Received a phone call last night from my MIL, requesting that I take on the responsibility of being the Executor of her Will. Outline : Her husband passed away 8 yrs ago. He was in the Fire Brigade and I believe she receives his Super pension. She has 1 investment property ( Central Coast NSW) They had 2 children - my wife (deceased 2015) and a son who resides overseas with his family. She informed me that now that she is getting on and becoming frail she would like to move into an Aged Care facility. The Aged Care facility is asking for a considerable down payment for her accommodation, on top of which she will be required to pay a monthly fee. The monthly fee is reduced due to the down payment. The interest off the down payment is used to offset the fees I assume. No interest is earned for her from the down payment. Her son, due to him being overseas, she sees as being an impractical Executor from a distance perspective. She wishes to formalise this ASAP, with myself becoming POA and Endearing Power of Guardianship. Yes, I will be seeking legal advice, but was hoping to get a heads up before I meet with her lawyer. Your thoughts? Thanks TAJ.
very risky to be an executor. I would personally refuse to do it other than for close relatives. being an attorney is less risk and being a guardian is less risk still. It would be impractical for someone overseas to act in these roles and tax implications potentially too with being an executor.
Thanks for the prompt reply Terry. I have acted as an Executor before, but that was for my Dad's Will. Why do you see this as risky? Are you suggesting that her lawyer should be appointed Executor? What about the POA and Endearing Guardianship?
Yes, I would like to know about the risk too. Although when there's money involved, families start getting greedy ...
I would be surprised if I feature in the actual Will. However, my children might. I will be contacting my BIL as soon as I can track him down. My MIL did mention that he was fine with me looking after her affairs. Lets see.....
Executors are personally liable in many instances - they are basically trustees. For example the estate may be challenged and you may mount a bad defence and the court may order costs to come out of your pocket and not the estate.
Lawyers generally wouldn't want to be executors either. but there are professional trustee companies that can act - for a fee.
