Being named an executor of a will is a big responsibility.
Whether you’ve been chosen by a loved one or are preparing for the future, understanding your role can help make the estate settlement process smoother.
From managing assets and debts to distributing inheritances, executors play a crucial role in settling an estate. To simplify the process, we've worked with Cadence to create a free downloadable checklist to guide you through each step.
What is an executor of a will?
An executor is the person named in a will to manage the estate after the testator (the person who made the will) passes away.
Most often an executor is an individual, a trusted family member or a friend of the person who created the will. However, some people will appoint corporate or professional executors as well.
The name of this role may change depending on the province. For example, in Ontario this role is an ‘Estate Trustee’ and in Quebec, it’s called a ‘Liquidator’.
Learn more about what an executor is →
Why would someone name me as an executor in their will?
Being named an executor is a sign of trust. While the role comes with responsibilities, it means the person believes in your ability to carry out their final wishes.
If someone has chosen you as their executor, they are relying on you to make critical decisions on their behalf after they're gone.
If you’ve been named an executor of someone’s estate, it’s usually helpful to speak with them to ensure you understand their wishes. Also, make sure to ask them where you can find a copy of their will when the time comes.
In most of Canada, only the physical will is valid, so you’ll need to know where the original printed and signed copy is.
If you’ve unexpectedly come into the role and cannot locate the original, you can consider searching the Canada Will Registry to see if they’ve registered the will.
What are the key duties of an executor of a will in Canada?
An executor has many important responsibilities, including:
- Carrying out funeral and burial wishes
- Managing estate debts and taxes
- Distributing assets to beneficiaries
- Overseeing property or business sales (if necessary)
- Communicating with heirs and beneficiaries
If you have a personal relationship with the testator, this can be an overwhelming process.
To help, we’ve partnered with the estate settlement experts at Cadence to assemble this checklist for executors.
What should an executor do first?
The first step in settling an estate is gathering key documents, including information on assets, property, and financial accounts.
You want to locate documents that relate to the following information:
- Legal information, such as the legal last will and testament, a list of assets, the marriage license, etc.
- Home and property information, such as the vehicle registration, any lease or rental agreements, deeds and titles, etc.
- Utilities and telecom information, such as gas, hydro, phone or internet information.
- Government information, such as their social insurance number, their driver's license, their health card, etc.
- Insurance information, such as the life insurance policy, home insurance policy or vehicle insurance policy
- Business information, such as incorporation documents, business licenses, shareholder agreements, etc.
- Memberships or account information, such as any passwords or account numbers.
- Employment or pension information, such as any employment contracts, pension statements, employment insurance records, etc.
- Banking information, such as mortgage information, credit card statements, lines of credit or loans, etc.
- Investment information, such as an investment portfolio, annuities or RRSP/RRIF/RESP.
- Tax information, such as tax returns or assessments, property tax bills, tax shelter documents, etc
Settling an estate: What are the responsibilities of an executor?
What financial responsibilities does an executor have when settling an estate?
Once the immediate funeral planning tasks have been completed, the executor should begin the distributions outlined in the will.
Before these distributions are made, the executor needs to sort out finances, pay off estate debts, collect debts that are owed, deal with any assets and complete tax returns.
Here are some of the financial duties required (see full list here):
- Cancel all credit cards and determine if any insurance exists to cover balances.
- Prepare an inventory of the assets and liabilities.
- Review the investment portfolio and other finances.
- Search the Bank of Canada’s Unclaimed Balances Registry to find any unclaimed bank accounts.
- Settle all debts and claims.
- Publish advertisement for creditors before distribution of assets (if required).
- Confirm completion of tax returns for the last six years.
- Prepare and file any unfiled returns, the Terminal T1 Tax Return and other relevant returns with the Canada Revenue Agency (CRA) within six months of the date of death.
Since handling estate finances can be complex, many executors choose to work with an accountant to assist with tax returns and financial matters.
What real estate and property responsibilities does an executor have when settling an estate?
If the will includes selling property, the executor is responsible for overseeing the sale or transferring ownership to beneficiaries.
Some additional steps to consider include:
- A review of mortgage documents and securing property deed(s), land titles and mineral rights.
- Contacting the mortgage issuer to check for insurance, stop or redirect payments.
- Updating records at the Land Registry office if property is transferred to the surviving owner.
- Arrange for valuations of real estate, personal property, securities and automobiles.
If there is vacant real estate, you should consider arranging for maintenance, property tax and utility payments, protection and care of the property. You might want to also consider changing locks.
What business responsibilities does an executor have when settling an estate?
If the testator owned a business, the executor should consult the testator’s lawyer and accountant, if possible, to determine next steps.
Some tasks to consider completing include:
- Review incorporation documents, shareholder agreements, business continuation plan, succession plan, buy/sell agreements, etc.
- Arrange for valuation of any business interests.
What application responsibilities does an executor have when settling an estate?
When someone passes, there can be certain applications required to complete. This includes Pension Plans, different benefit plans and/or provisions.
These applications could also include:
- Canada Pension Plan Death Benefit
- Canada Pension Plan Survivor's Pension and Child(ren)'s Benefits
- Allowance for the Survivor
- Child rearing provision
- Guaranteed Income Supplement (for spouse)
- Victim Services benefits
- Workers Compensation benefits
- Vehicle Insurance death benefits
Please note: This list is not exhaustive and other duties may be required, depending on the specific estate under administration.
Special considerations for executors
What should an executor consider when planning the funeral?
In the initial days after the passing (typically seven to ten days), an executor typically considers organizing the funeral, as well as securing assets and dependents.
Consult the deceased's will, if applicable, and consider the checklist below when fulfilling these tasks:
- Make the appropriate funeral, burial or donation arrangements.
- Arrange for the safe care of any dependents, pets and/or livestock.
- Secure the property and personal valuables of the deceased.
- Determine the immediate cash needs of the family.
- Secure the Funeral Director's Statement of Death (make sure you request several copies).
- Consider publishing an obituary.
- Redirect mail (this is if property is unoccupied).
Do you need probate?
Probate is the legal process of validating a will or appointing an administrator if there isn’t one. It’s not always required, but it depends on the estate’s complexity.
Learn more about probate in Canada →
Can an executor live in a different province/country than the person who created the will?
Each province has its own rules around executors from outside the province to post bond. This is also known as a probate bond or a fiduciary bond.
These estate bonds are to help protect the beneficiaries and the deceased testator and make sure their wishes are carried out correctly.
If you have been named an executor to a will in a different jurisdiction than that you currently live in, consider speaking with the testator to make sure that both of you are familiar with the implications so there are no surprises in the future.
Compensation, risks, and benefits for executors
Is the executor of a will entitled to anything?
An executor can be compensated for their work, and also reimbursed for reasonable costs that they have paid out of their pocket while settling the estate.
To be reimbursed, the executor typically needs to showcase and justify that the expenses benefited the estate and its beneficiaries.
In order for anyone to benefit from the distribution of assets and funds of an estate, they need to be named as a beneficiary in the will.
Can an executor still be a beneficiary?
Yes, an executor can also be a beneficiary, but they are required to act in the best interests of all beneficiaries, not just themselves.
If an executor is found to be overstepping or manipulating the settlement process, they can face legal consequences.
Is a trustee the same as an executor?
An executor and an estate trustee are two different roles, but they can be the same person. For example, with a Willful will, one person fills both roles.
The difference is that executors only take care of the entire estate administration process. Once that is completed (typically 12-18 months), there are no further responsibilities.
A trustee may act in a role for a longer period of time. For example, with Willful the testator may have a testamentary trust for minor children.
These trusts hold assets for minor children until the child reaches the age stipulated in the will (often 18, 21, or 25).
The trustee would manage that trust by filing tax returns and releasing funds for the child’s guardian. As such, this role can take longer to completely fulfill.
Are there any personal risks when acting as an executor?
An executor plays an important role in ensuring that the wishes of the testator are carried out.
That being said, being an executor can carry considerable personal risk because they can still face legal action if they abuse their powers.
There are up to 18 areas with supporting case law where an executor can be sued personally.
For example, in Ontario, executors can be fined up to 3% of an entire estate and if they’re found to have benefitted from making a mistake (ie. if they are also a beneficiary), and can even be put in jail for up to two years.
Learn more about the consequences of executor misconduct →
How long does an executor have to settle an estate in Canada?
A common guideline is that an executor has one year from the date of death to settle the estate, though complex cases may take longer.
That being said, there is no hard deadline on how long the estate can remain open. Every estate is unique and has a different level of complexity. The length can vary from six months if the distribution is simple, to three years to settle complex matters.
If the executor can demonstrate that they are taking action to keep the process moving forward, they can generally be allowed by the courts to proceed.
Given the executor’s need to secure tax clearance certificates from the Canada Revenue Agency (CRA), it would be unreasonable to expect the distribution to happen in less than one year.
However, the administrative “executor’s year rule” is helpful to ensure the matter is not dragging on for long periods of time.
Can you decline the role of executor?
Yes, you can decline the role of executor for someone’s estate.
Even if you are named an executor in a will, you are not required to serve in the role. Being an executor can be time-consuming and can come with personal risk.
If you are unwilling or unable to accept the responsibility, you can always choose not to accept.
This applies even if you are unexpectedly named the executor of an estate and you do not find out until the testator has passed.
This is why many wills include backup executors, just in case! If there is no executor appointed, the courts will choose one for the estate.
However, if someone lets you know that they would like to name you as their executor, it’s important to let them know if you are uncomfortable with the role sooner rather than later. This way they can choose another person and update their documents accordingly.
If you are still willing to take on this incredibly crucial role, you can also get executor liability insurance—something that many people don’t know exists! Make sure to apply early so you don’t get turned down.
Simplify estate planning with our checklist
The duties of an executor can be extensive and time consuming. The key to successfully fulfilling your responsibilities is consistent effort combined with an attention to detail.
Executors must stay organized and keep good records. This checklist will ensure you are staying on track, organized and completing the necessary tasks.
Download our checklist for settling an estate here →
Need to appoint your own executor? Start your will for free today →
