The Executor Who Kept No Records
Lessons From Practice
The facts of this story have been altered to protect client confidentiality.
Most executors begin their role with the best of intentions.
They are often a spouse, child, sibling, or close friend who has agreed to carry out the wishes of someone they loved. Few have any prior experience administering an estate.
One estate I encountered illustrates why keeping accurate records is one of the most important responsibilities an executor can have.
The executor worked diligently.
The house was sold.
The bills were paid.
The investments were transferred.
The beneficiaries received interim distributions.
From the executor's perspective, everything appeared to be progressing smoothly.
Then the questions began.
One beneficiary wanted to know why certain expenses had been paid.
Another questioned the value at which personal belongings had been sold.
Someone else asked for copies of bank statements.
The executor was confident that every decision had been made appropriately.
There was just one problem.
Very few records had been kept.
Receipts had been misplaced.
Bank statements had not been saved.
Notes explaining important decisions had never been written.
The executor could remember why certain choices had been made - but memories are rarely as persuasive as documents.
As the beneficiaries became increasingly concerned, what had begun as ordinary questions gradually developed into mistrust.
Additional legal advice became necessary.
Information had to be reconstructed from financial institutions and third parties.
The administration of the estate became slower, more expensive, and considerably more stressful than it ever needed to be.
Fortunately, the matter was ultimately resolved.
The experience, however, left an important lesson.
Good Records Protect Everyone
Keeping accurate records is not simply good organization.
It protects beneficiaries by promoting transparency.
It protects the executor by demonstrating that decisions were made honestly, reasonably, and in accordance with their legal obligations.
Simple habits can make an enormous difference, including:
retaining receipts;
preserving bank and investment statements;
keeping copies of important correspondence;
recording significant decisions; and
maintaining an accounting of all money received and paid from the estate.
These records become invaluable if beneficiaries have questions or if the executor is ever required to formally account for the administration of the estate.
Final Thoughts
Being named as an executor is both an honour and a significant legal responsibility.
Most estate disputes do not begin because someone acted dishonestly.
They begin because people are uncertain about what happened.
Good record keeping provides clarity.
Clarity builds confidence.
And confidence often prevents conflict.
If you have been appointed as an executor and would like guidance regarding your responsibilities, or if you are preparing a Will and would like advice regarding the selection of an executor, Tonelli Estate Law would be pleased to assist - BOOK A FREE CONSULT TODAY.
This article is for general informational purposes only and does not constitute legal advice.
