An Executor’s Checklist

An Honour?

Many people may regard being named an executor as an honour. There is a sense that your appointment in the will means that you are trustworthy and competent to complete the task.

 

However, while someone named to the role of executor should indeed be trustworthy and competent, the reality is that the role can be very challenging and onerous. Indeed, while you may feel competent to take on the task of settling an estate at the time your friend or relative is making their will, at the time of death you may no longer feel competent. It’s one thing to take on the task when you have the energy and vigour of relative youth, but you may not have that same confidence in your abilities when you are 80 years old. Fortunately, you can decline the appointment should that be the appropriate choice. Hopefully, the testator (the now-deceased person who created the will) has named an alternate or alternates to replace you.

 

Resources

For this blog post, however, let’s assume that you take on the task. Fortunately, there are resources to help executors take care of their responsibilities. Those resources include lawyers who specialize in wills and estates, professional estate trustees, accountants who can help with tax filing, and financial planners. Professionals with the Trust and Estate Practitioner designation would be especially well-versed in this area.

 

Checklists

It appears that many institutions are aware of the challenges involved in winding up an estate. A quick search online resulted in several checklists designed for executors. The following is a brief overview of those responsibilities with a few examples.

 

Collecting Necessary Documents

Included in this category would be:

 

• Legal documents. The will, in particular, would be necessary, as would a marriage licence, if applicable.
• Property information such as vehicle registration or the deed to a home.
• Utility statements for gas, hydro, phone, and internet service.
• Government-issued documents such as the Social Insurance Number (SIN), driver’s licence, and health card.
• Insurance policies: Most commonly, these are life insurance, home insurance, and vehicle insurance.
• Account numbers and passwords for various memberships or accounts.
• Bank deposit accounts and sources of credit such as mortgages, lines of credit, or credit card statements.
• Investments: RRSPs/RRIFs, TFSAs, RESPs, and non-registered accounts.
• Employment information such as contracts and pension statements
• Business documents, if the deceased owned a business, these might include the business licence or shareholder agreements
• Tax-related information could include recent tax returns, notices of assessment, or property tax bills.

 

Funeral Planning

• In addition to making the appropriate funeral, burial, or donation arrangements, you may need to address the following:
  • The care of dependents, pets, and/or possibly livestock
  • The security of the property of the deceased
  • The immediate financial needs of the deceased’s family
  • Proof of death statements from the funeral director; several copies will likely be required; you may also need copies of official death certificates issued by the province where you live
  • Publishing an obituary; depending on the history of the deceased, this could be placed in several publications
  • Mail, which will need to be redirected if the property is left unoccupied

 

Actions Directly Associated with the Will

• Locate and read the will
• Understand your responsibilities and liabilities as executor before continuing
  • Renounce executorship and allow an alternate to take over if you do not want to continue
• Notify beneficiaries and request necessary information from the beneficiaries to execute the will
• Keep detailed records of all estate-related activities
• Seek legal counsel as necessary for assistance with letters probate and distributions from the estate

 

Probate

• Probate is not always necessary, but refers to the process of the courts formally accepting a will

 

Additional Areas of Executor Responsibility

• Financial Responsibilities
  • Cancel credit cards
  • Create an inventory of assets and liabilities
  • Settle debts and claims
  • Publish advertisements for creditors before the distribution of the assets
  • Review tax returns over the last six years to confirm they were submitted
  • File any required tax returns, including the terminal tax return; this is when an accountant is often most needed

• Responsibilities for real estate and other forms of property
  • This may involve selling the property
  • Review mortgage and contact mortgagee (bank, trust company, etc.)
  • Update records at the land registry/titles office
  • Arrange for valuations of real estate, personal property, etc.
  • Measures should be taken for the maintenance, protection, and care of the property if it is left vacant, possibly including changing locks, as well as addressing property tax and utility payments

• Applications, where applicable
  • CPP death benefit
  • CPP survivor’s pension and children’s benefits
  • Allowance for the survivor
  • Child rearing provision
  • Guaranteed Income Supplement
  • Victim Services Benefits
  • Workers Compensation Benefits
  • Vehicle Insurance Death Benefits

 

Length of Time to Settle an Estate

• A rule of thumb, known as the “executor’s year,” refers to the general expectation that upon receiving a Grant of Probate or Administration, an executor can settle an estate in approximately a year.
  • Failure to act promptly may result in the executor being removed by legal means at the request of a beneficiary
• Simple estates may be settled within six months; complex estates may take three years

 

Compensation for Acting as an Executor

• Compensation for reasonable costs incurred in the administration of the estate
  • Costs need to be carefully documented
• The will may also identify specific compensation for the time and effort spent administering the estate.
• If the will does not state a specific amount, the executor may claim up to 5% of the aggregate value of the estate. However, factors in determining the fee include:
  • the value of the estate
  • the care and responsibility involved
  • the time required to perform the executor’s duties
  • the skill and ability of the executor
  • the success achieved in the administration of the estate

 

Executor Checklists Available Online

The following list of URLs provides you with a few checklists you may find useful. The summary above was derived from a list published by the online will company willful.

Willful and Cadence A Checklist & Guide to Settling An Estate

CIBC Executor Checklist

RBC Executor Duties Checklist

TD Executor Assist Kit

Scotiatrust – Executor duties checklist

BMO Executor’s Task List

 

Consequences of This Review

My thoughts upon reviewing the long list here are that someone who writes a will plays a major role in the job that the appointed executor will be required to undertake. Imagine, however, what the administrator of the estate will have to go through if you don’t make a will at all. One simple suggestion might be for the executor and the testator to get together and organize the necessary information to make it easier when the time comes.

 

This is the 203rd blog post for Russ Writes, first published on 2023-06-26

 

If you would like to discuss this or other posts, connect on Facebook,  Twitter, LinkedIn, or Instagram.

 

Click here to contact me for an appointment.

 

Disclaimer: This blog post is intended for general information and discussion purposes only. It should not be relied upon for investment, insurance, tax, or legal decisions.

 

Image by vectorjuice on Freepik