By Anne McFarlane, TEP
You have been named as the executor of your loved one’s Will. Often perceived as an honour, it is important to remember that acting as an executor is a responsibility that requires significant time and attention. Below, we will explore some (not all) of the most important roles of an executor.
Did you know? If you are appointed as an executor in Nova Scotia, you are not required to act. If you have not yet begun acting as the estate executor, you can choose to renounce. We recommend you get legal advice before taking this step, of course.
Record-keeping
Executors have a duty to keep clear records of all assets and liabilities under their control and every step taken in the estate administration. This includes keeping record of funeral expenses, bill payments, tax payments, professional fees, out-of-pocket expenses you incur, etc. Make sure you keep all receipts and invoices organized, in case any beneficiaries question these expenses. You may find it is easiest to use a digital record-keeping system. This makes the information easily shareable with the beneficiaries and your professionals if and when necessary.
Probate
Probate is not always required; it will depend on the types and values of the estate assets. It is important you seek legal advice to determine if probate will be necessary. Probate is an administrative court process with specific required steps over the course of months or years, depending on the complexity of the estate. Nova Scotia’s Probate Act necessitates these steps to ensure the estate and the beneficiaries’ interests are protected. If the estate does require probate, there will be corresponding probate taxes to be paid.
Taxes
As the executor, you are responsible for multiple tax filings. You should ensure the deceased’s taxes were up-to-date at the time of their death and start organizing their paperwork relating to their personal and estate tax returns. This includes details of their various income sources, any out-of-pocket medical expenses, and any tax-deductible service fees.
Hiring Professionals
One of the best things you can do is work with professionals who specialize in estate work. This includes lawyers, accountants, and financial advisors who understand the specific requirements of your role.
Did you know? You are not required to hire the same lawyer for estate administration as the lawyer who drafted the Will. It is your choice, as the executor, who you will engage for this legal work.
Take Care of Yourself
The best thing you can do for the estate is make sure you are taking good care of yourself throughout the administration. In addition to all the work, you are likely grieving a significant loss, and the ‘grief work’ needs to be managed as much as the estate tasks. Do your best to get sufficient sleep, manage your stress, and get professional help if you need it.
If you have questions about your role as the executor of an estate, please reach out to a member of our estates team for further assistance.
This article is for information only and is not intended to be legal advice. If you have any questions or would like further information, you should consult a lawyer.
