Speaker, August 22.jpg) On Tuesday, we hosted Stacey Maurier, pictured, of the Estate Connection law firm, to talk to us about how to be an excellent executor. She gave out handbooks that presented sixty five ways to be a good executor, that included timelines, checklists, many different types of handy forms, and samples of common types of correspondence. She then went on to talk about some of the things that we can do to make our executor’s life a little easier. One of the things that we can do now is to pre-arrange our funeral, and let our families know what we would like. It will save our families a lot of stress, time and money once the time comes. If you have added a family member’s name to your bank account or property title, those assets, as present on your date of death, are still considered part of your estate and must be accounted for and distributed as stated in the will. If you have made loans to family members prior to your death they now become due and must be paid into the estate. Make sure you have a will, and store the original in a safe place. Let your family know where it is stored. Probating a copy of a will, instead of the original, can be done, but it could be time consuming and costly. The will is the guiding principle for everything an executor does, but does not cover everything. There are also fiduciary rules, Canadian common law and trusteeship rules that must be considered. An executor must be fair and equitable to all concerned, and the will must be followed to the letter. Changes can not be made to what is laid out in the will, without making a court application. The executor should keep detailed records of everything they do and decisions they make in relation to the estate and should keep family members/beneficiaries up to date with monthly written updates. Setting up an email account strictly for this purpose is a good way to keep track of all correspondence. Ask everyone to use this email account for all correspondence regarding the estate. Keep a small notebook in which you write everything done, in chronological order. Records should be detailed and be accompanied by receipts and any other corroborating paperwork. Another way to keep a record is to photograph everything, receipts, checks etc. The court can require an accounting of every detail at any time. They have a lot of power to set time limits for the sale of assets, set penalties on the executor, or even replace an executor. The executor may make reasonable use of funds. If they are not good at accounting, they can hire a book keeper. If the home needs major cleaning prior to sale, they can hire a cleaning company. If there are family disputes that arise, that they feel they do not have the skills to handle, they can hire an impartial professional to act as executor in their place. The executor is responsible for keeping the assets of the deceased safe, and so should change locks on doors, secure vehicles and other property, secure all bank accounts and safe deposit boxes. This will prevent people from stealing items. Taking photos of the house, contents and other property immediately is also a good idea. All of the deceased’s mail should be directed to the executor’s home. Having a valuation done by a professional on the contents of the house should also be done as these values will be needed as part of the probate application. Advertising for creditors is also worthwhile, even though the cost may seem high. It can save nasty surprises later. If you let people into the house, you should always be present. The executor is responsible for paying the debts of the deceased, but there are laws that govern the payment of debts if they exceed the assets, and also that govern the payment of credit card bills. Any utility bills and income taxes due should be paid promptly, other creditors bills can wait. You must follow the law. Most estates should be able to be wrapped up within a year of death, with the exception of receipt of the tax clearance certificate from Revenue Canada. Stacy had a lot of small anecdotes that she used that made the talk quite interesting and helped to clarify how issues can arise. An executor’s job is not easy, and dealing with a lot of different people can be stressful, but if we follow her advice, it should be a lot easer. |
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