The role and duties of executors

Hey there, time traveller!
This article was published 04/09/2024 (465 days ago), so information in it may no longer be current.

Dear Money Lady,

I am doing up a new will and want to change my executor because I want someone in my family instead of a friend. I am on my own and in my 70s now. I have two daughters that live near me. Should I pick one daughter, or can I have both?

Thanks,

Gerald

Thanks, Gerald for your question – you should choose both girls.

Making both daughters your executors will allow them to manage the duties together, and if they’re your sole beneficiaries, it makes sense to have them together. When you draw up your will, just make sure that the lawyer uses the wording “jointly and severally” – meaning that one or the other can decide about your estate. If it is not done this way, and written instead as “jointly,” they will both need to agree, sign or transact on all duties together in person, without exception.

Let’s look at the basic duties bestowed on an executor today.

First, they will need to arrange your funeral, cremation or burial, so it’s always a good idea to pre-plan to make it easier on the executor(s) since the decisions have already been made by you. Once that’s done, they’ll need to get all the ID and credit cards of the deceased and the most recent will. All credit cards, memberships and services will need to be cancelled. All bank accounts and any safety deposit boxes should be closed, and a new bank account opened specifically for the estate. The bank will most likely will want to see the probated will to do this. If the deceased had private insurance, the executor is to advise the company of the death and arrange payment of any amounts owing under the policies.

Next, the executor needs to collect all debts or payments owed to the deceased, and this will include promissory notes, corporate accounts, or any accounts receivables. If the deceased was a business owner, they will need to obtain a copy of the partnership or shareholders agreement to determine the estate’s rights, responsibilities, entitlements and liabilities. All real estate assets and investments will need to be transferred to the ownership of the estate account, and it will be up to the executor whether the assets should be sold or liquidated.

Every executor must keep impeccable notes and run everything through the new estate bank account. They will also need to advise CPP and OAS and fill out the application for the survivors’ benefit for any eligible dependents. Capital gains, losses or any tax obligations will need to be determined to file a final tax return with the CRA.

I am pleased that your daughters live near you. There are so many tax implications that arise when your executor(s) is out of province, or even worse, not a permanent resident of Canada.