What is "dual capacity" in estate planning?

Dual capacity in estate planning refers to the situation where an individual serves in two different roles regarding a will or an estate. Specifically, when someone acts as both the executor of a will and a beneficiary, they are in a position of dual capacity.

The executor is responsible for managing the estate, ensuring that debts are paid and that assets are distributed according to the terms of the will. At the same time, being a beneficiary means that this individual is also entitled to receive a portion of the estate's assets. This dual role can create complex dynamics, especially in terms of potential conflicts of interest, as the executor must act impartially on behalf of all beneficiaries while also having a personal stake in the estate's outcome.

Other choices do not accurately describe dual capacity. Serving as a witness and executor does not involve the same intersection of interests and responsibilities. Being a beneficiary without obligations does not encapsulate the concept of dual capacity, as it does not include the executory duties. Lastly, managing an estate after the owner's death pertains more broadly to administration rather than indicating dual roles within that process.

This clarity on dual capacity helps to understand the potential implications and responsibilities that come with holding multiple roles in estate administration.