Choosing an Executor of your Will – Things to Consider

Congratulations! You’re here – which means you are thinking about updating your Will, completing a Will, or you’re reading this article to affirm what you already have in place.

Gone are the old days, where being appointed Executor is viewed fondly as an honour. While an executor appointment signifies your implied trust and confidence in the person appointed, the realities are that your Executor with have certain obligations and responsibilities relating to your Estate when the time comes.

So – how do you choose the right person? Here are some factors to consider:

1. What will your Executor be responsible for?
   
   An Executor is responsible for reviewing your Will, contacting beneficiaries, identifying your assets, ensuring estate liabilities (including tax returns) are paid, and reporting to beneficiaries before estate assets are distributed.
   
   You will want to choose someone who can carry out these tasks and follow the distribution instructions in your Will.
   
   
2. What type of assets do you own?
   
   Review the type of assets do you own and consider the steps that will be needed to get them to transferred to your beneficiaries.
   
   Do you have assets that may require additional attention (such as corporate assets or assets outside of Alberta), and if so, will the person(s) you are appointing be able to handle the administration of those assets (or retain the right help to administer these assets)?
   
   
3. Who are your beneficiaries?
   
   While in many situations, it can make sense for a beneficiary to be your Executor, there may be reasons why naming a beneficiary would not be advisable.
   
   Examples include: when an Executor may be placed in a potential or perceived conflict of interest with the estate administration (such as appointing children as executors where a spousal trust or sibling trust is involved), or if the appointment of an individual (to the exclusion of others) would create discord in family dynamics.
   
   Intentional and careful drafting can help to anticipate, minimize, and mitigate potential conflict between your Executor(s) and beneficiaries.
   
   
4. How long is the administration of your Estate (or the trusts in your Estate) anticipated to be?
   
   Are there any trusts in the Will (for your spouse, children, grandchildren, or nieces/nephews)? If so, will the Executor be responsible for administering these trusts, or will you be naming someone else to be the trustee?
   
   
5. Where is your Executor located?
   
   For estates in Alberta, Executors who are not residents of Alberta are subject to a bonding requirement. While the Court can waive this requirement, it may make sense to appoint someone resident in Alberta instead, if that option is available. Executors who are non-residents of Canada may also trigger additional tax reporting obligations and liabilities for the Estate, so it is important to review these considerations with an estate planning lawyer if they are relevant to your Will.
   
   
6. Review your choice of Executor regularly!
   
   Review your Executor appointments regularly – a Will can be changed at any time while you are still alive and have capacity to provide instructions.
   
   Life happens and circumstances change, for both you and the Executor who you have appointed. Reviewing your Will regularly will ensure that when the time comes, you have the right person in charge.
   

If you are looking to have your Will reviewed, revised, or completed for the first time – you are welcome to contact us to set up an appointment to discuss:

Katharine Zhang

• Email: kzhang@walshlaw.ca
• Phone: 403-267-8436

Estate support team:

• Katie Nicol – email: knicol@walshlaw.ca; phone: 403-267-8484
• Victoria Lacuata – email: vlacuata@walshlaw.ca; phone: 403-267-8416
• Tara Hunt – email: thunt@walshlaw.ca; phone: 403-267-8484

You’re reading Part 1 of our Estate FAQs series:

• Part 1: Choosing an Executor (You are here)