Smart Business Magazine, December 2018

58 Smart Business Cleveland December 2018 INSIGHTS BANKING FINANCE To be or not to be Youve been named executor of your familys estate Now what Losing a loved one is difficult Aside from the overwhelming grief that comes with loss many families are often faced with executing the deceaseds final wishes To make fulfilling their wishes easier sometimes people before their death will name an estate executor While its an honor for someone to entrust you with carrying out their final wishes if youre a business owner who has been named executor of an estate you may want to first consider whether youre up to the task Being an executor is a lot of work says Northwest Trust Officer Lisa Arnoczky You should understand what it entails before you agree to take on the responsibility because the process of settling an estate can take up to a year Business owners need to prepare to be in it for the duration before getting involved Smart Business spoke with Arnoczky about what you should expect after youve been named the executor of someones estate What does being named an executor of an estate mean Being named executor of an estate means you help carry out the deceaseds wishes laid out in their last will and testament Family members are usually tasked with this request because theyre closest to the deceased If youre familiar with the decedents finances handling their affairs after their death should be a fairly seamless event However if youre not familiar with them you could be faced with duties you may not know how to carry out like untangling their investments locating family members who may be entitled to an inheritance finalizing their income taxes navigating the legal system and paying off their final debts You should give these duties some careful consideration especially as a business owner Before taking on the role ask yourself Do you have the manpower available to step in while you handle your loved ones final affairs Will your business suffer if you take on the responsibility of being executor The answers should give you a sense of whether youre really able to take on the task Are executors personally responsible for outstanding debts of an estate If you run your own business the possibility of taking on more debt can be overwhelming Under normal circumstances however executors arent personally responsible for the decedents debts Thats not to say there arent some exceptions In cases where estate assets wont cover all of the deceaseds financial obligations some debts must take priority Each state specifies which creditors have priority If you dont follow these rules you may end up personally liable for that debt You may also run the risk of being sued if one of the decedents beneficiaries tries to contest the will If Im named executor do I have to serve or can I decline If youre named as executor and dont wish to serve you can decline Usually wills appoint an alternate executor if the primary executor is unable or unwilling to serve If all the named executors wish to decline the responsibility they can petition the court to name a bank as the executor Im busy running my business but still wish to serve Can I seek outside help to settle an estate Absolutely In fact its highly recommended Your loved one doesnt want you to jeopardize your livelihood or monopolize your time when you have a business to run To keep your business top of mind while still serving in an executor capacity you can enlist the help of professionals like the trust department at your bank an attorney and an accountant to help navigate the financial and legal tasks The fees for these services are generally paid from the estate Serving as executor of an estate can be a demanding and complicated job Not everyone is suited for the task You know your business better than anyone else and will ultimately know whether or not taking on the responsibility of being an executor is right for you Only Deposit Products Offered by Northwest Bank are Member FDIC Nothing in this article should be construed as legal or tax advice You should consult an attorney or tax professional with any legal or tax questions LISA ARNOCZKY Trust officer Northwest Bank 440 244 7294 lisa arnoczky@ northwest com Insights Banking Finance is brought to you by Northwest Bank WEBSITE Looking for help with estate matters Find helpful information at northwest bank personal invest trust services