The executor has the task of carrying out the last will and testament of the deceased. Among other things, they take over the administration of the estate, pay outstanding debts, prepare the distribution of the inheritance and can mediate in disputes between the heirs. In this way, they make a significant contribution to ensuring that the estate is settled in an orderly manner, especially in cases where there are several heirs or complex assets.
Appointment of the executor
The appointment of an executor must be made in a formally valid last will and testament (will or inheritance contract). If this is declared invalid by the court, the execution of the will is also invalid. The testator must designate the named person himself: it is not sufficient to simply state in general terms that an executor is to be appointed. The person must be clearly identifiable, for example by using the phrase ‘my wife’. Even if no name is given, it must be clear who is meant.
Duties of the executor
The duties of the executor consist primarily of executing the wishes of the deceased. The executor must carry out the instructions of the deceased, provided that these are not unlawful or immoral. This may also include personal wishes, such as those relating to the funeral service or burial/cremation. Other duties include settling outstanding bills, terminating current contracts and determining the estate’s assets. The executor also prepares the distribution of the estate and must submit a proposal for distribution to the heirs. However, this distribution of the estate is only binding if all heirs agree to the entire proposal for the distribution of the estate.
Compensation of the executor
The executor is entitled to reasonable remuneration for his or her services. This entitlement applies even if the testator has excluded remuneration in his or her last will and testament. The amount is determined by the circumstances of the individual case. Factors taken into account include the time required, the complexity of the task, and the scope and duration of the task.
When does it make sense to appoint an executor?
If the financial circumstances are straightforward or there are only a few heirs, it may not be necessary to appoint an executor. Appointing an executor makes particular sense if the financial circumstances are complex, there are a large number of heirs, or disputes among the heirs are foreseeable during the testator’s lifetime. Ultimately, this must always be assessed by the testator for the specific (family) situation.
If you have any questions about settling an estate or executing a will, our notaries will be happy to advise you.