Best Practices for Executors

Ethics

Being named an executor means you’ve been put in the highest position of trust by a loved one. Your role, as a fiduciary, carries serious responsibility and risk. To avoid personal liability, ensure that you are always:

Follow instructions in the Will, seeking qualified legal advice as necessary.
Put the interests of the beneficiaries first.
Act prudently in all dealings with the estate.
Keep the affairs of the estate strictly confidential.
Avoid breach of trust with the deceased and the beneficiaries.
Treat the beneficiaries with an even hand and always remain impartial.
Ensure no conflict of interest between your own affairs and the affairs of the estate.
Receive fair and reasonable compensation for your work, without unduly profiting.
Be prepared to provide a formal accounting of the estate at any time.

Good Governance

Staying organized and on track will help you get the job done much faster, with fewer complications. Manage the estate using these principles of good governance:

Ask what could possibly go wrong and use common sense to prevent problems.
Get informed about what needs to be done, identify priorities and tackle those first.
Stay organized. Don’t put yourself at risk by letting things to fall through the cracks.
Create a realistic schedule: this is a marathon, not a sprint.
Follow up on a timely basis. Leave yourself notes, messages, whatever it takes.
Work sequentially. Better to follow the map than be all over the map.
Document, document, document with detailed notes, receipts, and professional opinions.
Always stay current on the estate assets and debts. Pay attention or pay out of your own pocket.
Keep beneficiaries informed of your progress. This is the absolute best way to avoid the misery of mistrust and family friction.
Obtain qualified professional advice to make good decisions. No one expects you to be an expert on everything or take risks and be wrong.
Use caution in making distributions before debts are paid and set aside a generous reserve for final taxes. Beneficiaries who have received their money will be loath to return it. If the estate is fully distributed before the final tax bill is paid, it may come out of your pocket.
Every time you work on the estate, log your time, out of pocket expenses and collect executor fees; you aren’t expected to work for free.
Don’t let your own affairs and your family fall through the cracks while you look after someone else’s.

Top 10 To Do’s

Deal with the remains of the deceased, ensure dependents are properly cared for and notify family, friends, and others of the death.
Follow Executor’s Friend’s Best Practices throughout the entire process to protect yourself from liability.
Search the deceased’s personal papers or safe deposit box for funeral instructions, an obituary and the Will.
Develop a clear understanding of your role and responsibilities by consulting the Executor’s Friend Library.
Secure the deceased’s principal residence, collecting important papers and securing valuables such as cash, credit cards, securities, jewelry, and collectibles.
Review the Will (or court order, if there is no valid Will), notify co-executors and beneficiaries.
Get organized to apply for probate as soon as possible. If the estate is very simple or small, find out if there’s an abbreviated probate process available in your jurisdiction to save a lot of time.
Obtain at least 5 original death certificates from the funeral home.
Apply for government death benefits and, if possible, pay immediate bills such as utilities, funeral expenses, and taxes through the deceased’s bank account.
Organize yourself to do the job right: keep good records and notes, stay on track and work to a schedule, tracking your time and out of pocket expenses.

Top 10 NOT To Do’s:

Not taking your responsibility seriously or not using the Executor’s Friend Estate Executor Toolkit. We can’t make your job faster and easier if you don’t take advantage of all that we offer.
Not having a complete understanding, the Will (or court order if there is no Will) and your fiduciary responsibilities.
Getting involved in any aspect of the estate if there is a remote chance that you will not be able to complete the job and may have to renounce.
Not keeping the beneficiaries always informed of your progress.
Not having complete information on the estate assets and debts, not staying on top of them with the Executor’s Friend Accounting and Distribution tools.
Not seeking professional advice when needed or not clearly understanding the advice.
Making final distributions before all debts and final taxes are paid.
Not keeping complete records of estate expenses and your time.
Procrastinating and falling behind, making your job much longer and more painful.
Getting embroiled in family friction.

Choosing an Executor

There are several factors to consider when choosing an executor:

Primary Considerations: The executor role requires an ability to organize, to act responsibly, to follow schedules, and to understand financial matters (at least to a certain degree). Of course, an executor need not be an expert in all things, or even fulfill all responsibilities personally. Most executors end up hiring various professionals to help with certain aspects of the estate, including lawyers, accountants, real estate agents, cleaning services, and so forth. The important thing is that the executor be able to manage the process successfully, and to do so in a fair and ethical manner.
Health: You should also consider the executor's health (and expected future health). Be sure to update your will if your chosen executor becomes incapable of the job, or even passes away.
Location: You might also consider location. All else being equal, an executor who lives close to your residence and physical possessions will have an easier time of administering the estate than someone who lives hundreds of miles away. Some provinces require out-of-province executors to obtain an in-province agent, but this is usually not a big deal. However, it is not recommended to select a non-Canadian executor since doing so will make estate administration more complex and may have significant negative tax consequences.
Finances: A less important consideration is the executor's credit rating. If an executor bond is required for the estate (depends on your will and particulars of the estate), it may be harder or more expensive for the executor to obtain the bond.
Communication Skills: The executor process can be difficult and take time. Heirs and other interested parties may become anxious during the process if they don't know what is happening, so it can be very helpful if the executor can communicate well and keep everyone calm and satisfied.
Honesty: Finally, keep in mind that your executor will have a fiduciary responsibility to act ethically and to follow all applicable laws.