One of the last steps an executor must perform as part of their executor duties is distributing the estate assets to the beneficiaries according to the will. In some instances, the will-writer will include very specific instructions or perhaps they only name one beneficiary, so the executor’s role can be simple. But more often than not, the instructions in a will are broad (e.g., beneficiaries get everything, but no specifics about who gets what) and there is more than one beneficiary, usually siblings. Therefore, the executor plays a crucial role in ensuring the distribution of estate assets is carried out fairly and in line with the deceased’s wishes. While the overall responsibilities of an executor are important, the specific challenge of dividing assets among siblings often requires extra care, diplomacy, and organization.
As executor, you’ve spent a lot of time understanding the estate. But now is time to put pen to paper. Before dividing estate assets, you need to determine the value of the estate. You’ll have a pretty good idea because you’ve done things like creating an inventory of real and personal property and know about cash on hand in bank accounts. You’ve also done things like paid bills and taxes. Now you pull all this together so you can understand the value of the estate–essentially what’s in the estate after debts, bills, etc. are paid.
If a will gives one beneficiary an incredibly valuable boat and another beneficiary a worthless stamp collection, that was the decision of the will-writer and you can’t change it even if the beneficiaries don’t think it is fair. But if, on the other hand, the will-writer gives beneficiaries all their personal property to be equally divided among those beneficiaries, but does not specify who gets what, as executor you must keep fairness at the forefront.
In the example of the boat and the stamp collection, the executor would need to get an appraisal (essentially an expert’s estimate of the value) so the assets could be divided fairly. If the will instructs the estate to be divided equally between siblings, the executor may need to do some leg work to get an appraisal so that fair distribution is possible. Being transparent about valuations can help reduce tensions.
Executors often have to come up with a plan to divide sentimental items that have little monetary value but are incredibly valuable to siblings. Come up with a plan for how you will distribute these items such as drawing lots, using a rotation-based selection process, or getting siblings to rank preferences. Whatever plan you choose, share it with the beneficiaries in advance and follow the plan fairly during distribution.
Siblings who are beneficiaries will be mourning at the same time you are working with them to distribute the estate assets according to the will. This means emotions can be raw and has the potential to heighten tension. Be prepared for managing family relationships, but also know that you can get help. When disputes arise, sometimes an impartial third-party can help mediate the conflict. Often the estate attorney will have experience with managing conflict among siblings during the distribution of assets to beneficiaries and can offer helpful and creative solutions for an executor.
Dividing an estate among siblings is rarely simple, but the executor can play a pivotal role in ensuring the process is as smooth and equitable as possible. By focusing on transparency, neutrality, and careful planning, the executor can honor the deceased’s wishes while helping siblings navigate this emotional time with respect and fairness.
Distributing assets is just one of many executor duties. Getting these tasks right, and done in the right order, is crucial. That’s why Executor.org’s customizable plan walks executors through the 100+ steps in the executor role.