Testamentary executor

An executor must be appointed by will. Because of the role of the executor, it is important to appoint someone you trust completely. The executor will arrange all matters after your death. This includes arranging the funeral, but also the actual settlement of the estate such as, for example, paying legacies and settling outstanding debts.
Until 1 January 2003, an executor could also be appointed by codicil. Codicils with an executor's appointment drawn up before 2003 are valid even after that date.

The advantage of appointing an executor is that the heirs do not have to arrange everything together. If there is no executor, however, the heirs can choose to give power of attorney to one person to arrange everything on their behalf. Such a person is not an executor, but a trustee.
The executor does need to consult with the heirs when he wants to sell goods. This selling, depending on the provisions in the will, he can do independently only when it is necessary to pay debts. Otherwise, he needs the cooperation of the heirs. In addition, the executor must provide the heirs with any information they require.
The heirs themselves cannot perform acts of management and disposition unless the executor cooperates or if they have authorisation from the court.

Another advantage of appointing an executor is that, if there is an executor, the benefit acceptance of the estate does not automatically oblige the heirs to settle the estate in a rather circumspect manner. Without an executor, there is soon an obligation to call creditors through the newspaper, prepare distribution lists and submit them to the subdistrict court for inspection.

It is also possible to appoint two or more executors. You can then also determine whether they are each authorised independently or exclusively together.
For the situation where the appointed executor does not accept or cannot complete his task, it is desirable to appoint a successor executor.

As indicated, an executor will start managing things after your death. In the will, you can describe what powers the executor has. For example, you can appoint someone as funeral executor: this person will then only arrange the funeral.
It is also possible to appoint the executor as administration executor: this executor is then authorised to manage the goods of the estate and pay its debts.
It is also possible to appoint an executor-settlement administrator: this is a combination of a management executor and administrator. Additional powers can be granted to this person, such as determining how the estate will be distributed.

The legal salary of an executor is 1% of the balance of the estate. Depending on the composition and size of the estate, this may be disproportionate to the amount of work. By will, you can deviate from the legal salary. For example, you can provide that the executor receives no salary, that they are granted a salary on an hourly basis or simply a fixed amount.

In short: the appointment of an executor is desirable for several reasons, while the arrangement can be tailored entirely to your needs.

For more information about the executor, please contact us. We will be happy to help.