There are many responsibilities that fall on the shoulders of your Executor. A generalized overview of what may be required includes: immediate needs, calculation of assets and liabilities as well as the finalizing process.
Historically it was seen as an honor to be asked to represent an Estate as Executor. The time, knowledge and other potential personal liabilities often create a resistance to accepting this honor nowadays. Always make certain your Executor or potential Executor is aware of the responsibilities that comes with the job.
Every Estate is different and each province is different so please understand that the information shared here is simply a general guideline. For specific interpretations and clearest understanding you should always ask your Legal Professional for guidance.
Would you like a more detailed outline ? See the envelope below to send your request or ask further questions.
Choosing a Good Executor
There are many considerations to be made when choosing
an Executor. Once a suitable candidate or candidates have
been found will 'they' be willing to assume the responsibility?
Individuals that have had the task are often unwilling to
do it again. That may suggest that it is not a task to be
taken on or offered without thorough deliberation.
A couple of points that should be made first.
An Executors' role begins at time of death. An
Administrators' role begins at the time of judicial
appointment. If there is no will or the elected Executors
are unwilling or unable to perform the function at the
time of death it then becomes the responsibility of the
courts to select an Administrator to perform that function.
Another related issue could be the one of determining
that the will 'in hand' is indeed the most current will of
the deceased. Remember Howard Hughes ...it took years
in the courts to satisfy that particular case... those costs
took a terrific toll on the value of his Estate.
So...Who can I choose ?
Often we look to friends and family first.
Are they capable...
It's not a simple responsibility so you need to assure
yourself with their competence in this arena.
Are they willing...
Many people turn down the 'honor'
Will their age be an impairment...
At the age of 42, your uncle at the age of 53 may not
be the best choice. His job doesn't start until the time
you die. You could be 75...that would make him 86...
might not be great timing. Of course,
you may know something today that makes
that decision the logical one.
Do they understand that many months and sometimes
years will be required to complete the task...
Perhaps there are trusts involved, businesses,
investments, Guardianship considerations, beneficiaries
who don't get along well or something else...
What about the liabilities they assume in taking on the role
Yes there are potential liability issues.
Always make sure your potential Executor
knows what they are.
It is possible (and under certain conditions mandatory)
that your Executor will be required to post a bond in
order to proceed with the role.
Do they have the time to do all the work that's entailed...
A simple Estate may take very little time or energy to
work through the processes.
On the other hand a more complex one could
be the equivalent of a very demanding part time
job (or more) and for a period lasting as little
as several months and sometimes... years.
Will this responsibility act as the source of rivalries...
Perhaps you have three adult children. Chances are that
if they don't get along now they aren't likely to get along
better if one of them is singled out as the Executor and it
may even be more complex if they are jointly responsible.
Will this role make another survivor or beneficiary
vulnerable to abuse...
Sometimes we need to think about some hard facts.
Perhaps an offspring has a 'habit' that complicates life.
Will that make Mom, Dad, Aunt or Uncle vulnerable to
some sort of abuse...financial, physical or otherwise.
These represent only a few of the considerations. There
may be lots more that we can think of. Please give me a
call or send me a note.
Who else?
Some people turn to Trust companies.
Are they capable...
Most certainly.
Are they willing...
Maybe...maybe not. Most Trust companies have an
entry level requirement . Generally, the Estate must
have a probate value of a million dollars (sometimes
they'll consider lesser valued Estates of approximately
4-5 hundred thousand if that is their mandate or if
the work isn't too complicated).
Once committed, will a Trust company stay committed...
If they have a entry floor of $750,000 and your
Estate value falls to $650,000 for example they may
just send you off to employ the alternatives.
I have personally known of a Trust company
withdrawing after a death because they were faced
with complexities they didn't want to deal with.
(That can be quite legitimate but it can complicate
the settling of the Estate.)
What about rivalries...
This problem should be minimized.
What about abuse...
One can never rule out the potential for abuse.
The Administrator that carries out the work in
these situations very often has no first hand
knowledge of your circumstances and may
be working out of a distant office so there
is little likelihood that they could help or be
aware of these kinds of issues.
What about the personal touch...
With friends or family in charge you may have a
greater sense of there being a personal touch.
While this may be good because 'they' know which
teacup and saucer goes to Jill and which one goes
to Jane; that may work the other way as well.
With a Trust company it will be their experts that
do the work. The Lawyer or Accountant or Financial
Adviser or other Trusted Professional that you have
worked with over the years will generally be out
of the picture.
The fees involved generally are moved to the
central office of the Trust company so the community
that was part of your life is not generally part of
your death.
What about my privacy...
An Estate that goes to probate becomes a matter of
public record.
Who will actually look after my Estate...
You may have an established relationship with a given
Trust officer. There is no guarantee that person will
actually be the person who helps settle your affairs.
Unless there is a known 'time line'...
These represent only a few of the considerations. There
may are lots more that we can think of. Please feel free
to give me a call or send me a note.
...and Who else?
Other people may turn to their Professionals.
Accountants and Lawyers are perhaps chosen most
frequently from the professional resource sector. There
are other specialists that provide this service as well.
(That may depend upon your province of residence.)
Are they capable...
It's always a good idea to get references from friends
and family you know and trust. Check with others
that have had first hand experience. A divorce
specialist might not be the right choice where a
estate specialist may well be.
An accountant may have a developed expertise
and then again, maybe not. If a friend or family
member is Executor they may consult with
these advisers when necessary to facilitate the
process in any case.
If your Executor is the Lawyer that drafted your
Will it is often suggested that the Will be
reviewed by an independent legal resource.
Are they willing...
As with Trust companies you may find there are
conditions. You will always need to determine these
factors before proceeding.
Generally the conditions and questions that apply to
Trust companies will apply to other professionals.
Trust companies are controlled and regulated by
legislation. Lawyer carry malpractice insurance for
these responsibilities. You will need to determine
what other protection is available on an
individual basis.
These represent only a few of the considerations. There
may be many more that we can think of. Please feel free
to give me a call or send me a note.
You may want to look at the page on Wills.
FAQ's ... The 'Frequently Asked Questions' page is found in the off site Newsletter. Find more information by clicking here.
