Settlement in trusted hands

An executor is appointed in a will to carry out work around the estate. An ordinary executor manages the estate, identifies assets and debts and pays debts that must be paid during management. The executor may also deliver legacies and prepare the inheritance tax return. The exact duties depend on the law and on the will. An ordinary executor essentially prepares the estate for final distribution. Once management is complete, the heirs are generally responsible for distributing what remains.

An executor's powers are determined by law and the will. An ordinary executor may manage estate assets and pay debts that must be paid during management. During this management, the executor represents the heirs for the execution of their task. The heirs cannot simply dispose of goods under the executor's management. The will may contain additional rules and powers. In every estate, it is therefore important to look not only at the title executor, but especially at the exact provisions in the will.

An ordinary executor may not automatically divide the estate independently. Final distribution normally lies with the heirs. An executor may sell goods if needed to pay estate debts, subject to any additional conditions in the will. If the deceased also appointed the executor as settlement administrator with broader powers, that person may in some circumstances distribute or transfer assets independently. The will must therefore always be reviewed first. The function title alone does not say enough about what someone may actually do.

In practice, testamentary executor usually means the executor appointed in a will. The term is mostly an older expression. An ordinary executor manages the estate and handles tasks such as paying debts and preparing the estate for distribution. An executor who is also appointed as settlement administrator can receive broader powers. The will may state that this person may also distribute the estate independently. The real difference is therefore not only the job title, but the powers recorded in the will.

The executor's fee can be determined in the will. The deceased may have recorded a fixed amount, an hourly rate or no fee. If the will says nothing, Dutch law generally gives the executor a right to one percent of the value of the deceased person's assets on the date of death. The fee and other costs connected with the executor's work are generally paid from the estate. With a professional executor, it is wise to clarify in advance which arrangement applies under the will and which additional costs may arise.