WHAT
IS AN EXECUTOR?
An
executor is the person named in your Will who is responsible
for administering your estate. This person is to act on your
behalf to carry out your wishes, as you state them in your Will.
It is possible to name more than one executor. Before choosing
an executor, it is important to understand an executor's duties
and responsibilities as this will assist you in determining the
appropriate choice of an executor. Whomever you choose, there
are several points which you must keep in
mind when you are making this decision.
DUTIES
OF AN EXECUTOR
- Read the
Will and meet with the family.
- Become
familiar with the deceased's financial affairs and communicate
with beneficiaries.
- Prepare
an inventory of estate assets and value such assets,
including writing to financial institutions, completing
life insurance forms and pension claims and managing investments.
- Obtain
Probate from court, if required.
- Administer
the estate assets, including closing out bank accounts,
safety deposit box, collecting insurance proceeds, selling
real estate, delivering household and personal effects
and, generally, converting assets to cash.
- Pay
all proper debts, including taxes.
- Arrange
for the filing of Income Tax Returns and obtain tax clearance
from Revenue Canada.
- Pay
out legacies, other bequests, and the residue of the estate.
- Submit
an accounting to beneficiaries and obtain Releases from
beneficiaries.
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CHOOSING
AN EXECUTOR
The
executor that you choose should be a person who is trustworthy
and reliable, and one who will be available to be consulted and
to make decisions without delay. With professional assistance,
most family members are very competent and capable to act as your
executor. In most instances, your spouse or other family member
is, in fact, the best choice. A family member is familiar with
other members of your family as well as your own business affairs.
Another advantage of choosing a family member is cost. An executor
is entitled to an executor's fee of 2% to 6% of the value of your
estate, in addition to the usual costs associated with the administration
of an estate. Where a family member or beneficiary acts as executor,
they will frequently waive this executor's fee. To prepare for
the possibility that the person you choose may die before you,
you may wish to name an alternate executor.
YOUR
LAWYER AS EXECUTOR
Occasionally,
a spouse or beneficiary may not be an appropriate choice as
executor, and a professional executor is required. In such
cases, a member of our firm would be pleased to act for you,
or you could appoint a trust company. There are many advantages
to the appointment of a member of a law firm instead of a trust
company.
- Your
solicitor will be more familiar with your business
affairs.
- Your
solicitor practices in the same locale as you reside,
and will be more easily accessible by other family members
than an employee of a large trust corporation whose
offices are not situated in Weyburn.
- You
will know exactly whom you are appointing as your executor.
With a large trust company, the employee you meet today
may not be there tomorrow. It is more comforting to know
the person who will be actually looking after your estate
affairs
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