People who are asked to be the executor of someone's affairs after their death may be interested in learning what has been done in terms of estate planning.

There are a number of important considerations that deserve managing in the administration of an estate after a death. Organization and planning are essential along with being able to handle the unexpected.

Many times, the executor of an estate is not aware of all that needs to be done and may lack experience in probate law. As a result, some who are called upon to act as executors are themselves needing help to fulfill the requirements of the role. This is especially true when things go wrong.

The executor works with the probate court which is responsible for determining the assets, paying any bills owed by the estate then making sure the named heirs receive what the deceased intended them to have.

In addition to everything else, an executor must have knowledge of tax laws, investments and dispute resolution. The executor needs to be able to pick stocks and bonds. They must also be wise in the choice of advisors to assist them. The unskilled can manage well enough as long as there are competent people guiding them through the process.

Being an executor of an estate is typically not a money-making venture. Most states limit what an executor can be paid in terms for compensation. Many receive very little pay in relation to all the work they end up doing.

At the end of the day, before naming an executor for your estate, make sure you have a good estate plan and that the person you choose to execute the plan is a good fit.

Source: Wall Street Journal "Estate Executors: An Honor...and a Pain," Arden Dale, Sept. 19, 2011