I recently met with Ryan at my law office in the Kanata-Stittsville area of Ottawa. His aunt had died suddenly from a heart attack and her Will named him as executor (officially called ‘estate trustee’). Ryan and other nieces and nephews were named as beneficiaries.
Ryan said his friends and colleagues had warned him that being an executor is not easy and can take a lot of time. Although he wanted to honour his aunt’s wish that he act as executor, he worked full time and had two small children at home. He wasn’t sure he had the time or energy to take on the job.
Ryan is not alone. The first thing most executors want to know is exactly what they are getting themselves into.
I don’t sugarcoat things when advising executors. The truth is that acting as an executor can be a big job and it comes with a lot of responsibility. An executor is in a special position of trust and is a ‘fiduciary’. As a fiduciary, an executor must act with honesty and loyalty and carry out their duties with care and attention.
Executors, as fiduciaries, must always act in the best interests of those with an interest in the estate. Any conflicts of interest must be avoided. An executor can breach his or her fiduciary duty in a number of ways: misusing estate funds, not treating all the beneficiaries the same, mixing his or her own funds with estate assets, etc. The law takes any breach very seriously.
An executor has many duties and responsibilities. Some of these are:
• locating and probating the Will (if there is one);
• arranging the funeral and disposition of the deceased’s remains;
• locating and securing the deceased’s assets;
• liquidating the deceased’s assets as necessary including arranging for the sale of real estate;
• paying debts;
• filing tax returns; and,
• distributing the estate to the beneficiaries.
The above list is not exhaustive as an executor’s duties will vary depending upon the amount, nature, and complexity of the deceased’s assets, the age and residency of the beneficiaries, and the knowledge and skill of the executor. Some duties may be carried out by the executor personally or through a professional hired by the executor such as a lawyer or an accountant.
Have you been named as an executor and aren’t sure whether you should take on the job or not? Call (613-836-9915) or email ([email protected]) to make an appointment to meet with me to discuss what acting as an executor is all about so you can make an informed decision as to whether you wish to take on the role.
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.
