Difference between revisions of "Ten Steps to Being an Executor"

Being the [[Being Asked to Be an Executor|executor of someone's estate]] can be time-consuming and intimidating. This section outlines the main steps involved.  

[[File:beinganexecutor-contents2.png|thumb|275px|right| link=| <span style="font-size:50%;">Image via www.flickr.com</span>]]On a person’s death, the executor’s responsibilities include:

* safeguarding the property left behind, such as by notifying the house insurance company if the house is now unoccupied,  

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Before you do anything as executor, you should first decide if you are prepared to take on the responsibility. You don’t have to. However, if you start dealing with any assets of the estate, you are legally bound to continue until you get discharged. Examples of dealing with an asset include paying debts or changing the insurance on a house. You are said to have '''intermeddled''' in the estate, and you can only be relieved of being the executor by a court order discharging you.  

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As executor of someone’s estate, your first step is to locate the original will. The will may have instructions about the will-maker’s wishes for organ donation, burial or cremation, and their funeral or memorial service. You need the original will if you are required to probate the will.  

The original will may be in the will-maker’s home, in a safety deposit box, or at the office of the lawyer or notary public who drafted the will.  

If the will is in the safety deposit box and names you as executor, the bank will let you take the will. With a bank representative, you must make a list of the contents of the box and leave the  list in the box before you remove any contents. You will need a copy of this list if you are required to probate the will.

You can search the [http://www2.gov.bc.ca/gov/content/life-events/death-and-bereavement/wills-registry Wills Registry] by submitting a completed [http://www2.gov.bc.ca/assets/gov/health/forms/vital-statistics/vsa532_fill.pdf application form] and fee to the Vital Statistics Agency. If you are not a lawyer or notary public, you must provide a copy of the death certificate with your search application. See the [http://www.vs.gov.bc.ca Vital Statistics Agency website] for the application form, the current fee, and instructions. Their contact information is:   

You will be provided with a Certificate of Wills Search. You will need a copy of this certificate if you are required to probate the will.   

The death certificate may be obtained by the funeral services provider, or you can order a death certificate from the Vital Statistics Agency. See the Vital Statistics Agency website at [http://www.vs.gov.bc.ca www.vs.gov.bc.ca] for the [http://www2.gov.bc.ca/assets/gov/health/forms/vital-statistics/vsa430d_fill.pdf application form], the current fee, and instructions. You may want to order more than one death certificate so you can deal with more than one institution at a time.

Once you are confident you have the original last will of the will-maker, make sure that it is valid. There are several ways in which a will might be invalid or might need to be rectified by a court:

It used to be that a person who witnessed a will could not also be a beneficiary. But now, a witness may be able to inherit under a will. The witness has to apply to court and show that the will-maker '''intended''' to make the gift even though the beneficiary was a witness to the will. If the court isn’t satisfied, the gift to the witness is void. Either way, the remainder of the will is not affected.

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As the executor it is your responsibility to protect the assets of the deceased. You should make sure the assets are safe and properly insured. For example:

* Check on the insurance of the home and any vehicles. Check the expiry dates of the insurance. If the deceased lived alone, check the vacancy provisions to ensure that the coverage continues (most home insurance is cancelled automatically if the home is vacant for more than 30 days).  

Other steps you should take to protect the assets include:

* Notify financial institutions where the deceased held accounts.  

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The executor is responsible for the funeral arrangements and paying the funeral expenses. There are many decisions to make when arranging the funeral, usually in a very short time period. For example:

Often people leave instructions about what they want, either in their will or a letter. When possible, arrangements should be in accordance with the will-maker’s wishes. You’ll also want to consider the wishes of the relatives.  

Where the will sets out the will-maker’s wishes for burial or cremation, those wishes are binding on the executor, unless they are unreasonable or impracticable or cause hardship. If as the executor you are unwilling or unable to give instructions on the question of burial or cremation, the spouse may.

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Once the funeral is over, family members and beneficiaries are often anxious to know about the estate, what happens next, and when they will receive their inheritance.

* discuss how the personal assets will be divided.

Making an inventory of the estate is one of your most significant tasks as executor. The inventory lists the estate assets and liabilities, valued as at the date of death.  

* all other claims as of the date of death.  

As the executor, you could be personally liable if you don’t pay the deceased’s debts, including any taxes owed, before you distribute the estate.  

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As the executor, you may need to '''probate''' the will. In the probate process, you submit special forms and the will to court;  [[Probating the Will|see below for details]]. If everything is in order, the court issues a grant of probate. This document allows financial institutions and other organizations such as the Land Title Office to rely on the will as being the last will made by the will-maker.

If the estate assets are worth more than $25,000, probate will usually be required. It is up to the institutions who hold the assets whether they will transfer them to you without probate. Check with the institutions that hold the deceased’s assets to find out what they require.

If probate is required, once you have the grant of probate, you will be able to transfer the estate assets into your name as executor. With the assets, you can then settle the deceased’s debts and any expenses that you incur in the course of administering the estate.  

After the income tax is reported, assessed and paid, apply for a [http://www.cra-arc.gc.ca/tx/ndvdls/lf-vnts/dth/clrnc-eng.html Clearance Certificate]. For your own protection, you should have this certificate before you begin to distribute the estate. For more information, see the Canada Revenue Agency publication [http://www.cra-arc.gc.ca/E/pub/tg/t4011/ ''Preparing Returns for Deceased Persons''], available at [http://www.cra-arc.gc.ca www.cra-arc.gc.ca] or by calling 1-800-959-8281.  

Before you distribute the estate among the beneficiaries, you must give them an accounting of your administration of the estate and they must agree with it.  

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Once you ensure that all debts, expenses and taxes have been paid, that all claims against the estate have been satisfied, and that your accounts have been approved by the beneficiaries or the court, you can distribute the remainder of the estate.