The 11 Responsibilities of an Estate Executor

No one eagerly accepts the responsibility of being an estate executor. It involves managing the financial affairs left behind by someone who has passed away, handling their assets and tax returns, notifying important parties, and arranging the funeral. This process can quickly become complicated, especially since people rarely leave their affairs neatly organized. Additionally, executors may be held personally liable if they do not perform their duties with proper diligence.

To help you understand the responsibilities that come with being named an estate executor, we’ve broken down the most crucial duties that every estate executor will have to carry out. Use this blog post as a guide to get you started on the difficult path of executorship, but if you’re looking for a more robust resource, download our Executor Checklist for Canadians.

Locate the will and other critical estate documents

The most important document needed for the entire probate process, as well as for the executor, is the deceased’s will. The will outlines how the deceased wanted their assets to be distributed to their beneficiaries, who the beneficiaries of the estate are, who they desire to be their executor(s), their funeral and/or burial wishes, and other critical details.

The executor will also need to have access to deeds, trust indentures, partnership documents, insurance policies, or other important papers. Ideally, the deceased would have put those together before their death so the executor can find them easily once the time comes. Having these documents in hand can make the estate administration process move much smoother, especially when it comes time to secure and inventory the deceased’s assets.

If the deceased did not have a will, the process is a bit more complex when it comes time to apply for probate and distribute assets. We’ll explain more below.

Prepare funeral arrangements

Now that you have the will and other important documents outlining your loved one's wishes, the next step is to meet with the funeral home specified by the deceased to make funeral arrangements. If no specific funeral home was indicated, you'll need to choose one yourself. During your meeting with the funeral director, request several copies of the death certificate, as these will be required when closing accounts and distributing the estate's assets.

Send out notifications of death

The executor is responsible for sending out notifications of death to service providers such as utility companies, financial institutions, insurance companies, and updating the deceased’s employer as soon as possible. When reaching out to their employer, ensure to ask about any death benefits that were available and how their pension or retirement fund will be handled.

You also must notify the government regarding any benefits the deceased may have received, such as a pension or unemployment. Submitting a notice of death to TransUnion and Equifax and cancelling the deceased’s health card, driver’s license, social insurance number, and passport is also part of this duty. The executor is also required to notify government agencies like the CRA. Note that the funeral home may also handle a number of these notifications, so confirm with them what steps have already been taken.

As part of the notification step, make sure to cancel any ongoing expenses the deceased incurred such as gym memberships, magazine subscriptions, cell phones, streaming services, etc.

Inventory, secure and value all assets

One of the most time-consuming responsibilities of an executor is rounding up the assets of a loved one and documenting them properly. This needs to be done to begin the probate process. Assets that need to be inventoried include:

• Real property (land, home, cottage, farmland)

• Bank accounts

• Insurance policies

• Contents of safety deposit boxes

• Family heirlooms

• Vehicles

• Business interests (e.g. shares in private corporations)

Note that part of securing financial assets such as bank accounts is freezing them. To do so, you may need to provide a copy of the death certificate to the financial institution, along with a copy of the will.

There may also be assets that are not specifically mentioned in the deceased’s will, which is why this step can be so tedious and sometimes requires some detective work. It’s also an emotionally exhausting stage to be in, which is why it can be incredibly helpful to get expert assistance.

As the executor, you have a fiduciary obligation to safeguard and maintain the value of all assets owned by the deceased, including real estate, financial accounts, digital assets, and intangible property. Fulfilling this duty is essential to prevent any loss, damage, or decrease in value before the assets are distributed to beneficiaries.

If the assets drop in value or are damaged prior to distribution due to negligence, you could be held legally responsible. Executors must ensure adequate insurance coverage for assets (e.g. real property, vehicles, boats) remains in place until the assets are distributed or sold.

After the assets of the deceased have been properly identified and secured, many of them will need to be professionally valuated before applying for probate.

Notify beneficiaries

Clear communication with beneficiaries is a key responsibility for estate executors and helps prevent relational stress among family members. Once you've secured and inventoried the assets, promptly inform each beneficiary that they're named in the will, explain their entitlements, outline next steps, disclose if you'll seek executor compensation, and advise them of any issues or delays in the administration process.

If there was no will in place, you will still need to notify the beneficiaries who will inherit portions of the estate under intestacy laws.

Apply for probate

Probate is the legal process of validating the deceased's will in court. As executor, you're responsible for submitting the probate application in the province or territory where the deceased lived. Typically, you'll provide a copy of the will and possibly an inventory of estate assets (requirements vary by province). Once approved, you'll receive a Grant of Probate, officially naming you as the executor and authorizing you to manage, liquidate, and distribute the estate's assets.

Provincial probate fees may also be owed. These fees are based on the total value of the assets, and the rate charged varies between provinces. All provinces except for Alberta and Quebec levy potentially significant probate fees.

Testate vs. intestate

When someone passes away with a will in place (known as being testate) the administration of their estate typically follows the directions in their will. In cases where someone dies without a will or dies intestate, the probate process is a bit different. If they pass away without a will (intestate), the court appoints an administrator, typically the closest relative, to manage the estate. The estate’s assets are then distributed according to the relevant laws of intestacy.

Notify creditors

Once you have formal authority as executor, you should promptly notify potential creditors of the estate, following guidelines specific to your province or territory. Typically, executors publish a formal notice in a local or national newspaper for a set period (often 30 to 120 days), allowing creditors time to present claims against the estate. Proper notification helps protect the executor from personal liability. Creditors who fail to respond within this period may lose priority, and the executor may distribute assets without personal liability; however, creditors may still have recourse against undistributed estate assets.

Open an estate bank account and liquidate financial assets

Following receipt of the grant of probate, the executor must set up an estate bank account. The financial institution you choose to work with will require a death certificate and the grant of probate, verifying your appointment as executor to open an account. This account will ultimately be used to collect and eventually distribute funds to the named beneficiaries, which is why it’s important to have the account in place soon after being officially named executor.

Once opened, the executor is responsible for consolidating the deceased’s assets. They should begin the process of liquidating the deceased’s assets, such as registered accounts, investments, mutual funds, real property, life insurance proceeds and depositing the proceeds into the estate account.

Pay creditors and settle debts

If any creditors came forward as a result of your published notice, they will need to be paid prior to the estate being distributed to the beneficiaries, using funds from the estate account just opened. You must also settle other outstanding debts and expenses, including funeral costs, medical bills, taxes, and any additional liabilities, before proceeding with asset distribution.

File applicable tax returns

The executor must file all required tax returns on behalf of the deceased, including outstanding personal tax returns and a final (terminal) return for the year of death. Additionally, if the estate earns income (e.g., from investments or property) during probate, the executor must also file an estate income tax return.

Distributing assets to the beneficiaries

Once all administrative tasks are complete, the executor typically prepares a final accounting of the estate for the beneficiaries. After the beneficiaries have reviewed and approved this accounting, the executor distributes the estate assets in accordance with the will or, if there is no will, according to intestacy laws. This distribution may involve transferring funds to individuals, donating assets to charities, or establishing trusts as directed by the will.

The executor is responsible for ensuring all required estate assets are distributed to the appropriate beneficiaries. It is good practice to have beneficiaries sign a receipt or release confirming they have received their inheritance.

After all distributions are complete and receipts have been obtained, the executor can proceed to close the estate accounts and formally conclude the administration of the estate.