What You Need to Know Before Becoming an Executor

Has anyone ever asked you to be an executor? Better read this before you say “yes”. Handling someone’s estate affairs can put you at risk. Sometimes, you can feel like you fell out of a boat into shark-infested waters. Let me explain how executors get into trouble and how you can protect yourself if you must handle an estate.

The job of being an executor is stressful. Look at the estate of the late legendary singer, James Brown. The executors of the godfather of soul were dragged into court decades ago as they were about to start performing their duties.

James Brown’s children who were not chosen by their father as executors were upset. They went to court to ask a judge to remove their father’s executors. Why? Because they wanted Brown’s executors replaced with estate representatives who
would be neutral.

Remember this lesson from Brown’s estate: estate executors must be neutral and not take sides.

You do not have to be rich to run into similar difficulties handling an estate. So, what can you do to avoid headaches as an estate executor? The first step is to do your homework and educate yourself about what your duties are and learn how to stay out of trouble.

Let’s say you are the executor of your cousin Bob’s estate. You are responsible to protect, probate and pay out his estate. How you manage or mismanage the estate can make you personally, responsible to beneficiaries, income tax authorities, co-executors and the courts that supervise your actions.

By law, executors are fiduciaries, meaning they are persons in a position of trust. Fiduciaries have either power or control over another person or their property. Executors have fiduciary duties since they control a deceased person’s assets for the benefit of those who have claims to the estate. These duties can create dangers that you need to be aware of.

Who Can Sue Executors?

Here’s who can sue an executor in a typical estate:

1. Creditors
2. Beneficiaries and Relatives
3. Co-executors
4. Courts

The job of being an estate executor carries legal responsibilities. You may never have anticipated that you could be attacked by any of the following:

1. Creditors including the income tax department looking for payment
2. Beneficiaries and Relatives who appear to constantly ask, “Where is my money?”
3. Co-executors if you share responsibilities and compensation.
4. Courts can question your work, recordkeeping and compensation.

Not exactly what you expected when you said “yes” to your Aunt Mary’s or Uncle Jack’s request to handle their estate, is it?

Are you confused about your executor duties? I have answers. I can help you understand executor work and what it takes t handle an estate. Contact me for a meeting to discuss your questions. I look forward to helping you.

As an Ontario Certified Specialist, estate law is all I do.