Choosing a liquidator for your estate
Past experience reveal that the settlement of estates often marks the end of harmonious relations in the family: Goodbye to holiday gatherings, fun with siblings, anniversaries parties etc.
To avoid these situations, here are are a few basic suggestions:
1. The Will.
It’s of the utmost importance to make a will. Otherwise, the assets of your estate will be distributed according to the provisions of the Civil Code and may not reflect your wishes.
2. The Liquidator (formerly the Executor)
Choosing the right person will guarantee a peaceful and professional distribution of your assets amongst the heirs.
Whom should you choose?
If the children are the beneficiaries, select one who meets the following criteria:
a) he or she gets along well with the others and it is not necessary that he be the eldest.
b) he or she should have a certain experience with administrative and financial matters.
If the spouse is to be the liquidator, he or she should have the same experience. If no one is qualified in the family, it would be wise to appoint a professional known to the heirs : lawyer, accountant, notary etc.
Usually, when the liquidator is a member of the family, his expenses will be reimbursed.
In the case of a third party, depending on the complexity of the estate, the liquidator will be paid from 3 to 6% of the value of the assets plus expenses. The testator sets the fees in the will.
For large and complex estates, you may appoint a specialized firm. Every financial institution has a subsidiary which offer these services.
- Make a will
- Appoint a liquidator who has cordial relations with the heirs and a certain business experience
- If you appoint third parties the fees should vary from 3 to 6 %.