November 2008 Article
The Executor of your Estate – who, when, and why …
Article by Barbara
Bell
What
would you like us to do with the body, madam?” the nursing
aid asked quietly. “Oh! I don’t know – what do
you suggest?” My mother was gone. It was 2:00 in the morning.
I was alone and in shock, but I needed to decide where to send
her body! As her executor I quickly learned that this decision
was the first of many I would be required to make.
Being
an executor of someone’s estate is a significant responsibility.
As well as taking care of the funeral arrangements, the job includes:
- Identifying, collecting, protecting, managing and realizing
all assets of the estate;
- Settling the deceased’s affairs, including paying
all liabilities, filing income and estate tax returns and paying
any income taxes due; and
- Distributing the estate to the beneficiaries entitled
under the will.
This
is a responsibility that most of us don’t think about until we
have the position.
Learn
more about your role as executor here.
WHO...
If
you want your final wishes to be followed with undue stress on
your family and beneficiaries, I recommend you consider some
of these aspects when choosing an executor:
- someone you trust with your financial affairs (have had
some experience with this person and you believe them to be
honest);
- someone who has an understanding of your wishes (you have
discussed your bequests with them);
- someone who works well with people and under stress (good
people skills, but can remain objective);
- someone who has an appropriate skill set (maybe a lawyer,
an accountant, a business person, someone who can handle money
easily); and, naturally,
- someone who is younger and/or healthier than you (expect
they will outlive you and be coherent when you die).
Note
that beneficiaries can also be executors. If you choose a family
member, consider telling all of the intimate family and giving
your reasons for your choice. Executors can be changed at any
time during your life, however ensure that any changes form part
of your last will.
WHEN …
Upon
death, the executor, identified in the will, becomes responsible
for, and the custodian of, all the estate assets. There may have
been a power of attorney in place for the deceased, but this
ceases immediately at moment of death. The executor continues
to be responsible until he/she obtains a clearance certificate
from Canada Revenue Agency and distributes the estate to the
beneficiaries.
WHY …
If
you do not have a will, name an executor, or your executor(s)
is unwilling or unable to act in this capacity the court will
appoint an official administrator. In this situation there is
a list of people who have a right to administer the estate. In
priority the first person is a “qualified” spouse,
then the children, parents, siblings, nieces and nephews and
finally next of kin other than the above. If there are no next
of kin willing and able to handle this responsibility, the Public
Guardian and Trustee will be appointed. This appointment is not
necessarily a bad thing but it generally complicates things and
is it what you want?
Choosing
an Executor for your estate is an important decision. I recommend
you think seriously about who would be best to make the final
distribution of one of the representations of what your life
was about.
DISCLAIMER:
This newsletter article is for information and educational purposes
only. The information contained in this report has been compiled
from sources I believe to be reliable.
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