Here’s a refresher: an executor is an individual (typically it’s an individual, but it can be an institution like a trust company) named in a document called a Will, who, in being named, becomes responsible for administering the estate according to the final wishes of the deceased as outlined expressly in their last Will and Testament, also in accordance with applicable laws. 

Back in April I wrote about how bestowing the role of Executor or Executrix to someone was historically a great compliment; now you may be saddling them with an unwanted burden. That was from the perspective of choosing your executor.

Let’s flip this around and consider what you need to know if you are named executor for someone’s estate.

Here’s the very first step, and it’s something most people don’t do…

Get a copy of the most recent will and read it!!

Then get professional advice on your duties and decide whether to accept the role or not. You do have a choice to Act as Executor or Rescind, in other words, accept or decline the role.

When you take on the role of executor, you take on a long list of duties. In addition to these duties, there are several activities you’ll be expected to oversee right away, which come as a surprise to many executors I’ve talked to.

The executor, not the family, is responsible for funeral arrangements. Often, they’re one and the same, but not always. It’s up to the executor to review the will for funeral arrangements /instructions, assist with the arrangements, and obtain multiple copies of the death certificate.

It’s the executor’s job to ensure any dependent family member’s financial needs are taken care of, review all domestic contracts (prenuptial or marriage contracts, business buy/sell agreements), apply and pay for probate and complete the Ontario Estate Information Return.

Executors are then responsible to settle the estate. This will include:

• Managing beneficiary relationships through clear communication
• Safeguarding all estate assets (don’t forget digital assets!)
• Valuing the estate
• Administering the estate by managing assets, paying bills/debts, canceling benefits etc.
• Filing and paying taxes, per municipal, provincial and federal requirements
• Distributing the net monies and sharing the legacy.

Just like being named Power of Attorney, taking on the role of executor is an enormous job, for which you are entitled to financial compensation. Professional organizations hired to fulfill this role (like Royal Trust) will write their fee into a signed contract, referenced in the will.

If there’s no compensation or direction stated by the will, you can look to provincial laws for guidance. (Keep in mind, any monies you receive are taxable as income.) Of course, expenses incurred to settle the estate can be reimbursed (reimbursements aren’t taxed as income). You’ll be accountable to the beneficiaries; be sure to keep detailed records.

I know that when an executor is also a family member and/or beneficiary they will often decline compensation. That’s up to you. As a professional who recognizes the immense responsibility and time commitment, do consider the hours, learning curve, extra work and liability involved before you decline payment for all your work, time and effort.

At the same time that you’re acting as executor, you may feel overwhelmed with grief at the loss of your mother, father, partner, brother, sister, friend…. Please remember that you’re not alone; there are professionals out here willing to help.

So -- if you know you’ve been named an executor I encourage you to start early and at the beginning: read through the will, and think about where you can lean on professionals for support and advice. I’m willing to help!

You can email me here for your copy of our Executor/Liquidator Duties Checklist.

You can also go back and listen to April episodes of I'm a Millionaire! So Now What? (listen & subscribe here) and tune in throughout June for wonderfully human and info-filled shows about Estate Planning, tough conversations and family matters most people won’t discuss.

Or apply here for a Personal Prosperity Discovery Session to learn how to build your Roadmap to Real Riches - a fresh take on wealth management that optimizes how you spend, save & share your wealth, including the important preparations involved in estate planning.