More working Canadians are having to care for not only their children, but also their elderly relatives, a juggle that can become challenging. The prevalence of this so-called “sandwich generation” has shed some light on this immense burden, particularly with the responsibility of the “sandwiched” to tend to their parents’ affairs, as well as those of their children.

Whether it be as a spouse, child, or close friend, sooner or later you may find yourself assuming the responsibilities of an executor. While this may feel like an honour, it is also a tremendous responsibility, one that becomes even more difficult when coupled with the huge emotional burden of a personal loss. The prospect of carrying out your duties as an executor, particularly when grieving, may feel overwhelming.

Having addressed concerns from clients who have been through the process of estate settlement, I’d like to share some pointers on how to navigate these difficult times.

Acting as an executor means being responsible for a lengthy list of tasks, and interfacing with various individuals, professionals and tax authorities, before finally distributing the remainder of the estate to the beneficiaries. Key considerations are as follows.

Key Contacts

Executors most commonly need to deal with beneficiaries, investment companies, lawyers, the Canada Revenue Agency (CRA), Service Canada, accountants, insurance companies, company pension departments, government pension departments, mortgage lenders, auctioneers and appraisers, financial institutions, real estate agents, and business partners.

Main Duties

• Obtain the death certificate of the deceased by the province or funeral director
• Locate all of the deceased’s assets (including any digital assets, such as social media accounts and their associated passwords) and produce a full accounts list and valuing of the estate
• Cancel all government benefit accounts (including CPP, GST/HST credits, OAS etc.), utility accounts, sole bank accounts, as well as ID cards (SIN card, passport, Health Insurance Card, Driver license etc.)
• File income tax for the deceased and pay the estate’s debts and taxes
• Claim the death benefit (including death coverage from insurance company, CPP death benefit and survivor’s pension, company pension benefits transferred to the deceased’s spouse and group insurance).
• Obtain the Certificate of Appointment of Estate Trustee with a Will after probating a Will
• Distribute the remainder of the estate to the beneficiaries according to the Will

Filing income tax for the deceased:

You will have to file a final return for the deceased covering the period from January 1 of the year of death to the date of death. You are required to meet the deadline of the final return to avoid the late penalty charge.

If the date of death occurred between January 1 and October 31, the tax return is due by April 30 of the following year. If the date of death was between November 1 and December 31, the tax return is due six months after the date of death.

The tax-related responsibilities are as follows:

• File a final income tax return for the deceased, for income from January 1 of the year of death up to and including the date of death, including salary, dividend, interest, rent and annuities, as well as deemed Capital Gains or Losses etc.
• File a T3 Trust Income Tax and Information Return, for income earned after the date of death as earned by the estate
• File a U.S. estate tax return for a deceased Canadian, if he or she held at least US$60,000 of US situs assets at the time of death, even if there is no US estate tax liability.

It is wise to understand the role and responsibilities of executorship before committing to the role. It requires one to devote a great deal of time, energy and attention to detail, after suffering a personal loss. For those who feel they may not be able to handle the responsibility as an executor, one should ask their advisor to introduce them to a trusted professional executor at a trust company. A will is often one’s last message to his or her loved ones, and many want to ensure they are heard by properly carrying out their wishes.