An executor is appointed to oversee the probate process, pay debts, arrange a funeral, and distribute assets to beneficiaries. The relationship between an executor and beneficiary is that the executor must settle the estate before distributing assets. The executor may have to make judgment calls on inheritance if the estate is in poor financial shape. It is common for executors to also be beneficiaries, but some legal experts recommend appointing an executor from outside the family to avoid disputes. In contentious cases, the relationship between an executor and beneficiary can become strained.
An executor is appointed, by court or in a will, to walk him through the probate process, pay off all debts, arrange a funeral, and ultimately release funds or estates to the beneficiaries of the will. The beneficiary is named in the will to receive monetary or real estate assets. The connection between an executor and a payee is that executors must do their job before handing out anything. In many cases, the link can be even closer because an executor of the will can also benefit from it. This is common and sometimes problematic if the will is contested, if there are disputes over inheritance, or if the executor does not execute the will quickly.
A will legally documents a person’s wishes upon their death. It is not necessarily a perfect account of what the person has to give. Before anything from the will can be distributed, the affairs of the deceased must be fully understood. All taxes and final debts must be paid, before the hereditary portion of the property is fully understood. In this sense the relationship between the executor and a beneficiary is that the executor must first settle the estate of the deceased. This can change exactly what can be inherited and how much.
For example, if the deceased’s finances are in poor shape, the actual amounts or available estate may not be realistically represented by a will. If most of a property has to be sold to pay taxes or debts, some beneficiaries may inherit nothing. An executor who does his job faithfully is not responsible for the economic situation of the deceased person, but he may have to make judgment calls on things inherited from certain beneficiaries or sometimes he may have to exclude beneficiaries, if the property named in the will to inherit had to be sold or distributed elsewhere to pay off debts. In some way an executor and a beneficiary may be related because the executor’s actions may result in a list of ultimate beneficiaries which may differ from the will.
There is considerable debate as to whether an executor and a beneficiary should be the same person. It is a very common practice with small estates and often spouses nominate each other as executors or parents may nominate a child as executor. These executors are also beneficiaries.
Some legal experts advocate appointing an executor from outside the family. To do otherwise can interfere with family harmony if one person inherits more or if there are disputes over the will. In contentious cases, the relationship between an executor and a beneficiary can become strained, with cases of executors intentionally dragging their feet or manipulating inheritances one way or another so that some beneficiaries inherit less.
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