Losing a loved one is never easy. When you are named the executor of their estate, it can be even more overwhelming. In British Columbia, the role of an executor is crucial in settling the estate of the deceased. This guide will help you understand the main duties of an executor, explained in simple terms.
You can get more detailed information about what an executor must do by arranging a consult appointment with one of our friendly lawyers. We’d be happy to help you come up with a plan.
Deciding to accept this role
The first step is to decide whether you want to act as the executor. Just because you have been appointed doesn’t mean you should automatically accept.
Some reasons why you might NOT want to act as an executor include:
- you don’t have the appropriate skills to manage the work
- the deceased had little in the way of assets
- the family is in disagreement about how the estate should be managed
- you are too busy and cannot afford the time required to do the work
- family members are threatening to make claims against the estate
- the deceased had a lot of debt, or was in financial distress
You can seek professional help with this decision.
It’s also possible for you to hire professionals who can help you manage the estate.
The Funeral
One of the most important immediate tasks for an executor is to ensure the funeral arrangements are made. This includes contacting the funeral home, arranging the service, and paying for funeral expenses from the estate’s funds. Don’t forget to look through the deceased’s papers of importance to see if they have already pre-paid their funeral arrangements.
Here are the main components to dealing with funeral arrangements:
- moving the deceased’s body to the funeral home
- making arrangements with the funeral home about the disposition of the remains
- arranging any funeral service the deceased or the family wanted
- dealing with the burial or distribution of ashes
- getting any markers or monuments organized and installed
Paying Bills and Taxes
As an executor, you need to manage the deceased’s bills and taxes. This involves paying outstanding debts and ensuring that any taxes owed are settled.
You will usually use the estate’s money to do this. If there is not enough money in the deceased’s accounts to pay these bills, you should get legal advice as to whether you should even take on the role of Executor – you might find yourself personally responsible for the deceased’s debts.
We strongly recommend you hire an accountant to help you deal with the deceased’s taxes, as these can be quite complicated.
Safeguarding Assets
Safeguarding the assets means protecting everything the deceased owned. This includes:
- locking up their home and changing locks, if needed
- securing valuable items
- making sure nothing is lost or stolen
- ensuring there is proper insurance coverage for any property or assets
- making arrangements to care for any pets or livestock
Inventorying Assets and Debts
You will need to make a list of everything the deceased owned (their assets) and everything they owed (their debts). This inventory is essential for the next steps in the probate process.
There are several ways to value assets:
- appraisals done by appropriate professionals
- BC Assessment values for real property
- opinions by Realtors or other relevant professionals
- contracts of purchase and sale between non-related people
Depending on the kinds of debts, you might need to speak with an accountant, financial planner or even a bankruptcy advisor.
It is extremely important that you do not automatically proceed to act as an executor of the deceased had significant debts. You must get appropriate accounting and legal advice before you take on this role.
Identifying and Notifying People of Your Application for the Grant
It’s your job to notify all of the people who have an interest in the estate.
This can include beneficiaries named in the Will, or people entitled to make a claim against the estate, or those entitled to receive a portion of the estate through an intestacy.
You must notify these people that you are applying for the grant of probate, which gives you the legal right to manage the estate.
Preparing the Documentation for the Court Application
You will need to gather and prepare several documents for the probate application. This includes the original Will, the inventory of assets and liabilities, and other required forms.
You can prepare this application yourself using the BC Government’s forms, or you can hire one of our friendly lawyers to help you with this.
You will need to swear the information in these documents to be true.
Arranging Probate Fees
The BC Government charges a fee for issuing the Grant of Probate.
As the executor, you need to arrange payment of these fees. Usually you pay them from the estate’s funds. However, if the deceased didn’t have enough in the way of liquid assets to pay for these fees, you might have to pay for them yourself. If you do that, keep good records of these receipts so you can be reimbursed.
In BC, these fees are based on the value of the estate. You can use our handy probate fees calculator to estimate the amount of probate fees you might need to pay.
Preparing an Accounting
Once you have obtained your Grant of Probate, it is time to distribute the estate according to the terms of the Will. The first step to doing this is to prepare an accounting of your work for the beneficiaries to approve.
You must keep detailed records of all transactions made on behalf of the estate. This accounting will show all the money that has come in and gone out during the probate process. The beneficiaries must approve this accounting. Alternatively, you can formally pass your accounts in court.
Advertising for Creditors
To ensure all debts are paid, you need to advertise for creditors. This involves placing a notice in the BC Gazette, giving creditors a chance to make claims against the estate. Once you advertise for creditors you are no longer personally responsible for the deceased’s debts.
This doesn’t mean you don’t have to pay the bill – it just means you aren’t personally responsible for the payment of it. You might still have to chase down family members to pay the bill, or deal with an insolvent estate.
Distributing Assets
Once all debts and taxes are paid, you can distribute the remaining assets to the beneficiaries as outlined in the Will. This may include money, property, and personal items.
You might do two distributions – an interim distribution and a final distribution. Do an accounting for each distribution.
Winding Up the Estate
Finally, you will wind up the estate. This means making sure all tasks are completed, all assets are distributed, and all records are finalized. Once everything is done, you can close the estate.
Conclusion
Being an executor is a big responsibility, but it is also an important one. By following these steps, you can ensure that your loved one’s estate is settled properly and according to their wishes. Remember, you can seek help from professionals if you need it, and take things one step at a time.
Contact us – we would be happy to help you with this work.