Takeaways
- An executor manages your estate settlement, which includes locating assets, paying debts and taxes, and distributing property to beneficiaries.
- A family member can be cost-effective and personally invested, but the role is time-consuming and can strain relationships, especially when emotions run high.
- Having a lawyer as your executor can add expertise and neutrality, but you should understand the full fee structure and watch for conflicts if the lawyer also drafted your will.
- A corporate executor offers continuity and infrastructure for complex estates, special-needs planning, or blended-family situations. However, they often come with minimum estate requirements and ongoing fees.
- Ask detailed questions before you decide about fees, who does the day-to-day work, how disputes are handled, and what happens if the executor can’t continue.
When you sit down to write your will, the most consequential decision you’ll make may not be who gets the house or heirlooms, but who will be in charge of carrying out your wishes after you’re gone. That person, or institution, is your executor. And though many people name a trusted family member or close friend, others turn to a lawyer or a professional trust company. Both choices come with trade-offs worth understanding before you sign anything.
What Does an Executor Do?
An executor’s job is more demanding than most people realize. They locate and inventory all the deceased person’s money and property, notify creditors and government agencies, file final tax returns, pay outstanding debts, manage any ongoing property or investments during the settlement period, and ultimately distribute what remains to the beneficiaries named in the will. Depending on the size and complexity of the estate, this process can take anywhere from several months to a few years.
Naming a Lawyer as Executor
The Potential Benefits
- Legal and procedural expertise. Probate is a court-supervised process with strict deadlines, required filings, and technical rules that vary by state. Qualified estate planning attorneys know the system, speak the language, and are unlikely to miss a filing deadline or mishandle a required notice. For estates that involve business interests, real estate in multiple states, or contested assets, that expertise can save significant time and money.
- Neutrality in family disputes. When beneficiaries don’t get along, a neutral professional executor can act as a buffer, making decisions based on the will and the law rather than family dynamics. This can prevent disputes from escalating into costly litigation.
- Continuity. Unlike a sibling or a friend who may move away, lose interest in the tasks involved, or simply feel overwhelmed and want to quit, a lawyer is unlikely to forfeit their executor duties.
- Accountability. Attorneys are licensed professionals who must follow bar association rules. If they mishandle estate funds, you can file a formal complaint and they may face disciplinary measures. Those protections usually aren’t available when a family member serves as executor.
The Potential Drawbacks
- Cost. For executor services, lawyers typically charge either an hourly rate or a percentage of the gross estate value, often 1 percent to 4 percent. On a $1 million estate, that’s $10,000 to $40,000, on top of any separate attorney’s fees for legal work. A family member serving as executor is often entitled to a fee too, but it is generally lower and some may not charge the full amount out of love for the deceased.
- Less personal investment. A lawyer executor is doing a job. They may not have the same motivation to hunt down a missing account, negotiate a better sale price on the family home, or navigate a tricky situation with the sensitivity a loved one would bring.
- Potential for delays. Large firms sometimes handle estates as lower-priority matters. Without the personal connection that a family executor might feel, some professional executors may be slower to respond to beneficiaries’ questions.
The Conflict-of-Interest Problem
Here is where people need to be especially careful. A lawyer who drafts your will and is also named as executor of your estate faces a built-in conflict of interest. As executor, they have a duty to act in the best interest of the estate. But they also have a financial interest in generating legal fees, since executors typically hire attorneys, often themselves or their firm, to handle the legal work of the estate.
This “double-dipping” arrangement of collecting executor fees and legal fees from the same estate is legal in most states but is criticized by consumer advocates who think client interests should take priority over legal fees. Some states require explicit disclosure before a lawyer can fill dual roles. Before naming your will-drafter as executor, ask directly: will you or your firm also be billing the estate for legal services? If yes, get a clear, written explanation of the total anticipated fees.
When a Corporate Executor Makes Sense
A corporate executor, typically a bank trust department or an independent trust company, is worth considering in the following situations:
- Large or complex estates. If your estate includes a business, investment portfolio, real estate holdings in multiple states, or international assets, a corporate executor likely has the infrastructure, specialized staff, and investment experience to manage it properly over what may be a multiyear process.
- No suitable personal candidate. Not everyone has a family member or friend who is financially savvy, geographically close, emotionally prepared to handle the role, and young enough to outlive them. If the candidate pool is thin, a professional institution can be a stable executor.
- Anticipated family conflict. When you know your beneficiaries are likely to disagree, dispute decisions, or pressure an individual executor, a corporate institution provides a professional, impartial third party.
- Minor or special-needs beneficiaries. If your estate will be held in trust for minor children or a beneficiary with special needs over many years, a corporate trustee offers continuity that no individual can guarantee. A trust company won’t die or become incapacitated in year three of a 20-year trust.
- Blended families. When there are children from multiple relationships, a corporate executor removes the temptation of favoritism and reduces the risk of accusations that any one family faction is controlling the process.
The main drawbacks of corporate executors mirror those of lawyer executors:
- fees (often 1 percent to 1.5 percent of assets annually for ongoing trusts),
- one-time settlement fees, and
- a lack of personal familiarity with the family
Some trust companies also have minimum estate sizes, often $500,000 to $1 million or more, before they’ll agree to serve as an executor.
Questions to Ask Before Naming an Executor
Whether you’re considering a lawyer or a trust company as executor, get answers to these questions before committing:
Fees
- What is your total fee to serve as executor? Will it be an hourly rate, a flat fee, or a percentage of the estate?
- Will your firm also bill the estate separately for legal services? If so, what are those fees likely to be?
- Are your fees negotiable? Will they be spelled out in a written agreement?
Experience and Process
- How many estates of similar size and complexity have you administered in the past three years?
- Who specifically will be handling the day-to-day work – you personally, or junior staff?
- How will you communicate with beneficiaries, and how often?
Conflicts
- Do you have any existing financial or personal relationship with any beneficiary that I should know about?
- If disputes arise among beneficiaries, how do you handle them?
Continuity
- If you retire, become ill, or leave the firm, who takes over and how are beneficiaries notified?
- For corporate executors: what is your minimum estate size, and what happens if my estate falls below that threshold?
Bigger Picture
- Can you provide references from families whose estates you have administered?
- Are you willing to serve as co-executor alongside a family member, so there is both professional expertise and personal familiarity involved?
The Bottom Line
Choosing an executor has no universally right answer. A straightforward estate is often best served by a capable, trustworthy family member serving as executor, perhaps with a lawyer providing legal support behind the scenes. A complex, high-value, or conflict-prone estate may benefit from professional administration.
What matters most is that the choice is deliberate, informed, and documented clearly in your will. Talk openly with anyone you’re considering naming. Discuss the conflicts-of-interest question directly with any lawyer involved in drafting your estate planning documents. And revisit your choice every few years or as your circumstances change.
Your executor will be responsible for your final act of generosity to the people you leave behind, so it’s worth choosing carefully.
Additional Reading
For additional reading related to estate planning, check out the following articles:
