For those of you who have attended one of our workshops, you probably realize now that being the executor on someone else’s will is not going to be easy, and that there are many moving parts. If you’re a testator, you also realize that the better prepared you are today, the easier it will be for your executor to manage your affairs tomorrow.
While it obviously will be a lot easier if you’ve done your homework beforehand, there is still some significant liability and personal risks for the executor. This is where Executor Insurance can make a significant difference for your Executor, and your Beneficiaries.
So what is Executor Insurance? How does it work? How much does it cost? Who pays for it? When do you get it? …. so many questions, all relevant. Without going into huge details, we will address most of these
Let’s answer the first one. What is it? Executor Insurance covers your executor for any mistakes or legal fees that he/she would incur handling your estate. Some of these mistakes could have been avoided, some are out of your control, or stem from a poorly designed will, or a lack of communication between the different parties involved (including the deceased!).
How does it work? Well that depends whether you are purchasing the insurance before or after your death. The coverage varies in each scenario.
As the testator, you can plan ahead, and have access to a few more features, or you can simply ask your lawyer to include a section in your will stating that you authorize your executor to purchase the insurance after your death.