Understanding executors in your will: Can they get paid?
When you create your will, you're establishing a plan for the future of your estate after you're no longer present. A crucial decision in this process is selecting individuals known as "executors" who will be responsible for ensuring that your wishes are faithfully executed.
Executors bear a significant responsibility – they oversee the distribution of possessions, ensure gifts reach your loved ones as specified, settle outstanding bills, and ultimately transfer your assets to the designated individuals. However, can these executors be compensated for their dedicated efforts?
Imagine your best friend, Sarah, a school teacher, chosen as your executor. In a scenario where your house requires repairs after your passing, should Sarah be entitled to payment for managing these repairs? The answer isn't straightforward. If Sarah's profession isn't closely related to managing houses or finances, she might not be allowed to seek payment. This is because the general rule dictates that executors should not profit from estate administration unless they possess specialised expertise in the field.
However, an intriguing possibility arises – what if your will explicitly permits payment to executors? Enter the concept of a 'charging clause' in your will, a special provision that states certain executors should be compensated for their work, even if their usual expertise doesn't involve financial matters. This rule can be especially helpful, attracting people with special skills and expertise to become executors. So, when can an executor get paid? Here are the key points to consider:
Typically, regular executors don't receive payment for their work, except for reimbursement of expenses incurred during estate administration. The law restricts executors from making additional income from their role.
In some cases, if an executor's regular job involves financial management or property matters, they may be allowed to request payment. However, if their profession is unrelated, compensation might not be permissible.
Your will can include specific language indicating that certain executors should be paid, even if they lack financial expertise. This can incentivise a broader pool of individuals to take on the role of executors.
In situations with multiple executors, unanimous agreement may be necessary for payment. For instance, if one executor is eligible for payment, the others may need to consent.
Disputes regarding payment may require a judge to determine fairness.
Executors seeking compensation must document their actions and time spent to ensure reasonable payment requests.
To address potential issues, your will should include clear terms about paying executors if compensation is desired.
Now, envision Sarah faced with the task of overseeing repairs to your house after your passing. Where can she find all the information related to the property? This is where Meavitae becomes invaluable. Meavitae is a digital vault solution designed to store all your important information, providing a centralised hub accessible to executors like Sarah. This ensures that necessary details are readily available, contributing to the precise management of tasks such as property repairs.
Furthermore, Meavitae extends support to executors by facilitating connections with legal experts. In situations requiring specialised knowledge, executors can easily seek assistance from lawyers through the Meavitae platform, ensuring adept navigation of legal complexities.
Meavitae serves as a supportive partner for executors, offering the necessary tools and resources to carry out their responsibilities with confidence. If you're contemplating creating a will and selecting your executors, it's advisable to consult with an expert. This ensures that your wishes are transparent, and your chosen executors are treated fairly.
Explore the benefits of Meavitae at meavitae.com, empowering your chosen executors with the tools they need for efficient estate management.
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