Choosing an executor is an important part of making your Will. Your executor will be responsible for carrying out the instructions in your Will and administering your estate after your death, so it is worth putting some thought into who you appoint.
Many people automatically choose their spouse, an adult child or another close family member. While any of these people may be a good choice, your relationship with someone should not be the only consideration.
Your executor should ideally be someone you trust, who is willing to take on the role and who will be capable of dealing with the responsibilities involved when the time comes.
What Does an Executor Do?
An executor is the person named in your Will to administer your estate after your death. Understanding the main responsibilities of an executor in BC can be helpful when deciding who may be best suited to take on the role.
Depending on the estate, an executor may be responsible for locating and protecting assets, determining debts and liabilities, applying for probate, selling homes and stocks, filing tax returns, communicating with beneficiaries, paying estate expenses and ultimately distributing the estate according to the Will.
The role can involve considerable responsibility, particularly when an estate is complicated or there are disagreements among beneficiaries. This is why it is important to choose someone who you believe will be capable of managing these responsibilities when the time comes.
What Should You Look for When Choosing an Executor?
Your executor does not necessarily need to be the person in your family who knows the most about finances or the law. Executors can obtain assistance from lawyers, accountants and other professionals when needed.
Instead, consider whether the person is trustworthy, responsible, organized and capable of following through with potentially time-consuming tasks.
Good communication skills can also be particularly valuable. An executor may need to communicate with beneficiaries, financial institutions, accountants, lawyers and other parties throughout the administration of the estate.
It is also important to consider the person’s circumstances. Someone you trust completely may still not be the best choice if they are unlikely to have the time or ability to take on the role.
Should Your Spouse Be Your Executor?
Many people appoint their spouse as their executor, and in many circumstances this can make sense. A spouse may already be familiar with your finances, property and family circumstances. They may also be one of the primary beneficiaries of your estate.
However, appointing your spouse is not required. You may decide that another family member, friend or a professional trust company is better suited to administer your estate. Every major bank owns a trust company and there are also a couple of independent ones in BC as well.
It is also worth considering who should act if your spouse dies before you, becomes incapable or simply does not want to take on the role when the time comes. Naming an alternate executor in your Will can help address this possibility.
Can Your Executor Also Be a Beneficiary?
Yes. An executor can also be a beneficiary of a Will.
In fact, this is very common. A person may name their spouse or adult child as executor while also leaving that person some or all of their estate.
Being both an executor and a beneficiary does not remove the executor’s responsibilities. When acting as executor, that person is responsible for administering the estate in accordance with the Will and their legal obligations as personal representative.
Depending on the family dynamics and the terms of the Will, however, it may be worth considering whether appointing a beneficiary could create tension or a perceived conflict among other beneficiaries.
Should You Name Your Children as Executors?
Adult children are commonly appointed as executors, but that does not necessarily mean every child needs to be appointed.
When deciding whether to appoint one or more of your children, consider their individual strengths, circumstances and relationships with one another.
One child may be particularly organized and comfortable dealing with financial and administrative matters. Another may live far away or have significant work and family commitments. Choosing one child rather than another does not need to be a reflection of how you feel about them.
The goal is to choose the person or people you believe will be able to administer your estate effectively.
Should You Appoint More Than One Executor?
You can appoint more than one person to act as co-executors.
For example, parents sometimes appoint two or more adult children together because they want each child to have an equal role in administering the estate. Where the executors are the only beneficiaries, this saves two steps of the estate administration process. In turn this saves the estate time and money.
This can work well when the people appointed communicate effectively and are able to make decisions together. However, appointing multiple executors can also make the administration more cumbersome if they disagree, live in different locations or have difficulty coordinating documents and decisions. Three or more executors tends to be cumbersome and unworkable. Sometimes executors all need to sign paperwork together, so with multiple executors this becomes a challenge.
Before naming co-executors, consider how well the people you are appointing are likely to work together.
Rather than appointing several people to act at the same time, another option may be to appoint one executor and name one or more alternates who can act if your first choice is unable or unwilling to do so.
Does Your Executor Need to Live in British Columbia?
Your executor does not necessarily have to live in British Columbia. At Westcoast Wills & Estates, we often help executors who are located in different provinces.
However, location can still be an important practical consideration. Estate administration may involve dealing with property, financial institutions, professional advisors and other matters in BC. Having an executor who lives far away can sometimes make the process less convenient.
Choosing an executor who lives outside Canada can raise additional practical, tax and administrative considerations. If you are considering appointing someone who lives in another country, it is a good idea to discuss this with your estate planning lawyer before finalizing your Will. Usually the estate is taxed by CRA according to the residence of the executor. But more precisely, CRA looks where the central management and control of the estate takes place. If that place is outside of Canada, the estate will be taxed as a foreign estate.
Where your preferred executor lives is therefore one factor to consider, but it does not necessarily determine whether that person is the right choice.
Should You Ask Someone Before Naming Them as Executor?
Yes, it is generally a good idea to speak to someone before naming them as your executor.
Talking to your proposed executor gives them an opportunity to understand what you are asking of them and to let you know whether they are comfortable taking on the responsibility. If they are not, you can choose someone else and avoid leaving that decision to be dealt with after your death.
Even if someone agrees to be your executor when you prepare your Will, circumstances can change. Years may pass before they are called upon to act, and they may no longer be willing or able to take on the role at that time. This is one reason it is helpful to name an alternate executor as part of your estate plan.
Being named in a Will does not necessarily mean a person must accept the role when the time comes. If a named executor later decides not to act after the Will-maker has died, different steps may be required.
It is also a good idea to make sure your chosen executor knows where your original Will and other important estate planning information can be found.
Should You Name an Alternate Executor?
Naming at least one alternate executor is generally worth considering.
Your Will may remain in place for many years. During that time, your first-choice executor could die, become incapable, move away or experience changes in their own life that make acting as executor impractical.
An alternate executor provides another person who can step into the role if your first choice is unable or unwilling to act.
When choosing an alternate, consider the same qualities you considered when selecting your primary executor. Your alternate should not simply be an afterthought, as they may ultimately be the person responsible for administering your estate. This is especially true with spouses who name each other as their primary executor. Obviously there will come a time when neither spouse is alive, so an alternate executor is mandatory in this situation.
Can You Change the Executor Named in Your Will?
Yes. Your choice of executor does not have to remain the same for the rest of your life.
As your circumstances change, the person who made sense when you first prepared your Will may no longer be the best person for the role.
For example, you may want to reconsider your executor if the person you named dies, becomes incapable, moves away, your relationship changes or you simply decide someone else would be better suited to administer your estate.
This is one reason your Will and overall estate plan should be reviewed periodically and after significant changes in your life.
If you decide that you want to change your executor, speak with an estate planning lawyer about properly updating your Will rather than making handwritten changes to the original document.
Need Help Choosing an Executor or Preparing Your Will in BC?
Choosing an executor is just one of the important decisions involved in preparing a Will and estate plan.
At Westcoast Wills & Estates, our estate planning lawyers assist individuals and families across North Vancouver, Vancouver, Burnaby, Surrey, Richmond and surrounding communities with Wills, Powers of Attorney, Representation Agreements and other estate planning matters.
We can help you understand the role of an executor, consider who may be appropriate for your circumstances and prepare an estate plan that reflects your wishes.
Contact us to schedule a consultation with one of our estate planning lawyers.
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