Acting as an executor (also called an ‘estate trustee’) is a big job and comes with a lot of duties and responsibilities. When I meet with executors at my law office in the Kanata-Stittsville area of Ottawa, I stress that one of the most important duties of an executor is to keep detailed records and receipts of all transactions involving the estate. This includes a detailed list of the assets of the deceased and the values of those assets on the date of death.
Good record-keeping is important for a number of reasons:• Residue beneficiaries are entitled to know full details of the administration of the estate. If information is not provided voluntarily or is inadequate, an executor can be required to answer to a judge on a passing of accounts.
• To comply with income tax filing requirements, the executor must provide details about assets, transactions, beneficiaries, particularly foreign beneficiaries, and how and when distributions were made.
• For up to four years after the date that a Certificate of Appointment was issued, an executor may be audited by provincial revenue authorities to determine if estate administration taxes, or probate fees, were properly calculated and remitted. Inadequate or poorly maintained records could result in significant fines or penalties.
• Calculation of executor compensation is usually based on a percentage of revenue and disbursements. Without detailed records, executor compensation is difficult to determine and may be reduced as a result.
If you are acting as an executor and aren’t certain if you are keeping adequate records, call 613.836.9915 or email [email protected] our office to make an appointment to meet with me. Together we can review what you need to do and discuss your duties and responsibilities as an executor to make sure your job as executor goes as smoothly as possible.
Reproduction of this blog is permitted if the author is credited. If you have questions or if you would like more information, please call us at 613 836-9915. This blog is not intended to be legal advice but contains general information. Please consult a lawyer or other professional to determine how the information in this blog might apply to you.
Blog posts pre-dated December 1, 2015 were originally published under Neff Law Office Professional Corporation.
