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Difference between revisions of "Your Duties As Executor"
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Your Duties As Executor (view source)
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, 23:16, 31 October 2018→Finally, pay your expenses and fees and distribute the estate to the beneficiaries
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==Finally, pay your expenses and fees and distribute the estate to the beneficiaries== | ==Finally, pay your expenses and fees and distribute the estate to the beneficiaries== | ||
Before distributing the assets under the will, submit a full accounting of the estate’s financial activities and obtain a release from each beneficiary. Your accounting will usually include a claim for reimbursement of expenses that you paid while serving as executor. You’ll have to decide if you also want to claim a fee for acting as executor. This fee can be up to 5% of the estate (under the Trustee Act) and is taxable income to you. If you want to claim a fee, include it in the accounting that you send to the beneficiaries. If the executor and beneficiaries can’t agree on a fair fee for the executor, the court will set it. | Before distributing the assets under the will, submit a full accounting of the estate’s financial activities and obtain a release from each beneficiary. Your accounting will usually include a claim for reimbursement of expenses that you paid while serving as executor. You’ll have to decide if you also want to claim a fee for acting as executor. This fee can be up to 5% of the estate (under the ''Trustee Act'') and is taxable income to you. If you want to claim a fee, include it in the accounting that you send to the beneficiaries. If the executor and beneficiaries can’t agree on a fair fee for the executor, the court will set it. | ||
Unless there is only one beneficiary, such as a spouse or child, you may not want to distribute any part of the estate to beneficiaries until you get the CRA clearance certificate. If the whole estate goes to a spouse, and you transfer most of the estate to them before you have the clearance certificate, the spouse will be responsible for any outstanding debts and taxes. The executor usually has a year (called the “executor’s year”) to complete the process, but it can take much longer, especially if the assets or liabilities are complicated, trusts are involved, or you cannot find a beneficiary. There is no deadline to distribute the estate. | Unless there is only one beneficiary, such as a spouse or child, you may not want to distribute any part of the estate to beneficiaries until you get the CRA clearance certificate. If the whole estate goes to a spouse, and you transfer most of the estate to them before you have the clearance certificate, the spouse will be responsible for any outstanding debts and taxes. The executor usually has a year (called the “executor’s year”) to complete the process, but it can take much longer, especially if the assets or liabilities are complicated, trusts are involved, or you cannot find a beneficiary. There is no deadline to distribute the estate. | ||
