Who Will Execute Your Estate Plan?
Choosing an executor (liquidator in Quebec) to appoint in your will is an important estate planning decision. Many people instinctively appoint their spouse, siblings or adult children. This may seem logical, but appointing a family member is not always the best option.
While some view being named as executor as an honor or a sign of trust, those who have served in the role know it’s far from being a privilege—it’s a demanding job. Being an executor involves a large amount of time, effort and personal liability. Your executor will be tasked with all matters relating to your death, from sorting through personal belongings and securing your valuables to filing your final tax return and everything in between. It’s a burden not everyone is equipped or willing to take on.
Key factors to consider
When selecting an executor, it is intuitive to consider trust. However, carefully weighing a range of other factors helps to ensure the person you choose is well suited to act. Here are some of the most important:
Capability and personal circumstances
Age, health, maturity, knowledge and personal circumstances all influence a person’s ability (or inability) to be an effective executor. It’s essential to be sure the person you choose is up to the task.
Family dynamics
Try to mitigate the potential for conflict by choosing someone who has a positive relationship with your family members and beneficiaries. This can go a long way toward reducing potential conflict and ensuring smooth administration of your estate.
Citizenship or residency
If the person you choose is a foreign resident or citizen, there is the potential for additional tax and legal consequences, as well as for extra reporting requirements. Be aware of the implications before naming a foreign resident or citizen.
Geographic proximity
If the individual lives far from you, the logistics of managing your estate can become more complicated, potentially causing delays and adding costs. Proximity can make the difference between expediency and postponements due to your executor having to travel.
If, after considering all of this, you have someone in mind to be your executor, be sure to speak with them to ensure they are willing and able to act for as long as may be needed when called upon.
We can help
We’re happy to meet with you and ensure you’re prepared for any upcoming changes to the rules. We work with business professionals, executives, and families to grow and protect their wealth using our Wealth Plan formula. To discuss our approach and if it is the right fit for you, we invite you to schedule a no-obligation discovery consultation.