Dear Dave,

What exactly is an executor, and what part do they play in someone’s will?

— Gabe

Dear Gabe,

Simply put, an executor manages the last will and testament of someone who dies. Acting as an executor is an honour and a huge responsibility. As the designated representative of the deceased, executors are responsible for making sure the deceased’s assets are distributed according to the will.

Executors deal with probate court, tell everyone who needs to know about the death, pay outstanding debt, distribute assets, and generally represent the deceased person whenever needed.

Think of someone you know who is trustworthy, conscientious and good at talking to people. This person also needs to be mature, capable of handling life events with a level head and have an honest heart.

The amount of time needed for an executor to handle your affairs when you’re gone could be enormous.

Depending on the complexity of your estate, it could take months — or even years. Once you settle on someone as executor, be honest with them about all the responsibilities that come with the job. And if you’re unable to find someone appropriate, you can always hire a professional executor.

Great question!

– Dave

Dear Dave,

What is the best way to invest a one-time lump sum of $2,500? My plan is to leave the money alone and let it grow for a long time.

— Karole

Dear Karole,

Some people play single stocks on one-time investments like this, but I don’t like that idea. Single stock investments don’t consistently generate the kind of returns over long periods of time that a good mutual fund will. Why sell yourself short?

When it comes to investing, I consider ten years or more to be a long time. That being the case, I’d suggest a growth stock or growth and income mutual fund with a solid track record of ten to 20 years.

I hope this helps!

— Dave