A will executor also being a beneficiary is not an uncommon situation. Most states do not have any laws prohibiting this from happening. In fact, it is quite common that a direct relative is a beneficiary and the executor. Still, there are things to be careful when choosing a potential beneficiary as a will executor. There are certain advantages and disadvantages when it comes to this situation.
A will executor that is also a beneficiary will likely deny payment for being the executor. This is due to the payment normally coming out of the estate, to which he or she is a beneficiary of anyways. Also, they may deny payment because they are a relative or close friend. The probate process becomes easier when you can jump this step.
However, a will executor may also try to act in favor of themselves while handling the state of the affairs. It is best to pick someone who is trustworthy and not self-interested when choosing an executor. Furthermore, some small estates may risk having insolvency, which means there may be more debts than assets in the estate. This could put unwanted pressure on the executor.
Your executor can be listed as a beneficiary in your will. However, you should carefully consider all options before you make this decision. A beneficiary executor can been a boon but also a hindrance.
Rocket Lawyer has many legal tools to help you through the estate planning process. Furthermore, our legal documents make it easy for you to create a living will, Power of Attorney, and many more types of forms.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.
