What is an Executor in Estate Planning?
Estate planning is the process of accumulating and disposing of wealth before the death of an individual or married couple.
The most important goal of estate planning is to make sure that the greatest amount of the estate is passed to the estate owner's intended beneficiaries while paying the least amount of taxes.
I.
Definition An executor in the will, normally is the lawyer or someone who you trust will carry out your intentions in the will after you die.
II.
What is executor responsibility Since you have named someone as your will executor, in general the executor will gather up all your assets and after paying all your debts, he or she will distribute the remaining assets to the beneficiaries.
1.
Paying funeral expenses Funeral expenses are usually paid out from the assets of the deceased, although sometimes the executor considers the wishes of the deceased person's relatives.
2.
Paying all other debts The executor is also responsible to pay off all the debts of the deceased person including all credit cards and charge cards, personal loan, and other debts.
3.
Notify all beneficiaries who are named in the will.
4.
Submit the necessary probate documents to the court to get probate before he or she can handle the deceased's estate.
5.
Notify the government pension office, if the deceased person received pension payment before his or her death.
6.
File the income tax for the deceased person and pay all income tax if owed and get a tax clearance.
7.
Distribute remaining assets to estate beneficiaries.
Remember certain assets do not need to probate such as RRSP and life insurance paid out from life insurance policy.
Please note that there is a 6 month deadline of the Variation Act that allows the deceased child and spouse to apply to court for changing the term of the will.
The most important goal of estate planning is to make sure that the greatest amount of the estate is passed to the estate owner's intended beneficiaries while paying the least amount of taxes.
I.
Definition An executor in the will, normally is the lawyer or someone who you trust will carry out your intentions in the will after you die.
II.
What is executor responsibility Since you have named someone as your will executor, in general the executor will gather up all your assets and after paying all your debts, he or she will distribute the remaining assets to the beneficiaries.
1.
Paying funeral expenses Funeral expenses are usually paid out from the assets of the deceased, although sometimes the executor considers the wishes of the deceased person's relatives.
2.
Paying all other debts The executor is also responsible to pay off all the debts of the deceased person including all credit cards and charge cards, personal loan, and other debts.
3.
Notify all beneficiaries who are named in the will.
4.
Submit the necessary probate documents to the court to get probate before he or she can handle the deceased's estate.
5.
Notify the government pension office, if the deceased person received pension payment before his or her death.
6.
File the income tax for the deceased person and pay all income tax if owed and get a tax clearance.
7.
Distribute remaining assets to estate beneficiaries.
Remember certain assets do not need to probate such as RRSP and life insurance paid out from life insurance policy.
Please note that there is a 6 month deadline of the Variation Act that allows the deceased child and spouse to apply to court for changing the term of the will.
