Embracing Financial Responsibilities
Approaching retirement, many Canadians experience the peak of their earning potential. They also may confront impending new financial responsibilities, be it supporting aging parents or addressing the needs of young adult children. Proactive engagement in insurance reviews helps you mitigate the financial risks associated with unexpected life events, like early death or disability.
The Role of Estate Planning
This may be a very good time to review your estate plans and wills. Selecting a capable and dedicated executor stands as a critical facet of estate planning. While involving young adult children in this process is common, selecting a single executor based on specific criteria—availability, capability, proximity, and personality—ensures smoother execution of your final wishes.
Executor's Responsibilities: A Guiding Chart
Your executor will have a number of duties to execute:
- Locate and review the will
- Make funeral arrangements
- Solicit professional counsel
- Notify beneficiaries of bequest
- Secure estate assets
- Open estate account
- Submit will for probate
- Advertise for estate creditors
- Convert residual estate assets to cash
- Pay financial obligations
- Complete final tax returns/ obtain clearance certificate
- Distribute inheritance
- Make trust arrangements
- Prepare estate accounts
- Close estate accounts
Executors, by law, are entitled to compensation for their estate duties, a point worth addressing during family discussions or estate meetings.
Executors Duty of Care
Executors bear the duty of acting in the beneficiaries' best interests, and failing to do so could lead to personal liability. Upholding this duty necessitates conscientious decision-making, maintaining records of decisions, investing estate property wisely, remaining impartial amidst beneficiary disputes, and attentively addressing beneficiary concerns.
Executors Support and Assistance
The role of an executor often prompts questions about whether it's an honor or a burden. Whomever you entrusted with this responsibility should possess the requisite capabilities and emotional disposition. It's crucial to convey to your executor that they won't be alone—seeking professional assistance from accountants, lawyers, or trust officers is not only acceptable but recommended. Empowering your executor in your will to engage such professionals can streamline the process and ensure expert guidance in estate settlement.