5 Tips for Executors

Acting as an executor carries a considerable amount of responsibility and can be more challenging than is often initially expected.  To help executors navigate their obligations, this post provides 5 tips for executors.

1.     Ask this one question.  If you know that you are named as executor under a will, consider asking this one important question: where is the original signed will stored and how will I obtain access to it?  The executor requires the original signed will to properly administer the estate.  Without it, there will be hurdles to the administration process.  The executor also requires quick access to the will following death: while the deceased’s family may be involved with making funeral arrangements, at law it is the executor who is responsible for the body of the deceased.  Therefore, the funeral home may request to review the will when taking instructions for the burial/cremation of the deceased.

2.     Don’t delay.  It is the executor’s duty to take care of all the estate’s assets.  Therefore, the executor must determine what these are and secure them in a timely manner.  This may involve changing the locks on the deceased’s home, safely storing valuable assets, or freezing volatile investments.  There will also likely be tax and other filing deadlines, so it is important to determine what these are to ensure that none are missed. Moreover, there is a general rule called the “executor’s year” that claims that an executor has one year to administer an estate of average complexity.  Therefore, it is best not to delay the estate administration. 

3.     Get organized.  Executors are required to account and provide information to the beneficiaries of the estate.  Therefore, it is important to keep all receipts and statements from all transactions relating to the estate.  Subject to the terms of the will, executors are also legally entitled to fair and reasonable compensation from the estate for the work performed in administering the estate.  As such, it is a good idea for the executor to track the time spent on attending to the various tasks.  This will substantiate the amount claimed by the executor in compensation. 

4.     Communicate regularly with beneficiaries.  Beneficiaries are entitled to know what is happening with the administration of the estate.  To help stave off disputes or claims against the executor, it is a good idea to periodically advise beneficiaries of the status of the estate. 

5.     Get professional advice.  Executors have a fiduciary duty to the beneficiaries of the estate: they must follow the law and act with the highest ethical standards.  Executors are expected to act as would a “reasonably prudent individual”, but that does not mean simply taking a common-sense approach.  Many areas of the law can touch an estate and are complex – family, real estate, and tax law to name a few. Therefore, acting as a “reasonably prudent individual” often requires the executor to seek the professional advice of a lawyer or accountant.  Failing to do so can be deemed a breach of fiduciary duty and expose the executor to personal liability.  Therefore, it is best to seek the assistance of professionals early in the administration process. 

* A version of this post also appeared on the website of Children Believe, a charitable organization, following a nationwide presentation given by Nadia Bechai to its donors.