Are you the executor of an estate? You undoubtedly have a lot of responsibilities right now — often in legal and financial areas with which you may have little experience. One person that may be able to help take the extra pressure from you is a financial advisor. Why should you hire one for the estate you are managing? Here are five of the most valuable reasons.
1. They Can Locate Assets.
Financial professionals know what to look for when it comes to asset management. So if your loved one's estate is complex, an advisor can help determine if you have located all the assets and debts involved. They may do research, for instance, and determine that a certain institution or a prior employer had a relevant insurance policy or retirement benefit you're not aware of.
2. They Can Advise on Investments.
If you're not an experienced investor of the type of assets in this estate, could you use the advice of a professional? As a fiduciary, you have a responsibility to the estate and its beneficiaries to act in their best interests. So, your job is to ensure the assets are well-managed and well-invested to protect and grow them while in your custody. Professional investment advice can help do this.
3. They Can Work With Heirs.
Depending on the situation, the estate's financial advisor may be able to answer questions and provide starter guidance for heirs of the estate. Many heirs don't have their own financial planners, and they may not even be aware of the full extent of the assets they will receive. The estate can help prepare these for success by working together during this transition.
4. They Can Help With Paperwork.
Do you face a lot of paperwork and documents as you sort through the estate? A financial professional can help determine what is important, what might be worth researching (such as old account statements), and what you can destroy.
5. They Can Assist With Transitioning.
The executor's role isn't to manage assets forever but instead to prepare them for transfer to the heirs. Your financial advisor can help with this process. They will advise regarding tax implications of opening and closing accounts, legal requirements to transfer assets, and how to carry out specific will provisions.
Could you use help in any of these areas? If so, start by meeting with an experienced financial advisor in your state today. Both you and the estate's beneficiaries will benefit from their professional assistance during this challenging time.Share