A will is meant to speak for you after your death. It sets out how your property should be handled and who should receive your assets. However, a will cannot carry out those instructions on its own. That responsibility falls to the person you appoint as your executor.
Choosing an executor is one of the most important decisions when preparing a will. The executor is responsible for carrying out your instructions and administering your estate according to the law. While many people have someone in mind for the role, it is worth taking time to consider whether that person is truly suited for the responsibilities involved.
An executor must be trustworthy, organized, and capable of making decisions that affect the estate and its beneficiaries. Understanding what the role involves can help ensure the right person is chosen.
What Does an Executor Do?
An executor is responsible for administering the estate of the person who has passed away. This involves a wide range of duties that begin shortly after death and continue until the estate has been fully distributed.
Some of the key responsibilities of an executor include:
- identifying the assets and liabilities of the deceased
- taking control of and protecting estate property
- managing financial matters on behalf of the estate
- ensuring debts and taxes are paid
- distributing the remaining assets to beneficiaries according to the will
Executors are responsible for carrying out the instructions in the will while also ensuring they comply with Alberta law. They must act in the best interests of the beneficiaries and manage the estate with care and transparency.
Key Qualities to Look for When Choosing an Executor
Many people choose a close family member or trusted friend to act as executor. While familiarity and trust are important, it is also essential to consider whether the person has the ability to handle the responsibilities involved.
Before appointing someone as executor, it can be helpful to ask a few important questions. Is the person responsible and trustworthy? Are they capable of following instructions and managing financial matters? Do they have the judgment and integrity to make decisions that affect the estate and its beneficiaries?
The role of executor often requires time, organization, and attention to detail. Executors may need to communicate with financial institutions, government agencies, accountants, and beneficiaries throughout the administration process.
Choosing someone with the ability and willingness to manage these responsibilities can help ensure that your estate is handled properly.
Understanding the Duties and Liabilities of an Executor
Executors have significant legal responsibilities when administering an estate. They must identify all assets and liabilities of the deceased, take control of property, and ensure that estate assets are protected until they can be distributed.
This can include maintaining physical property, managing financial accounts, and ensuring that estate funds are used appropriately.
Executors are also responsible for ensuring that taxes are filed and paid, debts are settled, and the remaining assets are distributed according to the will.
Because of these responsibilities, executors may face personal liability if they fail to properly administer the estate. For example, distributing assets before debts or taxes are paid could expose the executor to financial claims.
For this reason, many executors choose to work with lawyers and accountants to ensure that estate administration is handled correctly.
What Is the Executor’s Year?
Estate administration does not happen immediately. Gathering information about assets, settling debts, and dealing with taxes can take time.
A commonly referenced guideline in estate administration is known as the “executor’s year.” This refers to the general expectation that an executor should complete most of their duties within approximately one year of the deceased’s death.
During this period, the executor is expected to identify assets, pay debts, file necessary tax returns, and begin distributing the estate.
If more than a year passes and beneficiaries have not received their inheritance, they may begin asking questions about the progress of the estate administration. In some cases, beneficiaries may want to know whether the executor has begun their duties, whether the estate is nearing completion, or whether significant delays have occurred.
While complex estates can take longer than a year to administer, the concept of the executor’s year helps set expectations for both executors and beneficiaries.
What Is an Account of the Estate?
Beneficiaries have the right to understand how the estate is being administered.
If beneficiaries have concerns about the executor’s actions, they may request an account of the estate. This accounting is a detailed record of the estate administration and includes information about:
- assets collected by the estate
- debts and expenses that have been paid
- distributions that have been made to beneficiaries
- remaining assets within the estate
Executors must be prepared to provide this information if requested by beneficiaries or if required by the court. Maintaining accurate records throughout the administration process is therefore essential.
What Happens If an Executor Refuses to Act?
Sometimes, the person appointed as executor decides that they do not want to take on the responsibility when the time comes.
In Alberta, an executor can formally decline the role by filing a GA11 Renunciation Form with the Alberta Courts. This document confirms that the person does not wish to act as executor.
Once the renunciation has been filed, another individual with an interest in the estate may apply to the court to be appointed as executor.
What Happens If an Executor Cannot Continue Acting?
There are also situations where an executor initially accepts the role but later becomes unable to continue.
For example, an executor may pass away or lose capacity while administering the estate. In these cases, the court may need to become involved to appoint a replacement executor to continue the administration process.
The replacement executor would then take over the remaining responsibilities for managing and distributing the estate.
Can an Executor Be Removed?
In some situations, beneficiaries or other interested parties may believe that the executor is not properly performing their duties.
If an executor has acted dishonestly, failed to carry out their responsibilities, or otherwise mishandled the administration of the estate, an application can be made to the court to have the executor removed.
These applications are often highly contentious and can involve significant legal disputes. Anyone considering this type of action should seek legal advice before proceeding.
Choosing the Right Executor With Guidance From Robertson LLP
Selecting the right executor is a critical part of effective estate planning. The person chosen must be capable of managing the estate, communicating with beneficiaries, and carrying out the instructions set out in the will.
At Robertson LLP in Calgary, we assist clients with estate planning and will preparation, including helping them choose an appropriate executor. Our team also provides guidance to executors who are administering estates and may need assistance understanding their legal responsibilities.
If you are preparing a will or have questions about the responsibilities of an executor, speaking with an experienced lawyer can help ensure your estate plan is structured properly and that your wishes are carried out as intended.
Disclaimer
This article is intended for general informational purposes only and does not constitute legal advice or create a solicitor-client relationship. Real estate laws and procedures may vary based on individual circumstances and local regulations. If you require legal advice or assistance with a specific matter, we encourage you to contact a qualified lawyer directly.
