An Executor’s Job: What an Executor of a Will Should Expect

Before naming someone as executor in a will, the will-writer usually asks the person if they’re comfortable with the responsibility. Often, without fully understanding the legal duties and obligations associated with being an executor, the person accepts. However, executors often make the mistake of accepting executorship just to please the testator. The size and structure of an estate may task executors with a long and complicated estate administration process. Therefore, executors need to understand what they’re agreeing to and ensure they can handle all the expected tasks.

Duties, Tasks and Responsibilities

An executor’s duties cover all aspects of estate administration. They are responsible from the testator’s death until the distribution of all assets from the estate to its beneficiaries. Planning the testator’s funeral is often one of the first tasks an executor faces.

Generally, the executor must have the original copy of the will – there are scenarios which may arise where the original copy is not required and a copy of the original is fine. The executor must present the will to the probate courts for validation and execution. This is only necessary if the will requires probate, which is most often the case.

Next, the executor can begin to administer the estate, preparing it for distribution to the beneficiaries. The testator must repay any debts owed even after their death. The executor, using the estate’s funds, is responsible for paying these debts, including taxes, on behalf of the estate. Executors are responsible for ensuring that they have not left any of the testator’s debts unpaid. This can even include putting adverts in the newspaper to notify any potential debtors of the testator’s death.

Passing of Accounts

It’s crucial that the executor is careful to account for all transactions involved with the estate, tracking anything that goes into and out of the estate. When the estate is ready for distribution to the beneficiaries, the executor must detail all the transactions made on behalf of the estate in an account. The accuracy and detail of these records is crucial in the instance that a beneficiary of the estate raises a claim for passing of accounts. To help make this process easier for executors, it’s recommended to open an estate bank account to keep all the estate’s funds in one place.

After all the debts and assets of the estate have been accounted for, the executor can then distribute the estate assets according to the will.

In most cases, there can be excess assets of minimal value left behind with no one named in the will to receive them. The executor is responsible for disposing of these assets themselves. Once the estate has no remaining assets, the executor has finished their job.

Remember, this list of executor duties isn’t exhaustive – each estate administration process is unique and requires attention to various debts and assets. This list covers the most common and important duties that an executor will likely be responsible for.

Risks of Personal Liability

Anything that the testator did or failed to do while they were alive which resulted in damages will not make executors personally liable. An executor becomes personally liable only if they do something themselves that warrants liability. For example, if the executor fails to give adequate notice of the testator’s death to the debtors of the estate and then distributes the estate, they can become personally liable.

In this case, the beneficiaries of the estate would not be held responsible for repaying such debts after they’ve received their portion of the estate, as they cannot be held liable for the executor’s negligent administration. The court could order the executor to repay these debts from their own pocket, which is why keeping an accurate and detailed account of the estate’s assets and debts is essential for executors. The executor can also become personally liable if they abuse their power and engage in fraudulent behaviour.

Is It Worth It?

Everyone knows that an executor bears numerous responsibilities and must devote a significant amount of time and energy to ensure the proper administration of an estate. Executors can feel pressured by time as they usually have one year from the testator’s death to finish the administration and distribute the assets to the beneficiaries – known as the executor’s year. While there’s no strict deadline, beneficiaries can start urging the executor with court orders to speed up the process if the administration extends beyond the executor’s year and causes undue delay.

When deciding whether to accept executorship, understand that the law allows executors to receive compensation for their efforts through executor’s fees. The Trustee Act entitles an executor to a maximum of 5 percent of the gross aggregate value of the estate, unless the will specifies otherwise. In most cases, 5 percent is a high figure for the executor’s compensation, and fees are more commonly between 2 percent and 3 percent of the estate’s value.

Other Details to Consider

When contemplating accepting executorship, it is also important to consider the proximity with which you live to the location of the estate’s assets. It can be quite difficult to administer an estate when you are living in another province or country. An executor usually cannot complete their tasks during a week-long trip to the location of the assets. They will need to stay in the same city where the majority of the assets are for an extended period.

Taking on the role of executor for a will can be a significant burden. However, if you do it correctly, you will receive rewards for your efforts. The will always names an executor for the estate. If you decline the position, the courts will assign someone else. However, this could lead to the appointment of an incapable executor, which could cause extensive and potentially expensive delays in the administration process.

If you are an executor and are unsure how to begin the estate administration process, contact an experienced estate lawyer today. We can help guide you through the tasks of being an executor, and can help ensure that you are not held personally liable for any issues related to the administration of the estate.

Have a question about this topic or a different legal topic? Contact us for a free consultation. Reach us via phone at 250-888-0002, or via email at info@leaguelaw.com.