As “The Wealthy Barber” author David Chilton says, “There are two things that I won’t do, even when begged. I won’t help a friend move – too old to say yes to that. And I won’t be a friend’s executor.”
Given the complexities of the role, it’s easy to understand why. An executor, or liquidator in Quebec, is the person who administers a deceased’s estate based on the directions and wishes contained in their Will. While often seen as an honour, executorship comes with significant responsibility, emotional strain, and sometimes even legal exposure. Unfortunately, executors are often unprepared or ill-equipped to carry the burden of executorship. That’s why it is so important to thoughtfully consider the important characteristics and capabilities required of a successful executor.
Here are five characteristics to consider when choosing the right person to be your executor:
1. Objectivity
Given that the loss of a loved one can be a very emotional time, and family members can sometimes come to odds over the assets of an estate, choosing someone who can remain objective, clear-headed and focused on the task at hand is important. Is the potential executor viewed as a neutral party in the eyes of beneficiaries? Are they emotionally stable and supportive? Are they able to navigate complex family dynamics? And, are they able to understand and communicate your wishes effectively?
2. Capability
Consider that your executor will need to undertake a variety of financial tasks, including but not limited to: assessing the value of assets (including potentially your business); filing tax returns; establishing trusts; managing investments; and dispersing the estate’s assets. Assessing your potential executor’s level of knowledge and comfort in these areas is an important step to picking the right person.
3. Jurisdiction
Consider whether your potential executor lives elsewhere, as that can have an important impact on their ability to navigate the estate settlement process and the laws and regulations of your province, state or country. Also consider their network of expertise (e.g., real estate agents, bankers, wealth advisors), which may be excellent in Vancouver where they live, but non-existent in Toronto where you do. This can be an even more acute challenge if they live in a foreign jurisdiction.
4. Time
Consider the potential executor’s proximity to you, your assets and your jurisdiction: do they have the ability to travel to execute their duties? Is it realistic for them to travel from their home to wherever they need to be to execute their duties, and to remain there for an extended period or return often? Are their own circumstances, such as their work or family obligations, likely to prevent them from being able to reasonably execute their duties?
5. Age and health
It’s natural to want to appoint someone you know and trust as your executor. But also consider that if you pick a good friend or family member close in age to you, are they likely to outlive you? What’s their health like? If they are older or in failing health, they may not be the right choice.
To learn more about estate planning and the responsibilities of executorship, speak to us.
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