Executor (continued)
Assets and Liabilities
The Executor will have to find the value of the deceased's assets and liabilities. This will depend on a number of factors, including the deceased's age, their marital status, the number of dependants, occupation and employment status.
The Executor should contact the companies who looked after the deceased's financial affairs, such as the bank or other financial institutions, insurance companies or brokerage firms and ask for a written reconciliation of each account.
Locate and obtain title documents for real estate, mortgages, share certificates, bonds, debentures and guaranteed investment certificates. Then arrange valuations of the real estate, securities, personal property and automobiles. Finally confirm outstanding balances on credit cards and other major accounts.
The Executor should open an estate bank account into which sufficient monies should be placed to begin the settlement of all claims and debts and distribution of assets once the value of each of has been determined.
Tax Implications
Under the Income Tax Act The Executors responsibilities include the following:
- Filing all required tax returns for the deceased
- Making sure all taxes owing are paid
- Letting beneficiaries know which of the amounts they receive from the estate are taxable.
There are Information Sheet that Revenue Canada has provided that contain the basic information the Executor should know in order to start settling the estate. Copies may be obtained from your funeral director. For more information, the tax guide entitled "Preparing Returns For Deceased Persons" is available from your local tax services office.
Probate
In order to administer the estate, the Executor must apply to the Registrar of the Supreme Court for a grant of probate verifying the validity of the Will. Once granted, sufficient true copies of the Will should be obtained to begin transferring assets.
Please Note:
This information is provided only as a general guide.
It is not intended to be all encompassing. The more complex the estate, the more the Executor will be required to do. You can seek further information and advice form Law offices, trust companies, and accounting firms.