Financial Focus: The benefits of naming a corporate executor
By Medicine Hat News on December 23, 2017.
Legal, tax and administrative issues can make the duties of an executor complex and time-consuming. Among their many duties, executors need to locate and prepare an inventory of estate assets, arrange for the sale of real estate, probate the will, if required, file up to five tax returns, distribute the estate and render an accounting of their administration to the beneficiaries. Many people find these responsibilities especially burdensome while they are grieving the loss of a loved one. In addition, executors often lack the time or ability to carry out all of their duties. If an executor lives in another city, province or country, it can be particularly difficult to give all these tasks their full attention. Balancing the needs and concerns of beneficiaries can also make the duties of an executor particularly challenging. In some cases, family dynamics can complicate further the process of settling an estate. If siblings and/or children don’t get along, or are estranged, it can create more stress on the executor through familial conflicts, and can lead to delays in administering an estate. A corporate executor is usually a trust company. A trust company is a legal entity that acts as a fiduciary, agent or trustee on behalf of a person or business entity for the purpose of administration, management and the eventual transfer of assets to a beneficial party. By naming a corporate executor you and your family have access to estate and trust professionals that are skilled in the intricacies of estate administration from both an emotional and technical knowledge perspective. They are sensitive to the complexities of your unique family dynamics and approach each situation with compassion and professionalism to make the estate settlement process as easy on you as possible. They can also be a neutral third party in those situations where there may be potential for familial conflicts over an estate. You can name a corporate executor as the sole executor to carry out your wishes or name one as a co-executor or alternate if your primary executor is unwilling, or unable, to carry out their duties. Even if you do not name a corporate executor in your will, executors can seek the assistance of estate and trust professionals to assist in the process of settling an estate, while retaining their decision making authority. There are costs in hiring a corporate executor to administer and estate. Costs are usually dependent on size and complexity of the estate itself. Whether you name a family member, friend or third party to administer your estate, the laws in most provinces allow the executor to be compensated by the estate for their time and responsibility. This article does not address all issues when selecting an executor for your estate. Corporate executorship or corporate executor services are another option to explore when deciding who should administer your estate. Before naming any executor please seek further legal counsel from a legal professional. A. Craig Elder, CFP, FCSI, CLU, CHS is branch manager with RBC Wealth Management Dominion Securities Inc. in Medicine Hat. Advisors are insurance licensed under RBC Wealth Management Financial Services Inc., a subsidiary of RBC Dominion Securities and is part of the RBC Financial Group, member CIPF. For more information on this and other financial strategies contact an advisor 403-504-2700. 10-9
