Being named the executor of someone’s estate can be a great honour, but it comes with many practical and emotional challenges.
Family dynamics, complex legal responsibilities and grief can make managing an executorship a daunting task—but it is something you can prepare for.
On top of the emotional distress of losing someone dear, you will be expected to deal with legal and financial issues.
What things should you consider?
Ask yourself these questions—whether you’re considering the request or have already been named an executor.
1. Do you live in the same city as the person who has made the request?
Many executor duties need to be completed in person. It is a lot more costly, time-consuming and inconvenient if you have to travel.
2. Do you have the time?
Being an executor takes a lot of time. Familiarizing yourself with the various duties of executorship will help you better understand what and when things need to happen.
Based on our experience, an executor can expect a simple estate settlement to take approximately 250 hours of direct involvement. A more complex estate could take more than 400 hours, typically over the course of at least a year—and it is not unheard of to have matters continue for much longer than that.
3. Do you know what to do?
Here is a comprehensive checklist of executor duties. Generally, the responsibilities can be summarized as follows:
- Gather the required information and documents, including the Will, and make funeral arrangements.
- Assess the estate’s assets and liabilities, including settling and paying any outstanding debts and claims against the estate.
- Take care of administrative details, such as filing all income tax returns (current and outstanding).
- Distribute the estate’s assets.
What if you can’t manage all the duties of an executor?
During what is likely to be an emotionally stressful time, missteps can occur. This can result in delays in the execution of the Will and could also lead to fractured family relationships, inefficient strategies for dealing with taxes on the estate, and less value for beneficiaries. As an executor, you might also be personally liable for your actions.
The good news is that if you’ve been made the executor of an estate, you don’t have to face these responsibilities alone. Scotiatrust offers professional executor services and can act as an agent for your executorship, allowing you to take some of the responsibilities off your shoulders, while still retaining your decision-making authority. Our specialists at Scotiatrust have experience in administering and managing estates and trusts of varying complexity. Our Estate Assist® service can be invaluable to Executors who are uncertain about what the role entails, face time or distance challenges, are concerned about personal liability or the potential for beneficiary issues.
Scotiatrust has been assisting Canadians for over 100 years with their estate planning needs and can provide you with professional guidance during a time filled with emotional distress.
Making an informed decision
Your choice of executor—or your acceptance of the role—is a decision that should not be made lightly. For many Canadians who have prepared a Will, the choice of executor was likely one of the least considered parts of their plan. Most testators pick a family member or friend, without giving much thought to what the role entails. Likewise, many individuals take on the role of administering an estate without fully appreciating what they are getting into. There’s no doubt that being an executor can be difficult, but with some thoughtful planning and a little help, the challenges you’ll face can be overcome.
Contact us to help you with your Will and estate planning needs.
The process of finding a financial advisor can be overwhelming. It is our job to make that process simpler and easier.
Dri Financial Group’s proprietary Wealth Navigator Process is designed with you in mind.
Its structured framework helps you make an informed decision and feel confident in our team and management practices before we get started.
We offer you a range of services from creating bespoke financial plans and providing investment advice to helping you take advantage of our investment models. If you would like more information on the Wealth Navigator Process or our team, call me any time at 416.355.6370 or email me at richard.dri@scotiawealth.com.
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source https://richarddri.ca/should-you-agree-to-be-someones-executor/
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