Duties of an Executor
If you’ve been asked to be the executor of an estate, or have been thinking about creating and/or updating your will, you may be wondering what an Executor is, and what they are responsible for.
What is an Executor?
An executor of an estate is an individual that has been selected to administer the last will of a deceased person. Their role is to carry out the final wishes and manage the affairs of the deceased individual’s estate, ensuring that assets are distributed to the intended beneficiaries. Assets can include financial investments, real estate, collectables (such as art, sports memorabilia, jewellery, etc.), and even other assets including cryptocurrency of which you can learn more about at https://skrumble.com.
Typically, an executor is appointed by the individual who makes the will, but in some situations they can be appointed by a court (in cases where there was no prior appointment of an executor).
Choosing the Right Executor
If you’re thinking about your will and estate, it’s important to find the right individual to act as the executor of your estate. There are several options on who can be your executor: this could be s spouse, child, sibling, or close friend. Common choices also include an individual’s lawyer or accountant, or a corporate executor (such as a trust company). You may also name more than one individual as an executor.
If You Have Been Asked To Be an Executor:
If you have been asked to be an executor, you have been tasked with the duty of executing the final wishes of the deceased. With this comes a number of tasks that will need to be performed. It is important that anyone asked to serve as the executor of an estate be fully aware of the nature and extent of the duties and responsibilities that would be involved in administering the estate. To help guide you, we have put together a brief outline of the primary duties:
Preliminary steps:
- Review will.
- Meet with family.
- If needed, make final arrangements for the deceased.
- Become acquainted with the financial affairs of the deceased.
- Take all necessary steps to ensure that the assets are safe.
- Contact all the beneficiaries named in the will.
Protect assets of the estate
- Manage the estate assets, including investments and income from investments.
- Ensure all real property is appropriately protected and insured and obtain vacancy permits for vacant realty.
- Review insurance on all other estate assets and revise as needed.
- If there is a business, ensure someone is in place to manage the business.
- Redirect mail and cancel subscriptions.
- Advise the deceased’s financial and other advisors, brokers, bankers, and business associates of the death
- Notify Service Canada and other pension providers to discontinue benefits such as CPP, QPP and OAS, if applicable.
Assemble and value the estate assets
- Contact all the financial institutions where the deceased may have assets (or liabilities) for up-to-date information, including account values as at the date of death.
- Do inventory of safety deposit boxes.
- Obtain values of other assets (e.g. real estate, vehicles, jewellery, etc.) and keep all documents relevant to the valuations.
- Complete and submit claims for life insurance and pension or other benefits, as applicable.
Probate
- Prepare inventory of the deceased’s assets and liabilities as of the date of death and apply to court for probate (paying probate fees or estate administration taxes as required).
- Obtain court certification which enables the executor to deal with the estate assets.
- If applying for an Estate Certificate in Ontario, prepare and file an Estate Information Return with the Ministry of Finance within 90 days of receiving the Certificate of Appointment of Estate Trustee.
Estate administration
- Advertise for creditors.
- Arrange for sale of real estate, if needed.
- Close safety deposit box.
- Close out bank accounts and other accounts and register assets in the name of the estate.
- Collect insurance proceeds.
- Follow directions in will regarding the distribution of household and personal items left to beneficiaries, and arrange to sell or dispose of remaining items as directed in will.
- Prepare and file income tax returns (including returns for previous years, if necessary).
- If required, sell assets to obtain funds to pay debts and/or taxes.
- Pay debts and taxes and discharge mortgages, if applicable.
- Obtain a tax clearance certificate from the Canada Revenue Agency (CRA) and any other relevant tax authorities.
Estate distribution
- Pay cash gifts as directed in will and obtain receipts.
- Distribute the residue of the estate as directed in the will.
- Establish any testamentary trust(s) in accordance with the will.
- Prepare a final accounting of the estate for the beneficiaries and obtain a release and their approval of fees.
- If applicable, act as a trustee of testamentary trust(s) created in the will.
If you are considering planning your will and looking for an executor to your estate, we would be pleased to meet with you and advise you on this process. We can provide insight into the key details that come with this important decision. Contact us today.
Assante Capital Management Ltd. is a Member of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see a professional advisor for individual financial advice based on your personal circumstances.