There may come a time when a parent or loved one assigns you the role of executor of their estate. This might not be a surprise if they’ve had a conversation with you early on about their final wishes. They may have even shared with you their preferences about end-of-life care and how their assets should be handled.
It can feel like a great honour to be named an executor; your loved one has entrusted you with the full responsibility of carrying out their final wishes in the event of their declining health or death.
READ MORE: How to talk to your family about your final wishes
The reality of what the role entails, however, comes as a surprise to most people. In partnership with RBC Royal Trust, we look at an executor’s responsibilities and the resources available to help.
“It’s not just an honorary title,” says Leanne D. Kaufman, president and CEO of RBC Royal Trust. Being an executor means completing more than 70 different tasks, she explains, adding that because these tasks often rely on third parties and government agencies, an executor’s duties may not be finalized for two to three years.
Some of the most common tasks for an executor include making the funeral arrangements, locating the will, applying for probate if necessary, dealing with estate lawyers, safeguarding assets, making tax return preparations, identifying assets and liabilities, and cancelling subscriptions and phone bills and credit cards.
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“Everything from real estate to insurance to digital assets to investments — all that has to be identified, collected, inventoried and then managed during this period of time before it’s distributed to the beneficiaries,” says Tracey Woo, vice-president of professional practice and tax at RBC Royal Trust.
READ MORE: Digital assets need to be considered, included in your will
It can take a professional executor 100 hours of work to administer a standard-size estate of average complexity. When factoring in investment properties, businesses and different family dynamics such as split marriages and blended families, the process can get even more complicated.
“Executors have the highest form of fiduciary obligations to the beneficiaries of the estate and really to the legacy of the person they’re acting for,” Kaufman says. “So there’s a high threshold of legal liabilities to begin with, but there’s also a high burden of administrative responsibility.”
But there are professional services available to help those appointed to the role. RBC Royal Trust offers executor services in which they can act as the executor’s agent to implement the estate plan, alleviate the heavy administrative burden and do everything that an executor must, short of decision-making. A loved one can even appoint a trust company to act as their executor so that the work doesn’t have to fall on a family member.
For named executors, it’s often worth considering whether a professional could be helpful during a very difficult time. “It’s kind of like doing your taxes,” Kaufman says. “You can do it yourself, but why would you want to? Why would you not turn to professionals for this just like you do for so many other aspects of your life?”
In situations where there are fractured or sensitive relationships, Kaufman says, it is sometimes easier to have a neutral third party to help maintain family harmony and be the point of communication as well.
When working with a trust company, a team of empathetic and experienced professionals are available to provide expertise and support the executor during their grief, when it can be more challenging to implement life-changing tasks and take on a mountain of legal obligations.
“Being an executor is an extremely onerous job that has to be completed during a very difficult time,” Woo says. Executors already have to manage family relationships and expectations, she adds, so it can be an immense help to have the support of knowledgeable professionals.
Want to talk to a professional about the responsibilities of an executor? Turn to RBC Royal Trust for help.
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