Duties of an executor | GTAMotorcycle.com

Duties of an executor

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nobbie48

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A friend wants me to be the executor of his estate. He's not on his deathbed so nothing urgent but other than seeing the right stuff goes to the right people what should I expect?

How does one make sure there are no hidden bank accounts etc?

I plan to post a sign, "Looters will be shot" because I know his family.
 
Asked a buddy to be my executor. They are there to carry out your wishes as stipulated in your will. Hopefully it's all spelled out in the will, that way, they just have to do the leg work to close out accounts etc, and give stuff to the right people. Be the signing authority, etc.
 
Went through this, my sister and I were joint executors for my dad. To save a lot of aggravation, while the person is still around:
- Get a list of all relevant financial institutions. All bank accounts, investment accounts, where is the RRSP held, where's the mortgage, where's the credit card, where's the car loan.
- Know where important documents are kept - preferably in a safety deposit box - but know where that safety deposit box is. The last couple years of tax returns are good to have. Obviously you need to know where the will is.
- If they have a family lawyer, find out who it is.
- If they have a family financial adviser, find out who it is.
- Write all this down! If the person in question makes it another 30 years, you'll need that.
 
Brian P said:
Went through this, my sister and I were joint executors for my dad. To save a lot of aggravation, while the person is still around:
- Get a list of all relevant financial institutions. All bank accounts, investment accounts, where is the RRSP held, where's the mortgage, where's the credit card, where's the car loan.
- Know where important documents are kept - preferably in a safety deposit box - but know where that safety deposit box is. The last couple years of tax returns are good to have. Obviously you need to know where the will is.
- If they have a family lawyer, find out who it is.
- If they have a family financial adviser, find out who it is.
- Write all this down! If the person in question makes it another 30 years, you'll need that.
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^--- This, with emphasis on a good lawyer versed in probate and estate law. Mine was a junior partner in my parents' lawyer's firm. Found bank accounts of my father's my mother must have had no idea about. Let's just say I smiled and said thanks when I cut him his cheque.
 
Everyone above has given the right info.

You are basically the one that will close everything out with banks, ins., the government, CRA, credit card companies, utilities etc etc... when the time comes.

Make sure there is a will and that you are stated clearly to be the executor otherwise it's a pain in the *** to go through the process to be named one after the fact.
 
As well as all the paperwork and filing, you deal with the funeral arrangements. Hopefully its in the WILL. Please Lord if anyone asks you to be an executor , make sure they have a will , and even better you have a copy in your files.

You also deal with dispersment of assests, selling the home if there is one, cars , whatever. Getting rid of personal effects and furniture,

The people at the funeral home are usually very helpful with process, and as mentioned already a lawyer that does final estate work, they will walk you through the process.

You also get to bill the estate for a percentage, based on costs incurred in settling the estate.


My personal advice, whether you are family or a friend, stick to the wishes in the will and be clear with anyone that confronts you on the process you are following the guidelines set out. Don't be surprised by the number of "family" that pop up saying uncle Fred always said XXX was to be mine when he went, with no paperwork to support the claim.
 
crankcall said:
My personal advice, whether you are family or a friend, stick to the wishes in the will and be clear with anyone that confronts you on the process you are following the guidelines set out. Don't be surprised by the number of "family" that pop up saying uncle Fred always said XXX was to be mine when he went, with no paperwork to support the claim.
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I know his family and saw what he went through when his mom died. Thousands of dollars of heirlooms disappeared as visitors came and went. Hence the "Looters will be shot" comment.

One problem is that he rents few rooms out in his home and if things disappear proving anything will be next to impossible. People are like vultures when someone dies. It's amazing how they can ignore the fact that it's theft.

As executor I'm hoping I can get the tenants to vacate on short notice and maybe I'll sleep on the couch until things are secure and locks changed. Fortunately he has a large garage which can be used as a locker.

On the bright side he's younger than me so chances are this will come to nothing. He is in the process of getting a will and the lawyer is good.
 
If he's in getting a will , more important make sure he assigns Power of Attorney , giving it to the executor is the smart way. If he ever has a medical issue, needed to go into long term care, or just ends up hospitalized, somebody that can step in and assist with banking, and care decisions is very important, possibly more important to him than what happens after death.

I cant believe the number of people that "havent gotten around" to a will , or assigned PoA. Get it done people.

You wouldn't go on holiday and leave your front door open with a note on the step listing all your PIN numbers and your wallet in the mailbox. Why would you go through life without a will?
 
crankcall said:
If he's in getting a will , more important make sure he assigns Power of Attorney , giving it to the executor is the smart way.
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More good advice. If there is no PoA the province appoints one of their bureaucrats and NOTHING get's done with any hint of expediency. My mother was smart about it (probably with the advice of her lawyer). We sat down and she went over everything. PoA in my name, co-executor with my sister, where the documents were, access to them, and what she wanted done. The gong show that ensued when she got sick re: me having PoA with my older, more responsible (her description) sister is another story.
 
I'm going to guess anyone that has ever had an executor role, and PoA , or even had to assist with a settlement because your the friend with a pickup truck has some stories.

Funerals and weddings bring out the best in people........
 
I have been an executor twice and have one more coming up at some point (soon?). It's a lot of work, that I can tell you that much. The other thing is, it's always very different in terms of the stuff you'll have to deal with. People have different complications in their lives and different assets that need to be dealt with and weird stipulations in their wills and you as the executor HAVE to comply fully with the deceased persons wishes. It's never boring - that's for sure! I kind of enjoyed it both times in a bizarre sort of way. Both my relatives had multiple years of back-taxes to be addressed. That's what takes the longest; dealing with the CRA if there's a lot of tax stuff to be cleared up.

The biggest negative is that you (the executor/executrix) are fully liable if things are not completed properly before the final distribution of $$ is made to the beneficiaries. In other words, they come after YOU and your wallet if there's no money left in the Estate and somebody is owed something by the deceased person and hasn't been paid because you didn't uncover it in wrapping up the Estate.

They say it takes a year to wrap up an average estate? The one's I worked on took between 2 and 3 years to complete fully. Mind you, there were many years of back tax returns to be dealt with in both cases so I'm sure that alone dragged things out by at least a year.

Before you accept a request to be an executor, make sure you not only have a very strong connection to that person but that you also have the ability to be fair, detailed and patient in doing that kind of work. It's not something that can be rushed.
 
nobbie48 said:
...in his home...
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Real estate included in the assets - therefore -
You'll need to file the will in probate court and pay the probate fee.
You'll need a lawyer (and to pay the lawyer's fees) to file probate and to handle the real estate sale/transfer.
You'll need to open an estate account at the bank to pay the above and receive the proceeds.
I'd strongly recommend a chartered accountant for the tax return.
If relatives involved, some people are just AHs and will try to get whatever they can out of the situation and will be complaining about you spending estate $ on the above.
 
Green Meenie said:
They say it takes a year to wrap up an average estate?
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My mother's was done in 4 months. All her ducks were in a row and I had very good counsel through a highly regarded firm and zero probate/will challenges, though. YRMV.
 
Green Meenie said:
I have been an executor twice and have one more coming up at some point (soon?). It's a lot of work, that I can tell you that much. The other thing is, it's always very different in terms of the stuff you'll have to deal with. People have different complications in their lives and different assets that need to be dealt with and weird stipulations in their wills and you as the executor HAVE to comply fully with the deceased persons wishes. It's never boring - that's for sure! I kind of enjoyed it both times in a bizarre sort of way. Both my relatives had multiple years of back-taxes to be addressed. That's what takes the longest; dealing with the CRA if there's a lot of tax stuff to be cleared up.

The biggest negative is that you (the executor/executrix) are fully liable if things are not completed properly before the final distribution of $$ is made to the beneficiaries. In other words, they come after YOU and your wallet if there's no money left in the Estate and somebody is owed something by the deceased person and hasn't been paid because you didn't uncover it in wrapping up the Estate.

They say it takes a year to wrap up an average estate? The one's I worked on took between 2 and 3 years to complete fully. Mind you, there were many years of back tax returns to be dealt with in both cases so I'm sure that alone dragged things out by at least a year.

Before you accept a request to be an executor, make sure you not only have a very strong connection to that person but that you also have the ability to be fair, detailed and patient in doing that kind of work. It's not something that can be rushed.
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Good catch re the liability. One can get insurance but I'll have to find out how that works. I do know an executor out of the commonwealth has to have it and it is hard to get and not cheap.
 
Thats where you Lawyer and his paralegals will really help out.
The three big holdups are #1 CRA, and if they hold RIFF's and GICs and other investment certificates that haven't matured and need to be cashed out, and the final filing for Revenue Canada where they want all investments cashed so they get thier piece.

Good luck if they hold foriegn investment like a house in Florida, now your paying IRS and doing a US tax return and paying FLA state tax. That will cost 2K in forms just to file.

It can take 1 year to get everything sorted, lots of cash can be released prior to final settlement but only if your sure what the final bill will be.
 
In my experience, the lawyer (paid from estate funds) was worth it. Did the probate filing, the real estate sale, and also created the releases that every beneficiary had to sign-off on before the major part of the distribution. I held 10% back until the CRA release was issued. I possibly could have managed the final tax return without the accountant but having a pro do it gave me comfort with respect to possible personal liability due to errors.
 
As executor you're entitled to receive a portion if the estate... In Ontario I believe it's 5%.
 
Riceburner said:
That could potentially be a big chunk of change.
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True, but in many cases I know of it was $0. If you live for long after you go to a retirement/nursing home, you get bled dry quite quickly. It would be nice if their was an easier process when there was nothing of value to distribute (eg. file an affidavit that there are no assets and that's it).

I know one estate that I have been asked to be executor on has transferred a decent chunk of change into a charitable trust. That is something that I will have to administer with no compensation (but I am happy too as it won't be that much work and carrying on peoples wishes is important).

In general, I try to encourage people to distribute and/or liquidate what they can while alive to simplify the process. I have been clear with the people that may leave me something that I am happy if they leave me nothing, but please don't leave me half of a non-cash asset as the potential for problems is way too high.
 
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Your better natured than me, I'm not administering a charitable trust without compensation, there's a provision for it, enough trouble looking after my own money.

My advice for those that want to leave someone something. PUT IT ON PAPER. dont for a second think your kids will 'do the right thing' and hand some cash down the pipe to the grandkids.

And unless your a real prick don't leave 49 nieces and nephews $100.00 ea. , what a PITA that is.

I've also been amazed that $372.00 , will drive someone as bonkers as $3,720,000.00 , never underestimate greed.
 
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