What is an Executor?
Understanding the Powers, Duties, and Responsibilities of Estate Trustees in Ontario
When someone dies, their estate must be administered and distributed according to the terms of their Will. The person responsible for carrying out this process is commonly referred to as an “executor,” although the formal legal term used in Ontario is “estate trustee.”
An executor occupies an important fiduciary role and may be responsible for administering significant assets on behalf of beneficiaries. As a result, the role carries not only important powers, but also serious legal duties and responsibilities.
Generally speaking, an executor’s responsibilities may include:
locating and reviewing the deceased’s Will;
identifying and securing estate assets;
communicating with banks and financial institutions;
applying for probate where necessary;
paying debts and taxes; and
ultimately distributing the estate to the beneficiaries.
Many people assume that acting as an executor is a simple administrative task. In reality, estate administration can often become time-consuming and legally complex, particularly where disputes arise among beneficiaries, creditors, or family members.
An executor is generally required to act honestly, in good faith, and in the best interests of the estate and its beneficiaries. Executors must also keep proper records and may be held personally liable where estate assets are mismanaged or distributed improperly.
It is also important to understand that an executor does not possess unlimited authority. An executor’s powers are derived primarily from the deceased’s Will together with Ontario estate law, and in certain circumstances, Court approval may still be required before particular steps can be taken during the administration process.
Despite the responsibilities involved, executors are generally entitled to compensation for the work they perform administering an estate. In Ontario, executor compensation is often based upon a percentage of the estate, subject to the overall complexity of the administration.
Choosing the right executor is therefore one of the most important decisions involved in estate planning. The ideal executor is typically someone who is organized, responsible, trustworthy, and capable of managing potentially sensitive family and financial matters.
A properly drafted Will can help provide executors with clear authority and guidance, while also minimizing the risk of confusion, delay, or estate litigation after death.
If you would like assistance preparing a Will or administering an Estate, please book your FREE CONSULT with Tonelli Estate Law today.
***This article is for general informational purposes only and does not constitute legal advice***
