E185 How to Name a Bank as Your Executor

Want a professional executor, but prefer an institution such as a bank or trust company? Here’s what to expect. The application process Like all other bank interactions, you must complete lots of forms and paperwork. It’s a lot of documentation, it may feel like you’re applying to college all over again. And just like applying for college, you may feel like you’re applying for acceptance. Banks do not accept all executor nominations, and they have internal committees to decide which estates they will serve. Bank minimums The lowest minimum I’ve seen is $1 million liquid assets, and it usually must be invest with the bank. But more usually the minimum will be in the range of $2-5 million, liquid and invested. Trusts only Anecdotally, we’re beginning to hear that banks prefer to accept trustee appointments, and not executorship. Some financial institutions flat-out reject clients who ask them to serve as executor, even when that client has millions invested with them. Apparently some banks have acknowledged that being an executor is tough work, and perhaps not worth it for them. Customer (higher) fees Most states have laws that set the executor’s compensation. But banks will usually ask you to sign a contract with it’s own fee schedule. Higher fees, of course. Banks have many advantages (“immortality,” private client perks such as fine dining, tickets, etc.), just be aware of what it entails. Contact Us for a Free Consultation