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Escarpment Magaz ine Winter
2012
MY FIRM
put together this very useful list for executors. Executors are responsible for a variety of tasks ranging
from funeral arrangements to filing income tax returns with the Canada Revenue Agency (CRA), to the final distribution
of estate assets. If you are appointed Executor, our Task List will provide you with some guidance by describing the
types of duties you will be required to perform.
Preliminary Arrangements
1. Obtain deceased’s identification and credit cards.
2. If the deceasedwas employed at the date of death, advise their employer of their death.
3. Locate their most recent Will and any codicils or memoranda.
4. Obtain six to 10 notaries copies of theWill.
5. Arrange the funeral service and burial/cremation.
6. Obtain six to 10 original death certificates from the funeral home and from the Directeur de
l’état civil inQuebec.
7. Review the deceased’s financial affairs and begin a list of relevant information. Complete
the list as information becomes available and update it as required.
8. Provide the beneficiaries named in theWill with a copy of theWill or relevant portions.
9. Satisfy yourself that the estate is solvent. If it may not be solvent, do not proceedwithout pro-
fessional advice.
10. Take steps tomeet any immediate financial needs of the deceased’s dependants.
11. Review theWill withaprofessional anddiscusswhether probate is required. If it is, arrange
the necessary court application andpayment of probate fees.Where there is noWill, arrange
for completion of the application for Letters of Administration, and payment of court fees. In
Quebec, a declaration of heredity is required inmost cases. At aminimum, a preliminary valu-
ation of the estate is necessary to complete this step.
Securing the Assets
12.Where the deceased carried on business as a sole proprietor or as the owner-manager of
a corporation, make arrangements for the business to continue and/or for the security of all
physical assets and documents.
13. Redirect the deceased’s mail to your address.
14. Arrange safe storage of personal valuables and important documents.
15. If the deceased’s home will be vacant, advise police and insurance company and check
the property frequently.
16. Reviewproperty insurancearrangements, maintainingappropriate coverageandarrang-
ing any necessary newor additional coverage.
17. Cancel any leases, health insurancecoverage, driver’s license, cable, telephone, clubmem-
berships, subscriptions, credit cards, professional memberships, and arrange for payment of
any refunds.
18. Advice Canada or Quebec Pension Plan, Old Age Security Plan, Veteran’s Pension and
employer-sponsoredpensionplans of thedeceased’s death, aswell as applicableprofessional
groups and associations as required.
19. If the deceased received benefits under a private insurance policy, contact the insurer to
advice of the deceased’s death, and arrange payment of any sums owing under the policy.
20. If thedeceasedwas receiving spousal support or support for achild froma spouseor former
spouse, advise the spouse or the spouse’s solicitor, of the death.
21. If thedeceasedwas the soleor aCo-Executor of anestatewhoseadministration is not com-
plete, or the sole or a Co-Trustee of a trust, advise the Co-Executors or Co-Trustees of the de-
ceased’s death and obtain professional advice as towhether you have any responsibilities.
Assembly, Inventory and Valuation of the Estate
22. Open a bank account for the estate.
23. Obtain a valuation as of the date of death of all assets.
24. Determine the adjusted cost base for tax purposes of each capital property.
25. Close all of the deceased’s bank accounts, including business accounts, if the deceased
was a sole proprietor of a business, and transfer all balances into the estate bank account. As-
certain for each account the balance at the date of death and the interest accrued to the date
of death.
26. Contact employer(s) toarrange for payment toyou, for deposit to theestatebank account,
of amounts payable to the estate as wages or under employee pension plan(s) of which the
deceasedwas amember.
27. Apply for CPP/QPP death benefit. Assist with the application for CPP/QPP survivors’ ben-
efits for eligible dependants, if any.
28. Clear and close the deceased’s safety deposit box.
29. If the deceasedwas in abusiness partnership, obtain a copy of the partnershipagreement
to ascertain the estate’s entitlements and liabilities.
30. If the deceased owned shares in a private company, obtain a copy of any shareholders’
agreement to ascertain the estate’s rights and responsibilities.
31. Contact life insurance companies to arrange for payment to you, for deposit in the estate
bank account, of life insurance proceeds payable to the estate.
32. Where the deceased owned a policy of insurance on the life of another person, contact
the insurer toascertain if there is anaccruedcash-in valueandwhether thepolicy is transferable
by you as Executor.
33. Have transferred to your name as Executor (or Trustee, if applicable) title to all real estate
personally owned by the deceased, and advise all holders of mortgages or other encum-
brances of your name and address.
34. If the deceased held amortgage on another person’s property, obtain a copy of themort-
gage document, consider your options for realizing this investment, and advise themortgagor
tomake all future mortgage payments to you.
35. Consider whether any RRSPs/RRIFs of the deceased are to be rolled over to a spouse or
other eligible dependants.
36. Contact all financial institutions and investment advisors tohave transferred intoyour name
as Executor (or Trustee, if applicable) allGIC, investment accounts, bonds, stocks, andother in-
vestments andnotifyall disbursingagents of your nameandaddress for receipt of distributions.
37. If the deceasedwas a party to any legal proceedings outstanding at the date of death, or
if the cause of death gives rise to any legal claimor liability, retain and instruct counsel with re-
spect to the proceedings.
38. Collect any debts or payments on debts owing to the deceased, in accordance with the
terms of suchdebts, includingpromissorynotes, theaccounts receivableof a soleproprietorship
and, if appropriate, partnership and, for the corporation’s account, the accounts receivable of
a corporation of which the deceasedwas the owner/manager.
39. If the deceased was a capital beneficiary of an estate or trust not yet distributed, or an in-
come beneficiary of an estate or trust, contact the Executor(s) and/or Trustee(s) to advise them
of the deceased’s death and to obtain a copy of theWill or trust document. Ascertain any out-
standing entitlements.
40. Considerwhichassets shouldbe sold/liquidatedandwhich retained, andact accordingly.
Paying Debts, Legacies and Tax Compliance
41. If it appears the debts and liabilities in the estatewill exceed the assets in the estate, obtain
professional advice to ensure you divide available assets appropriately among the various
creditors of the estate, or to file for bankruptcy.
42. Advertise for creditors, in accordance with the applicable law. Include an advertisement
for any appropriate business or trade names.
43. Pay balances on all credit cards, lines of credit, utility accounts, and debt owing to other
creditors, including judgment creditors.
44.Where thedeceasedwas a soleproprietor of abusiness, ensure that all tradeor commercial
debts arepaid.Where thedeceasedwas inpartnership, ensure thedeceased’s liabilities have
been fulfilled.Where thedeceasedwas anowner of acorporation, check to see if anypersonal
guarantees for debts of the business were given by the deceased, and obtain releases on the
guarantees if possible.
45. Determine the deceased’s income for the year until the date of death, including capital
gains/losses, both realized and deemed.
46. Determine the tax obligations in Canada and elsewhere, if assets were held by the de-
ceased outside of Canada.
47. Ensure thedeceased’s obligations under anymarriagecontracts, cohabitationagreements,
loan agreements, promissory notes, paternity agreements, separation agreements or court or-
ders are paid or provided for. Obtain appropriate releases.
48. Ensure that the time for dependants to make claims for support from the estate and/or for
the spouse of the deceased tomake a claim for a division of matrimonial property has expired
or that such claims have been resolved by court order or settlement, and paid, before final dis-
tribution.
49. Pay all legacies. Transfer specific bequests to beneficiaries. Pay amounts to which minor
beneficiaries and incompetent adult beneficiaries are entitled to their proper representatives, if
any. Obtain a receipt from each beneficiary. Consider making an interim distribution to resid-
uary beneficiaries depending on the value of the estate and the status of claims.
CHECKL I ST FOR EXECUTORS
IN CONVERSATION
escarpment
finance - your wealth
BY J. PETER HODGSON CFA