Essential Tips for Choosing the Right Estate Executor

Denika Heaton BBA, JD, TEP, CEA - Tax and Estate Planning Specialist, Private Wealth 

Chris Hanley CPA, CA, CFP - Tax and Estate Planning Specialist, Private Wealth 

Selecting an estate executor is one of the most critical decisions in estate planning, yet it's often given insufficient consideration. The person you choose will be responsible for carrying out your final wishes, managing your assets, and ensuring your beneficiaries receive their inheritance according to your Will. With the average estate administration taking 12-18 months, choosing the wrong executor can lead to costly delays, family conflicts, and unnecessary stress for your loved ones. These helpful tips will guide you through the essential qualities to look for in an executor and explore your options beyond traditional family appointments. 

Qualities of an Effective Executor 

The choice of executor is vitally important. Your executor should be: 

• Willing to serve - This seems obvious, but ensuring your chosen executor is actually prepared to take on this responsibility is crucial
• Trustworthy and responsible - They'll be handling your most important affairs and assets
• Equipped with business and/or legal knowledge - Understanding of financial and legal matters will be beneficial
• A Canadian resident - This has important tax implications for your estate
• Capable of sound judgment - They'll need to make complex decisions under potentially stressful circumstances
• Flexible enough to handle the role's responsibilities - Estate administration involves many moving parts and unexpected challenges
• On good terms with your estate beneficiaries - Existing conflicts can complicate the administration process.

Consider choosing an executor who won't face conflicts between their role as executor of your estate and any conflicting personal interests in your estate, such as being a beneficiary themselves. 

Types of Executors to Consider 

Your executor options can extend beyond family and close friends to include:

Professional  (lawyers and accountants) or Corporate Executors (trust companies) offer expert, impartial, and continuous administration of your estate. They can serve either alone or as co-executors alongside family members or friends. Consider these options, particularly if your estate is complex and involves multi-jurisdictional assets or challenging legal and/or tax issues. 

This professional approach can be especially valuable when: 

• Your estate involves business interests or complex investments
• You have assets in multiple jurisdictions
• Family dynamics might complicate administration
• You want to ensure continuity regardless of personal circumstances 

Importance of Alternate Executors

Naming sufficient alternate executors is essential to your estate plan. Alternate executors serve as a backup when your primary executor is unable or unwilling to fulfill their duties, helping safeguard the interests of the estate and its beneficiaries. This crucial element of estate planning ensures smooth estate administration while preventing potential delays and complications. 

Your primary executor might be unable to serve due to: 

• Death
• Incapacity
• Change in residency
• Bankruptcy
• Unwillingness to serve 

Naming multiple alternate executors ensures a qualified successor is ready to assume responsibilities without court intervention. If no alternate is named or willing and able to act, courts may need to appoint an estate administrator—a process often both time-consuming and costly. For optimal planning, designate several alternates, particularly including individuals from younger generations. 

Making the Right Choice for Your Estate

Choosing the right executor requires careful consideration of both their qualifications and your estate's unique needs. Whether you opt for a family member, professional executor, or co-executor arrangement, the key is ensuring they have the skills, availability, and commitment necessary to honour your wishes. Remember, naming multiple alternate executors is equally important—it's your insurance policy against unforeseen circumstances. As you develop your estate plan, discuss these executor considerations with your legal counsel and investment counsellor to ensure your choice aligns with your overall wealth transfer strategy. 

Disclaimers:

This communication is an overview only and it does not constitute financial, business, legal, tax, investment, or other professional advice or services. It is not intended to be a complete statement of the law or an opinion on any matter. If you (or any of your family members) are a U.S. citizen, hold a U.S. green card, or are otherwise considered a U.S. resident for U.S income/estate tax purposes, the Canadian and/or U.S. tax implications could be substantially different from those outlined herein. No one should act upon the information in this communication as an alternative to legal, financial or tax advice from a qualified professional. No member of Mawer Investment Management Ltd. is liable for any errors or omissions in the content or transmission of this email or accepts any responsibility or liability for loss or damage arising from the receipt or use of this information. 
 
While we endeavour to ensure that the information in this communication is correct, we do not warrant or represent its completeness or accuracy. This communication is not updated, and it may no longer be current. To the maximum extent permitted by applicable law, we exclude all representations, warranties and conditions relating to this communication. 
* 
Mawer Investment Management Ltd. provides this publication for informational purposes only and it is not and should not be construed as professional advice. The information contained in this publication is based on material believed to be reliable at the time of publication and Mawer Investment Management Ltd. cannot guarantee that the information is accurate or complete. Individuals should contact their account representative for professional advice regarding their personal circumstances and/or financial position. This publication does not address tax or trust and estate considerations that may be applicable to an individual’s particular situation. The comments are general in nature and professional advice regarding an individual’s particular tax position should be obtained in respect of any person’s specific circumstances. 

Disclaimers:

This communication is an overview only and it does not constitute financial, business, legal, tax, investment, or other professional advice or services. It is not intended to be a complete statement of the law or an opinion on any matter. If you (or any of your family members) are a U.S. citizen, hold a U.S. green card, or are otherwise considered a U.S. resident for U.S income/estate tax purposes, the Canadian and/or U.S. tax implications could be substantially different from those outlined herein. No one should act upon the information in this communication as an alternative to legal, financial or tax advice from a qualified professional. No member of Mawer Investment Management Ltd. is liable for any errors or omissions in the content or transmission of this email or accepts any responsibility or liability for loss or damage arising from the receipt or use of this information.

While we endeavour to ensure that the information in this communication is correct, we do not warrant or represent its completeness or accuracy. This communication is not updated, and it may no longer be current. To the maximum extent permitted by applicable law, we exclude all representations, warranties and conditions relating to this communication.