Often- times people think of being appointed as an Executor of an estate to be an honour – even more frequently now with the legislative changes in Ontario estate laws, it has become more of a liability.

Recently we hosted an intimate group of our clients at our new Markham office with our partners, Adam Elliott of Dynamic funds and Andrew Felker, partner at WalkerHead law firm for an evening to discuss the Role of the Executor.  Our session was very interactive and informative with many personal experiences shared regarding acting as an Executor or appointing an Executor.

The three of us are very passionate about the role estate planning plays in the foundation of financial planning.  We strongly encourage our clients to have the conversations with their family members.  These can be difficult conversations and we are able to assist our clients in making these conversations a little bit easier to have.

Keep in mind it is important to ask the person you are considering appointing as an Executor if they are interested in acting in that capacity when you pass away.  As the complexity and liability for the role of the Executor has changed over the years more and more people are saying no to the opportunity to be an Executor.  Frequently now we are seeing the appointment of corporate Executors, who have the expertise and the time to carry out the many demands incurred in this role.  This service could typically cost a 5% fee (based upon the value of your estate), however as Andrew Felker so aptly put it

“I’d rather spend 5% to know the other 95% is being completed according to my wishes, properly and in a timely manner.”

The role of the Executor can be very intricate and detail oriented depending upon the degree of complexity of the estate itself.  Now that an Executor/estate can be audited up to four years after the person has passed away, it is very important for the Executor to be very, very organized in documenting everything that transpires regarding the estate.

We cannot stress enough the benefits of open communication, detailed documentation and organization of all your financial affairs from real estate, to investment assets, location of your estate planning documents to having your day to day banking outlined for your Executor.  The more detailed your affairs are while you are alive, the easier it will be for the person you have appointed as Executor when you are gone.

This is a popular seminar that we have repeated before.  We intend to repeat it again in the future.  Please don’t hesitate to call any of the 3 of us should you have any questions or wish to attend a future seminar.

Deb, Gary & Kelly 

P.S. To avoid the pitfalls have your Will completed by a professional and appoint the Executor of your choice who has the trustworthiness, willingness and ability to perform his/her duties as Executor well.