Q.     My parents are of the generation where financial issues are personal matters.  This is fine but at dinner last week they asked me if I would be executor of their estate.  I asked them what exactly that meant and they said I would handle all of their affairs at death.  When I started questioning them about their burial wishes and estate plans they became withdrawn and accused me of wanting to know what my inheritance is going to be.  We got into a big argument and I spent the rest of the evening assuring them that it was not my intent to question them or determine my inheritance.  I finally convinced them that it would be an honor to be their executor.  I don't have any idea what I've just agreed to do.  What do I need  to know as executor and when do I need to know it?  What will I need to do?  Any information you can provide would be very helpful.

A.     That sounds like a fun evening!  Your parents aren't any different than most people, regardless of generation.  When people begin to work on their estate plans it can become very stressful, they are actually planning for their death, not a very pleasant topic.  Your parents have probably spent a great deal of time considering who would be the best person to handle their affairs at death and may have been insulted that you didn't immediately accept this responsibiltiy.
          The job of an executor or executrix (female) can be time consuming and may be difficult.  As executor, you will have the reponsibility to gather all of the decedent's assets and report to the court by preparing and submitting an inventory.  You will need to keep track of assets received and sold, expenses paid, and amounts due to heirs.  Record keeping is an important part of an executors job.  There are risks involved in being an executor because of your fiduciary obligations.  You are required to act in the best interests of the heirs and must preserve the value of the estate during the probate process.  If you have never handled an estate before, I would recommend hiring an experienced estate attorney to assist you in this process.
           By preparing a schedule of assets during their lifetime your parents will make your job much easier.  Once everything calms down you can explain that there are some basic things you need to know to be an effective executor.  If they do not want to share this information while living ask them to put the information in a sealed envelope to be opened only at death.  Obviously, you will need to maintain possession of this packet or at the very least, know where it is.  A useful packet will contain the following:

1. Information concerning funeral arrangements, nature of ceremony, desired obituary, description of burial or cremation instructions.
2. Location of will and/or trust documents.
3. Name and contact information of advisers.  This includes but is not limited to:  Attorney, Accountant, Stock-broker, Financial Planner, Insurance Agent and Banker.  It would also be helpful to know what your parents think of these advisers.  Are they trustworthy, knowledgeable, helpful and do they charge reasonable fees?  Just because someone is working with an adviser while living doesn't mean they would chose this same person to handle a larger estate.  Example:  If yoiu have a small investment account it may not matter who the investment adviser is; this may not be an appropriate adviser to handle large sums of money due to death.
4. Location of safety deposit box.  Request to be on the signature card for access.  A spare key to the safety deposit box or fire safe should be included in this packet.
5. Checking, savings, credit union and investment account numbers and locations.
6. A listing of all assets not included in #5.  Insurance policies, real estate, personal property, autos, boats, collectibles, retirement plans etc.
7. A listing of all debts owed.

Send questions to Holly Nicholson, CFP, JD, P.O. Box 99466, Raleigh, NC  27624 or go to her Web site, www.askholly.com. For private client issues call 676-2806.