Let’s be honest – being named an executor isn’t exactly like winning the lottery. In fact, it’s more like inheriting a part-time job you never applied for. But understanding what this role entails can help you decide whether to accept this honour (or politely decline it).
Think of an executor as the CEO of someone’s final wishes. You’re the person responsible for ensuring your loved one’s assets find their rightful homes and that their debts don’t come back to haunt anyone. No pressure, right?
Here’s what you’ll actually be doing as an executor:
First up, you’ll be playing detective. You’ll need to track down all assets, from the obvious (like that cottage in Muskoka) to the not-so-obvious (like that cryptocurrency wallet they mentioned once at Thanksgiving). You’ll also need to locate important documents, which can feel like a real-life escape room challenge.
Next, you’re the chief accountant. You’ll need to file that final tax return (because yes, even death doesn’t excuse us from taxes in Canada), pay off any lingering debts, and keep track of every dollar that comes in and goes out of the estate.
Then comes the diplomatic part. You’ll be managing family dynamics while distributing assets according to the will. Aunt Martha really wants that antique vase? Well, if it’s not specifically mentioned in the will, you’ll need to make some tough calls.
The role typically takes about a year to complete, though complex estates can take longer. And yes, you can get paid for your trouble – executor fees are typically between 3-5% of the estate’s value in Canada.
Here’s a pro tip: If you’re writing your own will, consider naming multiple executors. It spreads out the workload and reduces the chance of family feuds. Just make sure they can work together better than the Maple Leafs’ defence line.
Remember, being an executor is a significant responsibility, but you don’t have to go it alone. Legal and financial professionals are there to help you navigate the process. After all, even CEOs have their board of advisors!
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Note The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes and it is not intended to provide specific advice including, without limitation, investment, financial, tax or similar matters. The views expressed are those of the author and not necessarily those of Aviso Wealth.
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