As a financial planner, she has more money know-how than most. And her uncles had each clearly communicated their end-of-life wishes and ensured vital information was accessible.
Even still, it’s been exhausting.
“When you’re experiencing grief at the same time, which I definitely have been, there were moments where I was like, ‘I literally can’t think,’” Chung, CEO of Spring Planning, said in an interview from Vancouver.
What goes into settling a loved one’s estate
People often name someone they love and trust to be executor of their estates, which involves settling debts, managing assets and tying up myriad other loose ends. It’s a time-consuming, emotionally heavy and logistically dizzying role that can sometimes bring a financial hit. Those agreeing to take on this duty should have a clear-eyed understanding of what it entails and an openness to sharing some of the load, experts say.
“This is hundreds of hours of work,” said Erin Bury, co-founder of estate planning firm Willful. “This is not a minor task, and it involves a lot of co-ordination and expertise that you may not possess.”
Expect the whole process to take at least a year—maybe much longer.
Responsibilities in the immediate aftermath include making arrangements for the body, and any funeral or celebration of life. Executors need to get copies of the death certificate and track down the original will. They also need to secure the deceased’s property — changing locks and making sure insurance doesn’t lapse.
Later, there’s communicating with beneficiaries, getting in touch with banks and service providers and filing final tax returns.
What is probate, and how to prepare for it
Executors should be prepared to go through probate, a legal process where a court deems the will valid and gives the executor the authority to carry it out, though it doesn’t apply in all cases.
Until probate is complete and funds from the estate can be unlocked, an executor may have to front the cost of the funeral, lawyers, accountants and bills that still need to be paid.
Executors are entitled to compensation for their time. If the amount isn’t set out in the will, there are limits under provincial legislation.
The job comes with a fiduciary duty to act in the best interest of the estate’s beneficiaries.
“There’s a legal obligation to manage the assets and pay off the liabilities of the estate in a manner that doesn’t waste the assets. If the estate is going to take a long time to administer, you need to make sure that the investment portfolio is managed correctly, you’re taking reasonable steps to ensure the safety of all of the assets,” said Mark Biderman, senior vice-president of trust and legal at Cidel Private Bank, which provides executor and other services.
The additional challenges of settling an estate
An insolvent estate opens up a whole new host of challenges for executors.
“If creditors need to be paid, typically (executors) are the ones holding the bag at the end of the day,” said Biderman.
There can also be complications when the executor lives in a different jurisdiction than the deceased. An executor might have to put up assets as collateral in order to act if they’re out of province. And if the assets are outside Canada, there’s another country’s laws to navigate.
