So what does an executor do, exactly?

Hey there, time traveller!
This article was published 21/09/2020 (1909 days ago), so information in it may no longer be current.

Last week we had a question about choosing an executor for a Will and to follow up I want to go through some of the duties your executor will have to carry out.

It is not a simple task. The laws vary wildly from one province to another and if you are tasked with this job, you should always seek professional guidance. Here are some of the basic duties bestowed upon an executor and some things to keep in mind when choosing one:

1.  Arranging the funeral, cremation or burial —You will need eight to 10 original death certificates. Obtain the ID, credit cards and most recent will of the deceased (you will also need eight to 10 copies of the notarized will).
Cancel the following on behalf of the deceased: driver’s license, cable, telephone, memberships, credit cards, subscriptions, or leases. Determine if there are any pre-authorized payments coming out of the deceased’s bank accounts. These accounts need to be closed and a new bank account opened specifically for the estate bate). Close out the safety deposit box if they had one.

2.  Provide the beneficiaries named in the will with a copy — Arrange storage of valuables and important documents.  If the deceased had private insurance, advise the company of the death and arrange payment of any amounts owing under their policies.  Life insurance proceeds should be paid to the beneficiary or the estate account.  RRSPs will need to be rolled over to a spouse or eligible dependants.

3. Collect all debts or payments owed to the deceased — This includes promissory notes, corporate accounts, or accounts receivables.  If the deceased was a business owner, obtain a copy of the partnership or shareholders agreement to determine the estate’s rights, responsibilities, entitlements and liabilities.

4. Review the will with a professional and determine if the estate is solvent and if probate is required — A preliminary valuation of the estate should be done.
Determine the adjusted cost base for tax purposes of each capital property. If you do not live in the same province as the deceased, you may need to post a bond before taking over the estate to protect creditors or beneficiaries. This bond would be for the full value of the estate.

5. Redirect the deceased’s mail to your address — All real estate should be transferred to the executor and any mortgagees will need to be notified. Contact all financial institutions to have investment accounts transferred into the executor’s name.

6. Consider which assets should be sold or liquidated — Keep impeccable notes and run everything through the new estate bank account. Advise CPP and OAS. Apply for and fill out the application for the survivors’ benefit for eligible dependants. Determine the deceased’s income for the year until death, capital gains/losses and tax obligations in or outside Canada.  

7. Prepare and file all necessary income tax returns to the date of death — Request clearance certificates from all relevant tax authorities. You may also need to file an estate income tax return. Please seek professional advice since rules vary by province.

Death is not a nice topic to discuss but that discussion is necessary. If you are a business owner, have specific wishes, or simply feel that your estate would be better handle by a professional, you could choose a trust and estate service that are available at most financial institutions.  Without the stress, grief and emotion, a trust company can carry out all necessary executor duties.

Christine Ibbotson is the author of How to Retire Debt Free and Wealthy. If you have a money question, please email her through her website at: www.askthemoneylady.ca