When you’re asked to be an executor

Someday, a relative or a close friend may ask you to serve as the administrator of their estate (succession in Quebec). While this is an honour, it also involves significant responsibility.

The title varies by province—executor, liquidator, estate representative, administrator, estate trustee or personal representative. But the duties are essentially the same, and you should know what’s required before deciding.

Consider the duties

Administering an estate usually involves a large number of tasks. You work with an estate lawyer to obtain probate of the will, unless it’s a notarial will in Quebec. You identify all of the assets, determine their value and potentially sell some of them. You notify creditors and have the estate pay any debts. You work with a tax specialist to file a final income tax return and annual returns for the estate. You obtain a clearance certificate from the Canada Revenue Agency (CRA) and distribute the estate’s assets to the beneficiaries. These are only a few of the tasks, so it’s important to find out your complete duties.

Understand the time commitment

The process may be straightforward if the principal residence and retirement savings are the only assets, but a more complex estate takes longer to administer. Your involvement expands with a trust, real property other than the home, a business or another asset.

You need to consider the time commitment in two ways. First, think about the hours you’ll invest, which may be a concern if you lead a busy life. Second, consider the duration of settling an estate. Administering a simple estate may take about half a year to a year, while a more complex estate can take two years or more.

An executor is entitled to a fee, with guidelines varying by province. In Quebec, an heir doesn’t receive a fee unless it’s stipulated in the will or the other heirs agree.

Making your decision

When you accept the honour of being named the executor, you demonstrate your devotion to your close friend or family member. Although your duties will require time and effort, you’ll feel gratified to carry out the individual’s wishes for their heirs.

Should you be hesitant about the commitment, you might ask to serve as a co-executor or seek the help of a trust company. Note that in Quebec, a sole heir named as liquidator must accept the role.

If you decide not to accept the role, you may want to explain why. Your reasoning could help your friend or family member decide whom to ask.