Can an Executor Also Be a Beneficiary?
It is understandable if you only let a small group of individuals into your inner circle of trust. This is why it is rather common for grantors of a Last Will and Testament to want a single trusted individual to serve as both the executor and beneficiary of their estate. Well, for this, please continue reading to learn whether an executor of a will can also be named a beneficiary and how an experienced Butler County will preparation attorney at Heritage Elder Law & Estate Planning, LLC can help you understand the potential implications of this.
Can an executor of a will also be a beneficiary?
The short answer is, yes, the Commonwealth of Pennsylvania allows for the executor of a Last Will and Testament to be also named as one of its beneficiaries. For example, you may trust your surviving spouse to be able to handle your estate’s assets and distribute them to your other beneficiaries (i.e., your shared children) fairly and following your wishes. At the same time, your spouse may be entitled to inherit at least one-third of your estate’s assets per state laws, having them distributed to themselves, as well.
As always, this is so long as this certain beneficiary meets the necessary criteria to be your executor, too. That is, Pennsylvania estate law holds that an executor must be at least 18 years of age, in a mentally sound state, and have citizenship or permanent residency status in the United States, among other extenuating circumstances.
Are there conflicts of interest if an executor is also a beneficiary?
While it is arguably popular for an executor to double as a beneficiary, this does not come without its fair share of potential issues. You must be mindful of such before you move forward with your designations. For one, this may create a conflict of interest. In other words, since your executor has a personal interest in your estate’s assets, they may intentionally or unintentionally take actions to benefit themselves rather than to benefit you and your other named beneficiaries.
For example, they may distribute to themselves before they distribute to other beneficiaries, take certain assets intended for other beneficiaries for themselves, take more money for their executor services than what was agreed upon, and more. Ultimately, this may cause a breach of their given fiduciary duty. With such a breach, your other named beneficiaries may initiate litigation proceedings on your estate. So while you might have initially assumed it was more straightforward to name the same person as your executor and beneficiary, it might have made your estate administration all the more complicated.
If you are ready to make your executor and beneficiary assignments, please first retain the services of one of the skilled Butler County estate planning & probate attorneys. Our team at Heritage Elder Law & Estate Planning, LLC is ready and able to take on your case.
