Written by: Dina Nikseresht
Being named an Executor involves significant responsibility and legal obligations. Executors are appointed to manage and distribute an estate according to the instructions laid out in the will, ensuring that the deceased’s wishes are carried out properly. Before agreeing to take on this role, it is important to understand what the role entails and consider whether you’re prepared to take on the responsibility.
Understanding Executor’s Duties
There are a number of duties which an Executor must carry out, including:
- Locating and Safeguarding Assets of the Estate: You must identify all assets, including bank accounts, investments, real estate, and personal property, and secure them.
- Handling Liabilities and Debts: Executors are responsible for paying any debts, taxes, and other obligations owed by the deceased from the estate’s funds. This includes filling the deceased’s final tax return and in some cases obtaining a tax clearance certificate from the Canada Revenue Agency (CRA).
- Distributing the Estate: After debts and taxes are paid, the executor can distribute the remaining assets of the estate according to the provisions of the will. In the event of an intestacy, the executor must follow Ontario’s intestacy laws, which outline how assets are to be distributed.
- Keeping Accurate Records: An Executor must keep detailed records of all financial transactions relating to the estate. Accurate accounting is particularly critical in the event that a dispute with beneficiaries of the estate arises.
Challenges Executors May Face
- Personal Liability: Executors are held personally liable if they mismanage the estate. Mistakes, such as distributing assets before settling debts, could lead to legal and financial consequences for the Executor.
- Family Disputes: Conflicts can arise if beneficiaries disagree over distributions. Executors are often in a challenging position of maintaining neutrality amongst beneficiaries while adhering to the terms of the Will, and abiding by their duties as Executor.
- Time Commitment: Acting as an Executor is a time-consuming task, often taking months or years to complete. An Executor must make sure they have the necessary time and resources to balance the responsibilities of acting as an Executor with their personal life.
Declining the Role
Being named Executor does not obligate you to act. If, after understanding the responsibilities, you feel you’re unable to take on the role, you have the right to decline. However, it is essential to make this decision before taking any action on behalf of the estate. Otherwise, if you begin acting as an executor (even in minor ways, such as paying bills), you may be considered to have intermeddled in the estate. Once this occurs, stepping back requires a court order, which can be time-consuming and may involve legal costs.
Conclusion
Acting as an executor can be a meaningful way to honor the deceased, however, it is essential to be prepared for the responsibilities and challenges involved. Understanding the obligations and liabilities involved can help you decide whether to accept the role confidently. If you’re unsure about taking on the role of Executor, consulting and estates lawyer can clarify the commitment required and provide support throughout the process.
