If you have been named as the estate trustee in someone’s Will, you should understand that is a big responsibility. Here are a few tips to help you through the process.
What an Estate Trustee Does
An “estate trustee” is someone who has the legal authority to manage a deceased person’s assets, debts, and final affairs. This person is also referred to as the “executor”, which has the same meaning.
If you have been named as the estate trustee in someone’s Will, you should understand that is a big responsibility.
Here are six (6) tips to help you get started as an Estate Trustee.
1. Understand the Estate Trustee Role Before Accepting it
As the estate trustee, you’re in charge of managing all the money, property, debts, and personal belongings of the deceased. The role has a lot of steps to complete and can take a significant amount of your time. Before you step into the role of estate trustee, you should decide if it makes sense to take on the responsibility. Once you have already begun acting as estate trustee, if you find you cannot complete all the duties, you may need to get court approval to step down.
It may not make sense for you to act as the estate trustee if:
- You live far away from where the estate assets are located and are unable to travel to deal with the estate
- You are not prepared to spend the necessary time to deal with the estate
The main duties you’ll be responsible for are:
- Applying for probate – this is a process where you are legally recognized as the estate trustee by the court.
- Gathering the deceased’s assets, maintaining the assets, selling assets.
- Paying the deceased’s debts and taxes. You may be personally liable if the debts and taxes of the deceased are not fully paid.
- Distributing what’s the assets to the beneficiaries named in the Will.
- Communicating with beneficiaries and acting fairly among them. You can be liable to beneficiaries if you have not fulfilled the responsibilities of the estate trustee role.
There are a lot of tasks involved when dealing with an estate. If you’re unsure about something, don’t guess! Speak to a member of our Estates Law team for advice.
2. Locate the original Last Will and Testament
If the person died with a Last Will and Testament (“Will”), you must locate the original Will. The Will sets out who is entitled to be the estate trustee and who should inherit from the estate as a beneficiary. Without the original Will, then a court will take longer to approve you as the Estate Trustee.
If there was no Will, then a law called the Succession Law Reform Act, R.S.O, sets out who can be the estate trustee. If your loved one has died without a Will and you are not sure if you are the best person to act as the estate trustee, speak to one of our estates lawyers to discuss your options.
3. Get Organized – Collect Required Documents
There will be lot of paperwork involved when dealing with an estate. Getting all the documents organized will save you time, reduce stress, and make settling the estate much easier. Keep all important documents in one safe place. Make a checklist of the documents collected, and what is still needs to be found. This will help you keep on track, so nothing gets missed.
Here’s a list of necessary documents of the deceased person you should gather:
- The original Last Will and Testament (“Will”)
- Any Codicil(s) of the Will
- The Death certificate
- The Social Insurance Number (SIN)
- Account Statements for the deceased’s financial accounts: Bank accounts, investment accounts, mortgages, loans, lines of credit, credit cards, pensions, and registered accounts (RRSP, RRIF, TFSA, etc.)
- Income Tax returns
- Deeds for real estate property they owned
- Insurance policies
- Vehicle ownership documents
4. Locate the Beneficiaries
While acting as estate trustee, you will need to communicate with the beneficiaries. Beneficiaries need to be notified of what they will be inheriting from the deceased’s estate. To facilitate this, you should compile a list of the beneficiaries and their up-to-date contact information: their mailing address, email, and phone number. If you are unable to locate a beneficiary, you may need to spend time search for their last known address.
5. Keep Estate Money Separate
You must keep the estate’s money separate from your own. Open a bank account in the name of the estate. All income from the estate, such as from the sale of the deceased’s property, should go into this account. All bills, debts, and distributions should be paid from the estate’s account. This makes it easier to track where the estate’s money goes. This also ensures that you are not improperly using any estate money for your own personal spending.
6. Get Professional Help When Needed
You don’t have to do everything on your own. Executors often hire professionals like lawyers, accountants, and real estate agents to help with legal, tax, or property matters. These fees are usually paid from the estate, not from your personal funds. Getting expert advice can prevent costly mistakes and help you settle the estate more smoothly.
Final Thoughts
Serving as an executor is an important job that requires care, patience, and honesty. While it can be challenging, it’s also a way to honor the person who trusted you with this responsibility. By understanding your role, staying organized, keeping good communication, managing money properly, and seeking help when needed, you can guide the estate through the process and carry out your loved one’s final wishes.
Please contact Gordon Vuong, Associate Lawyer at [email protected] / 905.798.6731 to book a consultation today.
