An executor is important in making sure that the terms of your will are appropriately followed. An essential component of drafting a strong estate plan is selecting the right executor. If you would like legal guidance while navigating this process, at Duensing Law, our estate administration lawyer in Toronto can help you make decisions.
Managing the estate according to the terms of the will, relevant laws, and other regulations is the executor’s responsibility. This function must be done on time and in the beneficiaries’ best interests.
The administration process can take at least two years and frequently more, even for a relatively simple estate. From simple administrative tasks like rerouting mail and cancelling credit cards to more complicated duties like interpreting the will, valuing assets for tax and probate purposes, allocating inheritances, paying the executor, selling assets, and filing the deceased’s tax returns, the executor must manage a lot of work during this time.
Keeping records of every transaction about the estate is one of the executor’s duties. This means keeping track of all payments, earnings, and outlays. Executors must be ready to give these documents to beneficiaries or the court if necessary.
Being an executor requires an investment of time, energy, and responsibility. Executors must be trustworthy and well-organized enough to manage the estate while managing their own personal obligations. To protect the beneficiaries’ interests, they should also be aware of their limitations and seek expert assistance.
Key Factors to Consider When Selecting an Executor
Trustworthiness: Select a person you fully trust to act honestly and responsibly. By putting the interests of the beneficiaries first and avoiding conflicts of interest.
Willingness and Ability: Verify if the person you are considering is prepared to accept the position. Being an executor has financial and legal obligations. They can be held responsible for losses if they don’t carry out their responsibilities. It’s important to pick someone willing to act ethically and seek expert guidance when needed.
Longevity and Proximity: An executor who lives in your province and is likely to outlive you is ideal. An executor needs to be at least eighteen years old. Selecting someone nearby streamlines the administration procedure because executors who live overseas or out of province may encounter obstacles like the requirement to post a bond or trouble creating a bank account. Additionally, the estate may face additional taxes if a U.S. citizen is appointed.
Impartiality: Choosing someone who can act impartially is important, especially if they have close ties to beneficiaries or can gain from the estate. To avoid possible conflicts of interest, do not choose a business partner as your executor if your estate has business interests.
Familiarity with Your Wishes: When unexpected events occur, an executor aware of your values and preferences can make choices that align with your wishes. Choosing someone who understands the dynamics of your family can also be helpful when handling circumstances and settling disputes.
Knowledge and Expertise: Consider hiring a professional, such as a lawyer, accountant, or trust company, if your estate is complicated or you would rather not bother friends or relatives. Experts can provide helpful guidance. Find out from your lawyer what requirements your executor would want.
Backup Executor: Choose a backup executor if your first option cannot do it. Without a backup plan, the court can choose an administrator—someone you might not have selected. The Public Guardian and Trustee may be asked to manage the estate if no qualified individual is available.
Periodic Review: Situations might change over time. Make sure your executor selection is still acceptable by reviewing it regularly.
Designating two executors may be favourable in some situations. The dependability of a loved one and the knowledge of a professional are combined when a professional executor is paired with a dependable family member. This agreement can guarantee that the estate is administered following your wishes and help prevent errors. Nonetheless, it’s important to include clauses in your will that address how disputes will be settled. Appointing several executors with close ties should be avoided as this can cause delays and conflict.
Consulting an estate administration lawyer in Toronto can provide guidance, particularly if your estate is complicated or you’re unsure who to name as your executor. Lawyers with expertise in estates and wills can assist you:
- Recognize the legal requirements for selecting an executor.
- Evaluate potential candidates.
- Reduce the likelihood of disputes amongst beneficiaries.
- Make the estate administration process as efficient as possible.
Although it is not required, expert counsel can assist in guaranteeing that your estate is handled efficiently and in line with your desires.
Executor Compensation
Executors are entitled to payment for their services, even if certain family members may consent without payment. Beneficiaries must approve compensation. A method for resolving disagreements about compensation may be included in your will.
If more than one executor is selected, they will split the costs. Executor fees are subject to income taxation. Lawyers, accountants, and trust businesses are examples of professional executors who will demand payment and might ask that a compensation agreement be included in the will.
You can assist in guaranteeing that your estate is managed effectively and following your wishes by carefully evaluating the duties and credentials of your executor and, if necessary, obtaining expert guidance. Contact our estate administration lawyer in Toronto. By working with us, you can reduce stress, minimize disputes, and ensure your estate is handled efficiently.
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