Rules to Pick the Right Estate Trustee for Your Will

You may be postponing making your will for the wrong reasons. Looking for the right estate executor is not a good reason.

Why? Because your choice today may not be a good choice in five to 10 years.

Executors are also called estate trustees in Ontario.

I give clients rules to choose the right estate trustee for their wills.

Here are my four of my rules. Let me know if you think they make sense.

A trustworthy family member with no conflicts of interest comes first.

A neutral person in charge of your estate may be preferable. Family may not always be your best neutral option.

A family member may be a good choice if you are interested in minimizing expenses. Family has an incentive in keeping costs low. Family may also not charge an executor’s fee.

Fees paid to compensate estate trustees for their care, trouble and pain are taxable income. If a family member is a beneficiary, they may not charge any taxable compensation. This fee can be about 5%, which is too much in many estates.

A lot still depends on how you divide your estate and what is in it. You should avoid conflicts of interest. Ask your lawyer if there is a potential for conflict.

Consider professionals or trust companies.

These executor choices will always charge fees to act as estate trustees. You don’t have to worry about theft when you hire a trust company.

Assess your long and short-term estate needs.

Do you need your estate trustee to serve as a trustee of minor children’s inheritance until they are 21? If so, your executors must serve during this long haul and have good health.

Estate trustee compensation can be specified in your will.

I do not recommend you tell your estate trustee to serve without compensation. Who wants that thankless job? You can provide for a fixed amount or a method of confirming compensation amounts. This formula can avoid having recourse in the court system for approval of executor fees.

Passing of Accounts

Executors may need to pass accounts to receive compensation. This legal process is an added step that can drive up costs. It involves more lawyers in analysing the executor’s work.

Bookkeeping and proper records are essential to avoid court appearances before a judge and audit.

In some cases, requiring an estate trustee to pass their accounts may be necessary when there is evidence of misconduct. However, if there are no complications, you can specify a process like mediation or an amount for compensation to avoid disputes.

Conflicts of Interest

What are potential conflicts of interest in your estate trustee? If you leave a specific business or property to the executors, be careful. You may need an independent or third-party to determine the price for executors to purchase estate property.

Do you need help choosing executors? I can provide personal advice. Book a meeting today to discuss your options. Contact me if you need a second opinion.

As a Certified Specialist, estate law is all I do.

Posted In: Estates, Executors On: November 21st, 2024

“I want to thank Ed and his firm for getting me through a very difficult time. He was recommended to me by another lawyer and I am grateful for that recommendation. Ed kept me grounded, listened to me, counseled me and supported me. I do so appreciate that. And he is worth every penny. Thank you!” - Claudia R, Toronto

“Thank you for your professional advice and lawyering while I was planning my will, all accompanied with your patience and a sense of humour.” - Valerie G, Toronto

“Ed is a "straight shooter" who tells it like it is and helps you make the best possible decisions in your circumstances. I've personally seen the "magic" he can work in an estate and recommend him without reservation to anyone who wants an iron clad will or estate advice and management that saves money, frayed nerves and friendships.” - Jim R, Burlington

I have used Edward Olkovich for my own Will and I was the executor of my Brother-in-law’s will. My brother-in-law had a terminal illness and Edward had us devise his Will to minimize taxes and problems. Ed is located locally @ Jane and Bloor. He was very knowledgeable, friendly and thorough and has written many books on the subject. - Belinda M, Toronto

Ed is a thorough, responsive estates lawyer who I would recommend to anyone when needing a will or dealing with estate issues. - Eva S, Toronto

Dear Ed and “Team Olkovich” “Thank you for your knowledge, expertise and hard work to make our executor duties (almost) stress-free. Will miss the laughs and stories you tell so well. All our appreciation always!” - Pat, Dave & John, Toronto

Dear Ed, Thank you for all your wisdom and kindness throughout the process of settling Ann’s Estate. - Cheryl, Toronto

“The easiest professional I had to deal with to settle my parents’ needs was Ed. I told him what we needed. He was gracious with his advice and help - without delaying matters.” - Iain N., Toronto

“Magic! The guy knows magic!” - Steve G., Toronto

“In the land of estate law, Ed is King.” - Cheryl W., Toronto