Duties Of Executors in New Brunswick admin, March 1, 2024April 10, 2024 Introduction to Executor Responsibilities Understanding the role of an executor In this post we’ll look at some of the duties of executors. All estates are different and it would be impossible to list all of the duties that might be required of an executor. Particularly where there are young children involved or dependents with some form of disability, the proper administration of an estate can involve many years of oversight by an executor. As an executor, you must be aware that you may be held personally liable if the estate suffers any losses that results from any failures or neglect of duty on your part. Accordingly, executors must be fully aware of their legal obligations to ensure that they are not exposed to legal claims brought against them by disgruntled beneficiaries. An executor is a person appointed in a will to carry out the wishes of the deceased individual. Generally speaking, this role involves a number of important responsibilities, including gathering and managing the deceased’s assets, paying off any debts and taxes owed by the estate and distributing the remaining assets to the beneficiaries named in the will. The executor is also responsible for ensuring that an application is commenced with the probate court and that all legal requirements are met throughout the probate process. In some cases, the executor may need to make important decisions on behalf of the estate such as selling property or making investment decisions. The executor is subject to a duty to act in the best interests of the estate and its beneficiaries and to carry out their duties in a timely and efficient manner. Executors are often required to work closely with legal and financial professionals to ensure that all aspects of the estate administration are handled properly. It is important for anyone acting in the role of executor to fully understand the responsibilities involved and to seek guidance as needed. Key responsibilities and where to begin If you are an executor, your first step is to secure the household of the deceased. If the executor is not already in possession of the Will of the deceased, the next step would be to locate the deceased’s will and review its contents to ensure that the instructions that are set out are understood . It is also crucial for you to gather other important documents such as trust documents, financial records, property deeds, vehicle titles and insurance policies. Once the assets and liabilities have been identified, an executor must ensure that all legitimate debts and taxes are paid before distributing the remaining assets to the beneficiaries. Executors must keep detailed records of all transactions and decisions made during the estate administration process to satisfy the court that they have acted in accordance with the terms of the will and all applicable laws. Be aware that you may be required to complete what is called a ‘passing of accounts’ in the the probate court. In this process, the court will examine the records to ensure that the estate assets have been duly protected and administered. It should also be noted that an executor can be held personally liable for any losses suffered by the estate during it’s administration by the executor. Accordingly, keeping accurate records can protect the executor against claims made by disgruntled beneficiaries who may take the position that you have not acted in their best interests or have not lived up to the duties required of you resulting in losses to the estate. Seeking guidance and support from legal and financial professionals, accountants, tax experts and appraisers can be helpful in navigating the complexities of estate administration and ensuring that all duties are carried out in efficiently and in accordance with the law. Assessing and Gathering Assets Steps to locate and list all assets When someone passes away, their assets need to be located and listed by the executor of their estate in order to distribute them according to their will or state laws. The first step in this process is to gather all important documents, such as the will, bank statements, investment accounts, real estate deeds and insurance policies. The executor should also notify financial institutions, government agencies and other relevant parties of the decedent’s death. Next, the executor should create an inventory of all assets, including their values and any debts owed. This may involve hiring appraisers or financial professionals to assist in valuing certain assets. Once all assets have been identified and valued and all debts paid including any income taxes owing, the executor can begin the process of distributing them to the beneficiaries as outlined in the will. Once again, it is critically important for executors to keep detailed records of all their actions throughout this process in case any disputes arise. It is wise for executors to consult with an experienced probate attorney to ensure they are following all legal requirements and deadlines. An important first step would be to begin the probate process as soon as possible. Most financial and government institutions will require Letters Probate or, what some jurisdictions refer to as a Probate Certificate or Certificate of Appointment, before they will deal with the person named as executor in the Will . By following these steps, executors can effectively locate, list and deal with all of the assets belonging to an estate. Coordinating with financial institutions When it comes to coordinating with financial institutions, there are several important steps to take in order to ensure the proper handling of the deceased’s assets. One of the first tasks is to notify all relevant financial institutions of the death and providing them with a copy of the death certificate as proof. This will allow the institutions to freeze the deceased’s accounts and prevent any unauthorized access. Next, it is important to gather information on all of the deceased’s accounts, including bank accounts, investment accounts, retirement accounts, insurance policies and any other assets held with the institution. This information will be crucial in determining the total value of the estate. The executor may need to work with the financial institutions to transfer ownership of the accounts to the beneficiaries named in the deceased’s will or to the estate itself. This process can involve completing necessary paperwork, providing documentation and following the procedures set forth by the institution. Clear communication and cooperation with financial institutions is essential for an executor to successfully navigate the complexities of managing the estate. Valuing personal property and real estate When it comes to valuing personal property and real estate as an executor, there are several important considerations to keep in mind. Personal property can include items such as jewelry, artwork, furniture and vehicles, some of which may have sentimental value to the deceased’s loved ones. It is important to accurately assess the value of these items in order to ensure that the estate is distributed fairly and in accordance with the deceased’s wishes. This may involve hiring a professional appraiser or working with real estate agents to secure an accurate opinion of value. In some cases, disputes may arise over the valuation of the estate’s assets, particularly if there are multiple beneficiaries involved. As an executor, it is important to remain impartial and objective throughout the valuation process, seeking input from all parties involved to reach a fair and equitable resolution. It may also be helpful to consult with a legal professional or estate planner to ensure that all valuation decisions are made in accordance with the law and the deceased’s wishes. Valuing personal property and real estate is an essential aspect of the estate administration process. By taking the time to accurately assess the value of these assets and resolving quickly and efficiently any disputes that may arise, you can help to ensure that the deceased’s estate is distributed in a fair and transparent manner. Remember to seek guidance from professionals when needed and to communicate openly and honestly with all parties involved to achieve a successful outcome. Securing the Deceased’s Residence and Personal Effects Protocols for securing the home When a loved one passes away, it can be a difficult and overwhelming time for family members. In addition to dealing with the emotional aspects of the loss, there are also a number of practical matters that need to be addressed, including securing the home of deceased. There are several protocols that executors should follow to ensure that the home is safe and secure. First and foremost, it is important to change the locks on the doors to prevent unauthorized access. This is especially important if the deceased lived alone or if there are any concerns about the security of the home. Executors should also make sure that all windows are secure and that any alarm systems are activated. It is also a good idea to notify neighbors of the situation so that they can keep an eye on the property. Executors should also take inventory of any valuable items in the home and make arrangements to secure them either by moving them to a secure location or by installing additional security measures. If the home is empty, most insurance companies only allow 30 days of grace before they take the position that the insurance is no longer in effect. Accordingly, arrangements should be made with the insurance company so the company knows that that the home is now empty and that appropriate coverage is in place. By following these protocols, executors can help to ensure that the home of the deceased is safe and secure during this difficult time. Handling mail, utilities, and ongoing services When someone passes away, their executor is responsible for handling a variety of tasks, including managing their mail, utilities and ongoing services. This can be a daunting and time-consuming process as there are often numerous accounts to be closed or transferred. Executors must first notify the post office of the individual’s passing and arrange for mail to be forwarded to a new address or held for a certain period of time. They must also contact utility companies to ensure that services such as electricity, gas, water and internet are either transferred to a new address or shut off completely. Ongoing services such as subscriptions, memberships and automatic payments must be canceled or transferred to prevent unnecessary charges. Executors may need to notify banks, insurance companies and other financial institutions of the individual’s passing in order to close accounts and access funds to cover any outstanding bills or expenses. Care and cataloging of household furnishings When it comes to caring for household furnishings, executors must ensure that household furnishings are properly maintained and preserved. Proper storage is a key in preserving the longevity of household furnishings, as items should be stored in a cool, dry place away from direct sunlight and moisture. In terms of cataloging, as an executor, you should keep detailed records of all household furnishings, including descriptions, photographs and any relevant documentation such as receipts or appraisals. This information will be invaluable in the event of insurance claims or distribution of assets. By taking proactive measures to care for and catalog household furnishings, executors can ensure that valuable assets are well-preserved and accounted for. Respecting privacy and sentimental value in asset management In the realm of asset management, executors must be mindful of the need to respect privacy and items of sentimental value. Executors are entrusted with the responsibility of handling the affairs of an individual after their passing, ensuring that their assets are managed and distributed according to their wishes as outlined in their will. This task requires not only an understanding of legal and financial matters but also an appreciation for the personal and emotional significance attached to the assets being managed. It is important for executors to approach their duties with sensitivity and empathy, recognizing that the assets they are handling may hold sentimental value for the deceased’s loved ones. Respecting privacy is paramount in this process, as executors must navigate a delicate balance between fulfilling their duties and upholding the confidentiality and dignity of the deceased and their family. Locating and Managing Important Documents Importance of locating wills, trusts, and other legal documents Locating wills, trusts and other legal documents is of particular importance for executors who are tasked with carrying out the final wishes of a deceased individual. These documents outline how the deceased’s assets should be distributed, who should be appointed as guardians for any minor children and any other specific instructions that need to be followed. In addition, a deceased may have an agreement in place with an ex-spouse that must be taken into consideration. Without these documents, the executor may face challenges in properly handling the deceased’s estate, leading to delays in the distribution of assets and potential dissatisfaction and disputes among beneficiaries or others with legitimate claims against the estate. It is critically important for testators to ensure that their executors know where these documents are kept and to ensure they are easily accessible in the event of the individual’s passing. This can involve keeping them in a safe deposit box, with an attorney or in a secure location in the individual’s home. By having these documents readily available, executors can fulfill their duties efficiently and effectively, ensuring that the deceased’s final wishes are carried out as intended. When someone asks me to help prepare their Will, I always advise them to have a discussion with the person they propose to name as their executor. The duties can be significant and the proposed executor may not be willing or able to assume such responsibilities. The executor should also be made aware of where the Will and other important papers are located. Obtaining access to safety deposit boxes When a person passes away, their assets and belongings are typically distributed to their heirs or beneficiaries through a legal process known as probate. As part of this process, the executor of the deceased person’s estate may need to gain access to any safety deposit boxes that the deceased had in order to inventory and secure their contents. In order to obtain access to a safety deposit box, the executor will need to present a certified copy of the deceased person’s death certificate as well as their own identification and proof of their appointment as executor. It is important for the executor to follow the bank’s procedures carefully in order to ensure that they are able to access the contents of the safety deposit box in a timely and efficient manner. The executor should also be prepared to pay any fees associated with and maintaining the safety deposit box. By following these steps, the executor can ensure that the deceased person’s assets are properly accounted for and distributed according to their wishes. Communicating with beneficiaries about important papers As an executor, it is important to communicate effectively with beneficiaries about important papers related to the estate. This includes informing them about the existence of a will, trust documents, insurance policies, and any other important legal documents. It is important that the executor keep beneficiaries informed throughout the probate process and provide them with updates on the status of the estate. Clear communication can help prevent misunderstandings and disputes among beneficiaries, ensuring a smoother distribution of assets. Providing beneficiaries with access to important papers can help them understand their rights and responsibilities as beneficiaries. It is recommended to have open and transparent communication with beneficiaries to build trust and maintain a positive relationship throughout the estate administration process. Addressing Insurance and Vehicle Ownership When a person passes away, their assets, including vehicles, become part of their estate. The executor is responsible for managing the deceased’s estate, which includes transferring ownership of vehicles to beneficiaries or selling them. In terms of insurance, the executor must ensure that the deceased’s vehicles are properly insured until they are either transferred to a new owner or sold. This may involve updating the insurance policy to reflect changes in ownership or coverage. The executor may need to work with the insurance company to cancel existing policies or transfer coverage to beneficiaries. It is important for executors to be aware of the legal requirements and procedures involved in handling vehicle ownership and insurance to ensure a smooth transition of assets and avoid any potential legal issues. Steps to transfer vehicle ownership To transfer vehicle ownership as an executor, the first step is to obtain a copy of the deceased person’s will and any relevant documentation such as the vehicle title. Next, you will need to locate the vehicle title and complete the necessary paperwork to transfer ownership. This typically involves filling out a transfer of title form and submitting it to the appropriate government agency, along with any required fees. It is important to ensure that all paperwork is filled out correctly and that any necessary signatures are obtained. You may also need to provide proof of your authority as the executor, such as a copy of the will, Letters Probate or Certificate of Probate. Once the paperwork is submitted and processed, the vehicle ownership has effectively been transferred to the new owner. Dealing with ongoing insurance premiums When an individual passes away, their estate may be responsible for ongoing insurance premiums on policies they held. Executors, who are appointed to handle the deceased’s estate, must ensure that these premiums are paid in a timely manner to prevent the policies from lapsing. This can be a complex and time-consuming task, as the executor must access all insurance policies held by the deceased, determine which ones require ongoing premiums and make arrangements to pay them from the estate’s funds. Failure to pay these premiums could result in the loss of coverage and potential financial consequences for the beneficiaries. Executors should work closely with insurance providers to ensure that all premiums are paid on time and that the policies remain in force until they can be properly transferred or liquidated as part of the estate settlement process. Keeping detailed records of all insurance policies and premium payments is essential to ensure that the estate’s assets are properly managed and distributed according to the deceased’s wishes. The role of insurance in estate planning and probate When it comes to estate planning and probate, insurance can play a crucial role in ensuring that the wishes of the deceased are carried out smoothly and efficiently. Executors, who are responsible for managing the deceased’s estate and distributing assets to beneficiaries, often rely on insurance policies to cover any outstanding debts or expenses. For example, life insurance can provide a source of funds to pay off debts, taxes and funeral expenses, allowing the executor to distribute the remaining assets to beneficiaries without having to liquidate valuable assets. Insurance can also help protect the estate from potential liabilities, such as lawsuits or claims from creditors. By incorporating insurance into their estate planning strategy, individuals can provide peace of mind for their loved ones and ensure that their assets are distributed according to their wishes. Accordingly, insurance can be a valuable tool in your estate plan and can help your executor fulfill their duties effectively. If you are in the process of writing your Will or if you are an executor about to embark upon the administration of an estate, I hope you will find this content useful. If you have any questions, please ask in the ‘Leave a Reply’ section below or contact my office for a no-obligation consultation. Note that consultations can be arranged via video conferencing if you wish. Grant Rayner* *Grant is a member of the Law Society of Ontario. He has permission from the Law Society of New Brunswick to practice as a visiting lawyer with the firm Langdon Law pending the transfer of his membership with the Law Society in Ontario to the Law Society of New Brunswick. If you need advice in the area of Wills, Estates, Probate or Estate Litigation in the Upper St. John River Valley, call Grant at Langdon Law: 506.497.2560. Offices in Woodstock, Hartland and Florenceville-Bristol to serve you. Grant has been in practice for more than 39 years and has the experience, sensitivity and maturity to guide you through this difficult period in your life. duties of executors estate planning
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