WHAT DO I DO AS AN EXECUTOR?
A close friend or family member has passed away and has appointed you as the executor of his or her will. While you are dealing with loss, it is a common feeling to not know where to start and what your responsibilities are to help. Feel free to use our executor checklist to get a more fulsome sense of what common tasks an executor is required but for convenience, see below for a high level overview.
The executor has a duty of care to the beneficiaries of the estate, and runs the risk of legal liability should there be a dispute. Therefore, it is important that executors contact their professional advisors for advice on fulfilling their responsibilities.
1. Locate and review the original Will
The first thing to do when you think you are named as an executor is to try to locate a deceased’s person’s will to confirm your authority. Ensure that the will was not an old will or was revoked by the deceased and replaced with a newer will that you didn’t know about. This is not always easy and involves some detective work. We can help. If you can’t find the original will, some places to check are the deceased personal files, any safe in his/her home, any safety deposit box held at a financial institution, and the office of a lawyer they may have used. After doing all these things, if you are still unable to locate the original will, you can do a Wills Registry search through the BC Department of Vital Statistics to see if the deceased ever filed record of his or her will.
2. Funeral Arrangements
If you believe you are the named executor and have some evidence to support this, the next step (and maybe the first depending on how long it takes to locate the Will) is to organize funeral arrangements and deal with the deceased’s body. The Executor has the legal responsibility for making decisions over a deceased person’s last wishes and they should be aware of what is happening with respect to either a cremation or burial. If you have located the will, or a copy of it, check the will for specific funeral wishes, and, if possible, follow the deceased’s wishes. The person who instructs the funeral director is liable for the cremation his account but is entitled to reimbursement as a first charge against the assets of the deceased's estate, provided they are not excessive. You can obtain an original death certificate from the funeral home.
3. Responsibility of Acting as Executor
At this point you should consider whether you want to take on the responsibility of acting as Executor. Your duties as Executor may carry on for years, and may take up a considerable amount of your time. If you do not want to accept this responsibility, you should renounce as Executor immediately. By undertaking the responsibilities of an Executor, such as taking control of the deceased's assets or dealing with any other matters relating to the deceased such as instructing a funeral home, the law says that person has "intermeddled" in an estate and they must continue to act because they have already started doing so. It is important to get legal advice as soon as you think you are appointed because a lawyer can guide you on what to do, or conversely not to do, depending on whether you wish to accept or deny an executorship appointment.
4. SAFEGUARDING ASSETS IN AN ESTATE
As soon as possible, after the death, the deceased's assets should be both identified and safeguarded. Below are common things that are done in connection with safeguarding assets:
- Search for cash, securities, Jewellery, and other valuables and arrange for safekeeping.
- Lock up residence and advise police if it is not under proper supervision.
- Check the insurance of the deceased's assets (motor vehicle, house, furniture, etc.) for coverage, including expiry date, and notify the deceased's insurance agent or insurance company. A 30 day vacancy limit applies in most policies insuring residential property (the period may be shorter).
- Arrange for interim management of the deceased's business (if necessary).
- Arrange for collection or redirection of mail (if necessary).
- Check mortgage and agreements for sale and arrange for payment of instalments.
- Check leases and tenancies, arrange for payment of rent and give notice if necessary.
- Collect and bank outstanding cheques, e.g. pensions, dividends, interest and salary.
5. COLLECT ALL OF THE DECEASED’ FINANCIAL, TAX AND DEBT RECORDS
Collect all of the deceased’s financial, income tax and other information, including any debts. Once you have reviewed the information, prepare a rough balance sheet for the deceased as of the date of death. Make note of any assets that were owned jointly with others and the details of any life insurance policy or RRSP beneficiary designations. Make sure you check if the deceased had a safety deposit box at their bank where valuables may have been kept. Take this information to the lawyer so they can help you how different assets will be treated.
6. Collect and record information about the deceased and his family
Collect and record information about the deceased and his family, including:
- Death Certificate, Birth Certificate and Social Insurance Number.
- Full legal name and any other names used by the deceased.
- His/her date and place of birth.
- Deceased’s occupation and address as of the date of death.
- The full names, addresses, relationships of beneficiaries under Will and the immediate family members of the deceased, including spouse, ex-spouses, children, parents, and siblings. If any children or siblings have passed away, you will also need the full names and addresses of the children of that deceased person. If any of these relatives are minors, get birth dates and names of parents/guardians.
7. Apply for the Canada Pension Plan Death Benefit
This is an amount up to $2,500.00 which if the deceased is eligible for, is paid by CPP to the Estate for funeral expenses. The surviving spouse and children of the deceased should also apply for Canada Pension Plan Survivors’ Benefits. For more information contact the Income Security Programs of Human Resources Development Canada which can be found in the blue pages of your phone book under the Government of Canada - Pensions heading.
8. Determine whether or not the Will needs to be probated
Probating the Will is essentially having the courts review it and confirm that it is valid and binding. You do not have to obtain Probate if everything the deceased valuable assets were owned jointly with others (such as the family home being owned jointly with the spouse), the Estate is not very big (you can usually avoid Probate if the estate is worth less than $25,000) or if the only asset is a bank account which the Bank is willing to transfer without probate (this will depend on the banks internal rules - some banks will allow very large accounts to pass to a spouse without probating the Will).
9. Probate the Will if required
10. Administer the Estate
Administer the Estate in accordance with the deceased’s wishes outlined in the Will. You must determine and pay the deceased’s debts and taxes. The balance must be paid out to the beneficiaries or held in trust in accordance with the Will.
11. Prepare an accounting of the estate
Prepare an accounting of the estate when the job is complete (or periodically for long term trusts) and get it approved by the beneficiaries or the courts and obtain a Clearance Certificate from CRA for the estate.
Ready to apply for a probate or administration?
Fill out our Probate & Administration Intake Form to get started.