Would you quit your client to be his executor?

Would you quit your client to be his executor?

Would you quit your client to be his executor?
 
“It would be a conflict of interest. It is double dipping if I was paid on the insurance or the investment side, and collecting money as a trustee or executor,” he said. “Let’s be honest, there’s too much going on these days. People are ripping off the public … and more often than not, they are people that are dealing with money.”
 
With that in mind, MacCoy recommends advisors considering making the leap over to executor or trustee, ensure that all their ducks are lined up before doing so. This includes, he says, establishing a legal agreement between you and the beneficiaries, seeking out proper legal representation and adequate coverage for your services.
 
“If you’re looking to make a couple of extra bucks, be careful what you wish for because there is an awful lot of time involved,” said MacCoy, adding that it took 2.5 years to settle the estate he took over. “If things are not done correctly, so the beneficiaries are happy, you are going to be taken to task.”

Would MacCoy take on the roles as executor again?
 
“It would depend on the circumstance,” he said.




 
 

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4 Comments
  • Cameron 2014-02-12 3:17:56 PM
    So did he DSC on the insurance side, and also collect executor fees?
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  • Myron Neufeld 2014-02-12 4:47:39 PM
    From our experience 2.5 years is about the norm. A critical issue with this is recognition as the 'personal representative' the buck stops with the executor regardless of agreements and contracts. If you are going to take on the executor role, do what the lawyers are doing when acting...insist that the estate purchase an executor liability insurance policy to protect yourself as executor in the case things don't go as planned....regardless of what you think you might know about the estate and the relationships you might have with the family. We decline about 23% of all applications for executor liability insurance because they come in 9-10 months after the executor assumes the role and after they are confronted with unhappy beneficiaries, creditors or even aggressive charities (the house is on fire!)
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  • Ken MacCoy, CHS 2014-02-12 8:06:32 PM
    Myron, thought I recognized your name. I agree 100% with your comments. If I'd been aware of the ERAssure plan prior to being appointed as Executor, I would have insisted on the coverage. To ensure no problems, the beneficiaries were involved in all aspects of the decision making and required to sign off before we proceeded. While a length process, it virtually guaranteed success. End result, all were happy. Ken
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