When drafting up a Last Will & Testament, there’s one part of the process that needs special consideration: Who to choose to ensure your estate is properly distributed and managed after your passing? It’s up to you to appoint an executor and/or estate trustee; if not, the courts will appoint someone you may not want in that role. The key is to choose someone who can do it right! It’s a big job within a complicated, legal process…and not one to be taken lightly.
First, let’s review the specific roles. An executor of a will is someone who executes or oversees the administration of the estate and who may also look after other ‘final wishes’ such as the funeral or cremation details. An executor is sometimes confused with an ‘estate trustee’, who is responsible for managing only certain assets or trusts (such as trust funds). An executor and trustee can be the same person, but it isn’t necessarily recommended in more complicated financial scenarios involving trusts. If different people are appointed to each role, they must work together to ensure the estate and finances are managed correctly and legally.
The majority of married or common-law Canadians choose their spouse or adult child(ren) to be their executors, but in many cases, it may need to be someone who is outside of the immediate family. It can be a friend, neighbour or distant relation, or it can be an outside party such as a lawyer, consultant, or accountant.
Key considerations for an executor:
- Reliability
Select someone you trust, who’s organized, and who can be relied on to take this job seriously and manage it with integrity.
- Can handle stressful situations
Being an executor means there may be tough decisions to make, angry or emotional family members (or others) to deal with, and lengthy or complicated legal processes to learn and manage. The more they are able to comfortably handle the responsibility and potential issues that arise, the better.
- Availability
Being an executor is a hands-on job, and can’t easily be done remotely. For this reason, it’s important to select someone who has the time and availability to make the calls, attend the appointments, review the will and finances, and work with any other groups such as lawyers, bankers, investors, realtors, bookkeepers and so on. Sometimes an executor has to look after the deceased’s property until it sells or is disbursed, which could involve maintenance, paying bills, checking the mail, etc. It can be a demanding responsibility, at least for a short time, so be sure your appointee understands the job fully before committing.
- Long term well-being
It may sound gloomy, but make sure you appoint someone who is expected to be alive and well in years to come. If a person is mentally or physically incapable of doing the job, a new executor may need to be appointed by the courts, thus slowing down and/or complicating the process.
- A basic understanding of the job
Don’t appoint someone as executor or estate trustee without asking them first; it may come as an unwelcome surprise for them otherwise. Be sure to go over the main responsibilities with them and let them know where to find your will. While they are entitled to a small percentage of your estate for their efforts (typically up to 5%), they may or may not feel up to the job, especially if they live far away or don’t have the time.
If you can’t find a reliable executor within your circle of family or friends, you can always retain the services of a reputable law office or hire a corporate executor to administer your estate according to your wishes. Having a current, legally binding will with a trusted executor appointed will help ensure that your assets and loved ones are looked after, giving you great peace of mind! Don’t let another day go by without having a will. Connect with Ares Law in Parry Sound; we’re here to help you make informed decisions that best protect you and your family. Call our legal team today at 705-746-6444 and let’s get started!
