The loss of a loved one is by far one of life’s most painful moments that each one of us faces at one point or another. If we are lucky, we have many years before this becomes something to think about. When and if it does happen, much of this responsibility will fall in your hands if you’re the Executor of the Will.
Though none of this should be construed as legal advice – we are real estate experts, not lawyers – it is our hope that this guide will help you through the practical matters so that your family can begin its healing journey.
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Executor Versus Estate Trustee
If you Google “role of Executor” or anything to do with estate planning, you may be in for some confusion. That’s because the traditional terms “Executor” and the almost antiquated “Executrix” are being phased out in favour of the more inclusive “Estate Trustee.”
“Executor” will still occasionally pop up under your search results; but more often, you’ll see “Estate Trustee,” particularly on newer legal documentation. Though the word has changed, the meaning and the role have not. With that cleared up, understanding your role and responsibilities will be straightforward.
Distributing assets and closing off the estate are among your most significant responsibilities as Estate Trustee. This may include selling the home, which is a detailed process on its own. The posts below can help with a seamless transaction:
- What Are the Best Practices When Handling an Estate Sale?
- How to Sell a House for Someone Else
- What Are the Implications of Selling an Inherited Home?
Gather All Documentation
Getting organized may not technically fall under the description of your duties as an Estate Trustee. However, knowing where everything is, what it means, and having it all in one place will make your job much easier. First up, you’ll want to locate the most recent copy of your loved one’s Will, presuming there is one.
If your loved one is still living and has asked you to be their Estate Trustee, it’s a good idea to confirm if they have a Will. If not, we recommend working with an experienced lawyer to create one. When all of their wishes are clear and in writing, there is much less room for conflict after their passing.
Other documentation could include any banking or investment information, credit card and loan statements, tax bills, insurance policies, real estate titles, as well as multiple copies of the death certificate. The less time you spend chasing down information, the sooner you can move forward with the rest of your responsibilities. Your loved one can help by keeping all of these critical documents in a clearly marked folder.
Conflict is something an Estate Trustee may deal with after a loss. Learn more about how to handle it in What If Family Members Fight During an Estate Sale?
Apply for Probate
Depending on what assets your loved one owned, you likely need to go through probate before you can fully settle their estate. The fancier, more technical term for this is “obtaining a Certificate of Appointment of Estate Trustee.” To keep it simple, we’ll stick with the more well-known term.
Some assets, such as bank accounts and investments, can bypass probate if they have a designated beneficiary. Real estate will automatically pass to the surviving owner if the title is set up as a Joint Tenant. Under Tenants in Common, the deceased’s share of the property will go through probate.
Do you need to know more about estate planning and how it works to protect your family? The posts below can help:
- How Long Does Probate Take When Selling a Loved One’s House?
- Joint Tenants Vs Tenants In Common
- How to Choose an Executor to Sell Your Home
Manage Estate in the Interim
Taking care of the estate until all assets are divided among the beneficiaries is another task of the Estate Trustee. This involves paying off any debts and taxes the estate may owe and contacting any beneficiaries about their inheritance. If the deceased owned a home, you’ll also take care of any utilities, insurance, and maintenance.
Lastly, the Estate Trustee is responsible for filing the final tax return. Once these tasks are completed, you can request a Clearance Certificate from the Canada Revenue Agency. At this point, you are free to distribute all inheritances as outlined in the Will.
You’ll want to ensure you keep careful records in case the estate is contested. In addition, you are likely entitled to compensation for your role, as well as reimbursement for any expenses you incur. Accurate records will help to ensure you are not out of pocket.
Remember that you have a fiduciary duty toward your loved one who has passed on. This means you’re legally obligated to perform your responsibilities ethically and accurately.
It’s also your right to decline the role as long as you have not yet taken any action. If you proceed, you owe it to your loved one to carry out their wishes to the best of your ability. It can feel like a sobering responsibility, but don’t be afraid to ask for help! The support of friends, family members, and experienced professionals will be invaluable as you go through the process.
Do you need customized guidance during a challenging home sale? Our Peterborough real estate agents are here to support you from start to finish. Feel free to reach out to team@jeffandkatie.ca or call 705-243-9797 for more information.
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