Becoming an Executor
What You Should Know Before Saying Yes
You’ve been asked to be an executor of a will. It’s a big honour, but also a big responsibility.
What should you know before saying yes?
HOW COMPLICATED IS THEIR ESTATE?
The role can be quite involved. If you want to become an executor, make sure you understand the complexity of the estate - does the person own multiple properties? Significant investments? Does the person own a business? Do they have assets in different countries?
CAN YOU COMMIT THE TIME?
Your role as Executor could last over several years. While most estates can be settled within a year, if you are dealing with an estate that establishes trusts or one with complex assets, you could be signing on for a longer time than you think.
You can delegate some tasks to other professionals (accountants, lawyers) when specific knowledge is required, but as Executor, you are expected to be fulfilling most of the responsibilities yourself.
ARE YOU COMFORTABLE WITH BUSINESS, INVESTMENT AND TAX MATTERS?
As Executor, you may be needed to make investments on behalf of the estate, deal with income taxes, and liquidate various assets. You'll need to rely on your experience and ability to investigate solutions.
As we explained above, you can bring in experts to assist and advise you on various aspects of the estate settlement, but you are the person who will ultimately be responsible for the financial decisions.
CAN YOU PLAY AN IMPARTIAL ROLE WITH THE BENEFICIARIES?
Think about your ability to deal with the various beneficiaries and family members. You’ll be working with them during a highly emotional time.
You may be asked to deal with family drama and figure out how to balance financial matters to prevent conflict and hostility.
WHAT DO YOU DO NEXT?
If you’ve accepted the role, what should you do to make sure the role starts off smoothly?
We cover the role of an executor in a separate article, but at the very least, make sure you:
Review the will with the person who has asked you to be an executor. Make sure you understand their wishes.
Know where the will is located. If you can keep a copy, that’s even better.
Find out what, if any, funeral arrangements have been made
Ask for the names and contact information for any financial advisors and, if possible, get introduced to them.
The role of an executor is an important one and being asked to take on this responsibility shows that a great deal of trust is being placed in you. The role is definitely manageable and most times, very straightforward, but being aware of potential complexities and challenges will help you make an informed decision.
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The information provided is general in nature and may not be relied upon nor considered to be the rendering of tax, legal, accounting or professional advice. Readers should consult with their own accountants, lawyers and/or other professionals for advice on their specific circumstances before taking any action. The information contained herein is from sources believed to be reliable, but accuracy cannot be guaranteed.