Your role as executor

The role of the executor is not to be accepted lightly.

Executors are usually appointed because the testator trusts them and expects the person chosen to carry out the wishes as expressed in the will. While it’s an honour to be so highly regarded—and administering a loved one’s estate can be quite rewarding—being an executor can also be time-consuming and stressful.

Before you accept, make sure you’re aware of your responsibilities.

A lot of work

What exactly does your new role entail? As an executor, you’re responsible for administering the deceased’s estate and distributing the property in accordance with the terms of the will.

Your role generally begins with locating and reviewing the deceased’s will and ends with the closing of the estate accounts. In between those steps is a surprising amount of work. While a great many tasks or duties are common to all estates, the exact number will depend, among other things, on the nature of the deceased’s assets and the terms of the will.

Some of your likely duties will be:

• Obtaining probate, where required
• Obtaining valuations for all estate assets and ascertaining cost base for capital assets
• Preparing an inventory of assets and liabilities
• Ensuring all valid estate debts are paid and receipts obtained
• Ensuring all debts (mortgage, rent, etc.) owed to the estate are collected
• Reviewing any relevant contracts, including domestic agreements, shareholder or partnership agreements
• Considering potential for claims against estate and applicable limitation periods
• Determining which, if any, assets are to be transferred in specie (in its present form) and which are to be converted to cash
• Preparing interim and final estate accounting
• Preparing interim and final releases from beneficiaries

You are also responsible for filing the deceased’s terminal T1 (year of death return) and unfiled returns for previous years, and have a duty to maximize the value of the estate. As such, you should consider filing additional optional returns, if they could offer a tax liability reduction.

Other key concerns

Being an executor involves more than just expertise, it requires time. You should also consider any potential for personal liability or family complications.

1. Time and availability

Administering even a relatively simple estate with no ongoing trusts takes considerable time. Estimates generally range from 18 months to more than two years of occasional work.

Your work will probably be bookended by two key events, each taking weeks or months to finalize: obtaining letters probate and obtaining final clearance from CRA.

Many of your duties, such as dealing with the deceased’s residence and personal effects, must be handled in person. If you live far away, consider the travel time before you accept.

2. There are legal responsibilities

A breach of trust, error or omission resulting in a loss to the estate may result in personal liability to you. The fact that insurance policies are now available to protect executors from such risk clearly underscores the validity of this concern.

3. Family can cause issues

If you’re related to the testator, potential family conflict should also be considered. Conflicts can sometimes arise when families try to organize a loved one’s estate.

Also consider the possibility that working through grief while settling an estate may simply be too much for you to handle. This doesn’t mean you should decline to be an executor for a family member, but if you accept, you should be aware of possible family complications.

Accepting the appointment

Once you’ve given sober thought to what the job entails, you can indicate your acceptance by applying for probate.

You’re deemed to have accepted the role once you begin acting on behalf of the estate, referred to as “inter-meddling.” Inter-meddling acts include making inquiries in respect of the deceased’s assets and liabilities, and taking steps to protect estate assets.

Once you start acting, a court order is required to relieve you of the role.

Elaine Blades is Director, Estate and Trust Products and Services at Scotia Private Client Group.