Executor of a Will

[InTheBum]

Can anyone tell me, what the average fee would be to a lawyer of an Executor of a Will?

Some people suggest 5% of the Will...seems outrageous for doing like 20 to 30 hours of work...

So an Executor would get 50k for a 1 million Will...?????

Also, do you need a lawyer to be an executor? I have been told otherwise, yet, if you screw up as an executor, you are legally responsible...

 

[Cock Throppled]

Co-executors is a very good idea if there is a good relationship and trust between them.

 

[bjluver]

You should really sit down with an estate planner. You would only really need a lawyer if you had a really complex estate involving your own business or lots of complex investments. Otherwise, someone you really trust to carry out your intentions should suffice. The reason why I mention that you should consult with an estate planner is that a lot of assets could be transferred without going through probate (which in BC is very high once the value of the estate exceeds $50k). By naming beneficiaries to certain assets (for example RRSPs), you can avoid having these assets having to go through probate thus minimizing probate fees, executors fees and the chance of a dishonest executor from stealing from your estate.

 

[MissingOne]

What the BC Trustee Act says is that an Executor can't be a named beneficiary of the will, ...

I don't understand this statement. I was the executor and major named beneficiary of my mother's will (I'm an only, so it was simple). I hired a lawyer to help out, but all he got was a very reasonable hourly fee.

Other family members have been both executors and beneficiaries of relatives' wills, and those wills were drawn up by lawyers, so presumably were in compliance with the rules.

I expect that what you wrote is correct in some context, but on the face of it, I find it confusing.

 

[jetsam]

It is amazing how stupid people can get over money they have done absolutely nothing to earn. Think long and hard before you consent to be the executor of someone's estate. It can be much more work than you ever imagined, the word burden springs to mind.

 

[not2old]

It is amazing how stupid people can get over money they have done absolutely nothing to earn. Think long and hard before you consent to be the executor of someone's estate. It can be much more work than you ever imagined, the word burden springs to mind.

Amen.

My sister and I don't speak to this day. I was an executor for a family member where my sister and I (among others) were beneficiaries. I took no fee for being an executor, but the process took 6 months. She felt we were dragging our heels and she wanted her money NOW.

I always thought how fortunate for my sister that the family member died. I wonder what my sister would have done for cash if they this person hadn't died.

 

[FunSugarDaddy]

Clarifications

I read a couple of remarks on here I think are either out and out wrong, or require clarification.

One mentioned who can or can't be an executor, my understanding is that anyone over the age of 18 can be an executor regardless of whether or not they're a beneficary. My understanding is based on the fact, I've actually assisted many people in this situation. As to the validity of the Will, I thought to some extend that was the purpose of probate, but regardless, I don't believe it's the Executor's duty to assume a Will is going to be challenged until such time that it is.

Compensation. My understanding is the maximum amount is 5% of the estate, but you still have to justify whatever it is you wish to be compensated or it could be challenged. If you want closer to the maxiumum amount you're entitled to the estate has to be complex enough to warrant that amount of remuneration. Also if you're a beneficary and an executor, you can still be paid for the work as an executor, but it's taxable income. I also believe the estate has to issue you a T4 and it has to pay of all things, EI and potentially CPP.

Any executor should probaby apply for a clearance certificate if there's any possibility that the deceased has not paid taxes in prior years. The clearance certificate relieves the executor of this potential tax burden.

As for the question of a disabled child and government entitlements, most estate planning options centre around a Henson trust, with is essentially a discretionary trust. I believe one can allocate up to $200K into that account and it's not considered an asset for GAIN benefits. (I haven't reviewed this in a few years so the GAIN name could have changed), meaning a disabled individual could still be entitled for full benefits.

As for someone who doesn't necessarly want to treat family members equal, how about gifting things prior to death, it seems to me that would be the most practical way of dealing with it. Or have some life insurance with the beneficaries you wish to give preferential treatment to. In otherwords, if you do want to treat family members differently, it's best to do so while you're alive and then hopefully avoid to the whole issue of being unfair in your Will. And as for the life insurance, that's on an estate asset, so it again avoids the issue of unfairness.

Anyway that's my 2 cents worth.

 

[wilde]

Very good info from FSD and alin. I would just add that an executor is also responsible to file all outstanding tax returns of the deceased including all years prior to the year of death and the date of death and 3 optional (if applicable) returns.

Executor's fees are taxable, CPP pensionable but not EI insurable.

Executor is responsible for filing all the estate (trust) tax returns until the trust is wound up. After which the executor can apply for a clearance certificate to absolve him/her from any further tax liabilities.

 

[the old maxx50]

Through the years the family has talked about many of the points brought up here , In the case of my grand father dying he had three daughters that inherited his house ,, One daughter was the executor of the will and got a lawyer to fill in court papers and she made sure that there were no more taxes owned from a n incident 20 yrs earlier .. My dad bought the house from the estate at a reasonable price and know one objected because he had sold it to my gran-dad original so they would have a place to live They divided the money equally and that that was that .

Now with my moms estate .. My sister and i are are the only beneficiaries and i am the executor .. we also share power of attorney which we are exercising at this time. My sister has a joint bank account with my mom which is for her general expenses and we are in the proses of selling my moms home because she now is in assisted living .

My mothers estate will all be in cash ... and some of it will be handed out to the two of us before she passes away . it makes things a lot easier and no probate fees

 

[FunSugarDaddy]

The one thing I will say about estate planning in general is that far too much focus is put on the issue of avoiding probate fees, which are far less than people think. (ie $14 per $1,000 of assets).

And the other point regarding estate planning is don't have your will in a safety deposit box unless someone else besides yourself has authorization to the box. Otherwise you get in a situation where an executor says "look I'm the executor of x's will, but I can't prove it because the will's in the safety deposit box, now if you'll just open it up, I'll show you". Trust me, that ain't going to work.

And, don't confuse a will with a Power of Attorney (POA), people get these mixed up.

The POA ends upon the death of an individual and a will kicks in upon death. One is not a substitute for the other.

Just goes to show you how much I read. I think Al covered everyone of these points in his post above.

 

[FunSugarDaddy]

FunSugarDaddy mentioned Henson Trusts http://en.wikipedia.org/wiki/Henson_trust Not one of the experts that I consulted with mentioned them as the solution to the problem of a disabled person that you want to provide for without screwing up their provincial medical benefits or their care giver arrangements.

Thanks Al, does that mean I get to bill someone?..lol

 

[the old maxx50]

Yes power of attorney does expire up on the death of the person .. But it is the most powerful instrument in handling the estate when the person is a live It should only be given to those that you trust ..

The situation in many estates there is this old mentality that of inheriting after death .. . The smart rich seldom do it that way .. usually much of there business stocks have been transferred to those that they want to have them and trust funds have been set up that the are all ready paying out ' Why have people hoping and wishing for your death Or a worry that some one is going to get more then them . But with some it seem to still be about control over others
I find it really quit sad .. When some one has all that they need .. it does not hurt to help out the rest of the family when they need it now rather then later ..
True if they don't do well with your help it will be all gone when you die .
Selling property before person dies and distributing money and assets is a smart thing to do as long as there is enough to allow for a descent live and care of the parent , The fact that the power of attorney is being used mean that the individual is impaired in some way already and as long as every one is willing to make sure that a standard of care is maintained .. it is the best thing to do .

 

[FunSugarDaddy]

Good post, very informative. And while I agree with your comments about a POA I don't think you need to be knocking on death's door before you either have one or necessarily use one. Someone could also be in an accident, suffer a serious illness or simply be travelling. I've had both my POA and my will done when I was in my early 30's, had my wife's done at the same time, then I let those who need to know about it where they are located, and just file it away, and hope it's not needed. So far, so good.

Yes power of attorney does expire up on the death of the person .. But it is the most powerful instrument in handling the estate when the person is a live It should only be given to those that you trust ..

The situation in many estates there is this old mentality that of inheriting after death .. . The smart rich seldom do it that way .. usually much of there business stocks have been transferred to those that they want to have them and trust funds have been set up that the are all ready paying out ' Why have people hoping and wishing for your death Or a worry that some one is going to get more then them . But with some it seem to still be about control over others
I find it really quit sad .. When some one has all that they need .. it does not hurt to help out the rest of the family when they need it now rather then later ..
True if they don't do well with your help it will be all gone when you die .
Selling property before person dies and distributing money and assets is a smart thing to do as long as there is enough to allow for a descent live and care of the parent , The fact that the power of attorney is being used mean that the individual is impaired in some way already and as long as every one is willing to make sure that a standard of care is maintained .. it is the best thing to do .