An executor’s obligations are to the beneficiaries and the creditors of the estate.
In broad strokes, the role, duties and responsibilities that the executor is required to perform for an estate are:
- Arranging the funeral
- Securing and appraising the assets of the deceased
- Applying for probate, if necessary
- Paying the debts and taxes of the deceased
- Accounting to beneficiaries
- Distributing the assets of the estate
Download or print Our Executor’s checklist here.
The Duties of an Executor (“estate trustee”)
An Executor must keep accurate financial records, including copies of all receipts, as well as a record of time spent in administering the estate.
This serves two purposes.
First, the Executor must be able to satisfy the Court and beneficiaries that the estate has been administered properly. Sometimes this is accomplished informally, but formally this requires preparing financial records in proper Court form, and presenting the records to the Court for approval. This process of Court approval is called a Passing of Accounts.
Second, the executor is entitled to compensation which depends, in part, on the amount of work done and time spent by the executor.
To do immediately:
۰ Determine whether the deceased left a will.
۰ Make funeral arrangements and pay for funeral.
۰ Retain a solicitor.
۰ Open an estate bank account.
۰ Notify beneficiaries of their interest in the estate.
۰ List estate assets and safeguard until distributed or sold.
۰ Arrange for management for the deceased’s business, if applicable.
۰ Collect income generated by the estate assets and/or payable to the deceased.
۰ Pay bills, mortgage payments, property taxes, income taxes, insurance premiums, credit cards.
۰ Check leases and tenancy agreements. Pay/collect rent, as appropriate.
۰ Redirect mail, cancel memberships and subscriptions to newspapers and magazines.
۰ Cancel health insurance, driver’s licence, utilities, credit cards.
۰ Arrange for care of pets.
Interim Matters
۰ Prepare an inventory of assets, including:
۰ real estate,
۰ money in deceased’s bank accounts,
۰ life insurance,
۰ interest in an estate or trust,
۰ investments.
۰ Arrange for valuation of assets where necessary.
۰ Advertise for creditors and prepare inventory of debts.
۰ Instruct solicitor to apply for a Certificate of Estate Trustee (Probate).
۰ Prepare and file income tax returns for the year of death and prior years (if necessary).
۰ Make reasonable inquiries for next of kin, if required.
۰ Consider any claims or potential claims against the estate and obtain legal advice (if necessary):
۰ Assess the rights of the surviving spouse under provincial family law.
۰ Assess the rights of any dependents who were financially dependent on the deceased.
۰ Set aside a reserve fund for estimated debts, taxes (including potential taxable capital gains), and the personal representative’s compensation.
۰ Prepare interim release and make interim distribution to beneficiaries, if appropriate. Learn more about interim distributions here.
Final Matters
۰ Convert investments and other assets to cash and deposit funds into the estate account, or invest the estate balance in interest-earning investments, pending final distribution to beneficiaries.
۰ Re-register assets in estate’s name, if applicable.
۰ File a T-3 income tax return.
۰ Obtain a clearance certificate from Canada Revenue Agency.
۰ Settle and pay all legitimate claims against the estate.
۰ Arrange for transfer of real property.
۰ Arrange rollover of RRSP/RRIF to spouse or dependent child.
۰ Apply for any benefits payable on death, including CPP/QPP death benefit, life insurance proceeds, death benefits from pension plans or annuities.
۰ Prepare and maintain estate accounts for approval by the beneficiaries or examination by the court, where appropriate (Passing of Accounts).
۰ Have your solicitor prepare and send final releases to all beneficiaries.
۰ If there is no will, distribute assets according to rules for intestate succession.
۰ Dispose of or distribute personalty according to instructions in the will.
۰ Prepare cheques, pay legacies, and transfer bequests.
۰ Invest assets for establishment of trusts.
۰ Pay balances due to residual beneficiaries.
۰ Close estate account.