The Executor’s Checklist: Getting It Done

26 Oct The Executor’s Checklist: Getting It Done

Acting as an executor is serious business. The job can last a long time, but you’ll have to make sure you cover each step carefully and thoroughly. All the details are important. Staying organized with a checklist is one of the best ways to stay on top of everything.

FIRST STEPS

• Find the will. Consult and/or retain a lawyer, as necessary.
• Make funeral arrangements.
• Arrange for care for small children and pets. Dispose of any perishables in the home.
• Request several copies of the official death certificate.
• Secure the assets.
• Ensure the family’s financial needs are met.
• Notify pension sources to stop payment.
• Arrange for bills to be paid.
• Redirect mail to the executor’s address.
• Cancel or suspend email and social media accounts.
• Cancel health insurance coverage, driver’s licence, cable, telephone, club memberships, magazine and newspaper subscriptions, credit cards, etc. Obtain any refunds where appropriate.
• Investigate the overall financial and tax situation of the deceased.
• Investigate the debts owing at the date of death, such as credit cards, taxes, utilities, loans, mortgages, etc.
• Consider the ability of the estate to meet payment obligations such as probate fees, income taxes, liabilities, legal and accounting fees, and other expenses.
• Make arrangements for the handling of incoming payments payable to the deceased (i.e., interest and dividends).
• Probate the will.
• Open communication with the beneficiaries and arrange a meeting.
• Be sure to keep complete, accurate records of time, money and decisions. This is critical and continues throughout the process.

THE FIRST MONTH

• Notify financial institutions, creditors and insurance providers of death. Contact Service Canada to adjust benefits.
• Begin claims on life insurance policies.
• Contact current and former employers, if applicable; notify them of death and apply for any applicable benefits.
• If loans are insured, complete applicable forms.
• Obtain a copy of previous years’ tax returns.
• Arrange for the safekeeping of valuables.
• Document current market value and original purchase price of investments for tax purposes. Locate original investment certificates, stocks, bonds, property deeds, etc.
• Prepare listing of safety deposit box contents.
• Arrange adequate insurance for estate assets.
• If required, publish notice to creditors.
• Supply required documents to court and pay probate taxes to provincial government.
• Open an estate account to deposit income, pay expenses, and transfer account balances.
• Settle debts owed with estate funds.
• Pay any income taxes owing from previous years that were overdue at the date of death.
• Remind joint-credit account holders that they may need to reapply for credit as an individual.
• Continue to keep records. Don’t miss any money or time spent. Include any decisions that were made.

MONTHS 3-6 AFTER DEATH

• Settle legitimate claims prior to distribution of assets.
• Resolve issues related to guardianship of children.
• Retain an accountant, especially one with experience settling estates.
• Secure the assets. Get valuations. Protect and insure valuables.
• Initiate sale/consolidation of assets and transfer of titles.
• Gather safety deposit box contents and close safety deposit box.
• Begin to resolve debts and liabilities. Pay taxes, insurance, credit cards, etc.
• Safeguard surplus cash until estate is finalized.
• Obtain certificate of appointment. Secure court appointment as Estate Trustee.
• Don’t forget to keep records. Include details, especially concerning steps taken and decisions made.

MONTHS 6-12 AFTER DEATH

• File the income tax return for the last year of life. Determine if a ‘rights and things’ return will be required.
• Distribute personal belongings and legacies, as outlined in will. (Cancel insurance once transferred or sold.)
• Oversee establishment of any trusts outlined in will.
• Apply for Final Clearance Certificate from CRA to confirm any tax liabilities have been settled.
• Prepare statement of executor’s compensation, if applicable.
• Arrange for final distribution of the assets (after receiving final tax clearance certificate).
• Distribute residue of the estate to beneficiaries as outlined in will. Collect receipts.
• Finalize estate accounts and provide to beneficiaries.
• Finish up the records. Prepare a final report of all estate transactions.

To learn more about the role of the executor, contact us.

The list above is intended to serve as a guide to the responsibilities and obligations of an executor. It is not comprehensive and does not substitute for legal advice.

Joel Rose

With over 35 years of experience, Joel Rose helps families – and their businesses – to prepare for the future. He offers guidance and support to help his clients create estate plans and succession plans that meet the needs of the whole family. Through his extensive professional and personal experience, Joel is known for his compassion and his ability to find a creative solution to meet each family’s needs.