If you’re asked to be an executor, ensure you understand what is requested before accepting. Consider the following:

What is your health like? Your abilities? Do you have the skills needed to do this job?

How complex is the estate? What is the value of the assets? The higher the value, the more potential for problems (but the higher your potential remuneration). Where are the assets located? If any are foreign, this adds complexity.

Where are the beneficiaries located? If any live in a foreign country, this adds complexity. Where is your tax residency? If not Canadian, do not agree to be the executor.

What are the family relationships like now? If already contentious, things may escalate under stress.

Are there any trusts involved? Minor children? This means the estate could take a long time to settle. Given your age and health, is this realistic?

What will you get paid? Is it worth it?

What is the risk of litigation? Although a separate issue, this could add to the length of time needed to settle the estate.

If you become the executor at a time when your situation has changed or you are in poor health, it is important to back out right away. Once you have begun to fulfill the executor duties, you are locked in and will need to be released by the court. However, if there are some things that need to be taken care of immediately, like dealing with the disposition of the body and obtaining extra insurance for an unoccupied house, this will not lock you in.

At the time of death there may be a number of expenses that need to be paid right away, such as utility bills, funeral costs, extra insurance on a house, and probate fees. Generally you can submit these bills to the bank and they will issue funds to the appropriate party.

An executor does not assume responsibility for the debts of the estate. Any reasonable expenses incurred on behalf of an estate can be paid by the estate, even if it proves to be insolvent. The executor is responsible for keeping receipts for each expense.

It is the executor’s job to protect the assets and pay the debts. As long as you are reasonable in carrying out this duty, you will not be liable. To protect yourself, do not distribute all of the assets to the beneficiaries until the beneficiaries have approved of your record keeping, you have a document stating that all taxes have been paid, and you are sure all claims against the estate have been satisfied. The law requires there be no distribution of funds until at least 6 months after the date of probate.

As an executor, you are entitled to a fee of 0% – 5% of the gross declared value of the estate. This is money you earn and needs to be declared as taxable income. If this money comes to you as a gift, it is not taxed as income.

Being an executor is a job, not an honour. Like any employment, it is prudent to know what you are agreeing to before accepting.