Being an Executor is a job and needs to be treated like one. There are specific and enforceable legal obligations. It cannot be treated as a weekend or evening hobby that you do when it fits your schedule. There are reporting obligations to beneficiaries, tax filing obligations, duties on managing real estate and investments to name a few.
An Executor is entitled to compensation for doing this job. However, it is usually only received at the end of administering the Estate and by consent of the beneficiaries or approval by the Probate Court.
The Estate must be managed competently and in a timely fashion. An Executor is accountable to the beneficiaries. If they screw up, they may face removal and fines.
The good news is an Executor doesn’t have to do the job alone. For example, hiring competent legal counsel will help an Executor make sure they are doing everything they need to and when they need to do it. Delegating work is also possible and in most cases advisable. For example hiring an accountant to do the tax filing or property manager to look after real estate makes good sense. Hiring a trust company to assist may be a good option for Executors who feel obligated to act but have no experience or capacity.
Step 1 for every Executor is to get competent legal advice. A good Probate lawyer is worth every dollar they charge and usually save time and costs in the long run. The Estate pays the cost so an Executor is not out of pocket for the legal costs.
The lawyer who drafted the will may not be the right person to hire. An Executor needs counsel with experience and expertise in managing Estates, someone who knows how to spot problems before they arise or become big issues. An Executor who chooses to act on their own or with inexperienced counsel, usually causes unnecessary delays, confusion and even avoidable litigation.
For Estate advice in Nova Scotia, New Brunswick and Prince Edward Island, contact a lawyer from our Halifax office.
Published by Jonathan Hooper – jonathan@tupmanbloom.com