and pass it on. It's important to be informed about this responsibility.

    COMMUNITY INVOLVEMENT


    Warm Welcome to the Federal Women's Program of the EPA Retreat Attendees

    A warm welcome to our new Coaching Tip of the Week subscribers who I met at their annual retreat during my program "Self Care is More than a Manicure!". I enjoyed sharing my tools for knowing and understanding what you require to feel taken care of and on top of your game and participating in your new insights, ideas and thoughts.

    IDEAS AND INFORMATION


    I found the book "The Executor's Handbook" by Theodore E. Hughes and David Klein very helpful and thorough. It provides a step-by-step guide to settling an estate for personal representatives, administrators, and beneficiaries. If you want to know more in depth about the role of the executor, check it out.

    http://www.amazon.com/exec/obidos/ASIN/ 0816044279/coachandrea.

    ABOUT ANDREA NOVAKOWSKI


    Coach Andrea's Coaching Tip of the Week is brought to you by Andrea Novakowski, Master Certified Coach who provides Business and Personal Coaching to Corporations, Businesses, and Individuals. Andrea is a professional coach who partners with people to set goals and create momentum to produce effective results in their business and/or personal lives.

    Andrea is available for individual coaching. If you are serious about reaching your goals and living with greater fulfillment and satisfaction, consider using a coach. To schedule a COMPLIMENTARY initial consultation, send an e-mail to Andrea at
    andrea@coachandrea.com.

    PASS IT ON


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    Coach Andrea
    Focusing your vision, achieving results

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