Who should I name as my executor and trustee?
The first consideration in choosing an executor and trustee is determining whether the position should be filled by a family member (or other trusted friend) or by a professional fiduciary. Clients often prefer family members as the primary choice for these positions, someone with "skin in the game."
In planning with married couples, we usually suggest that one spouse serve as executor and trustee for the other, but that is not true 100% of the time. If another family member possesses the characteristics needed in a fiduciary, that may be the preferable choice. What are the characteristics of a good fiduciary? Trustworthiness, reliability, the perseverance to see a job through to completion, a diplomatic yet businesslike personality, all come to mind.
But as someone once observed, 90% of genius is just showing up. So even if your son the emergency room surgeon in a city 2000 miles away or your daughter the senior foreign service officer posted to Japan would be perfect in every other way, it is unlikely either one of them could take on the task of being an executor or trustee.
When a client concludes that there is no family member or close friend who has the skill set and the availability needed to serve as executor or trustee, a client's only practical option is a Professional Executor or a Professional Trustee, i.e., an individual, law firm, bank, or trust company that regularly serves in these roles. Professional fiduciaries are generally knowledgeable and experienced in administering estates and trusts, and especially mindful of the requirements for investing prudently. However, naming a professional fiduciary may be more expensive in some cases than naming a family member who retains professional assistance. Professional fiduciaries usually charge commissions as executors and trustees based on their published fee schedules. Commissions are generally based on the size of the estate or trust.
If the estate or trust is complicated to administer, a professional fiduciary, serving alone or with a family representative, may be the best choice. In other cases an appropriate solution is to name an individual as the initial executor and trustee, with a professional fiduciary as the successor. All the available alternatives, with their advantages and disadvantages, are considered in greater detail in the estate planning process.