Benefits of a Professional Executor

jenna.carvalho

Benefits of a Professional Executor

Acting as an executor for your estate entails a lot more than cleaning out storage units and signing documents. Managing the duties of an executor and bearing the associated responsibility is complex, time-consuming, and requires specific legal and financial knowledge.

As opposed to a family member or close friend, many Canadians elect to appoint a professional estate executor. Let’s take a deeper look at the role of an executor to understand better why professional services are currently experiencing a growth in demand. 

Complexity & Expertise

Estates are becoming increasingly complicated, and without technical knowledge and experience, an executor will have an overwhelming task on their hands. Today estates can include cross-border assets, private corporations, farmland, rental properties, and unique assets or investments that require extensive planning and tax considerations. In some cases, minors or children with special needs must be provided for through trusts. 

Administering an estate plan is a highly intricate and multidimensional process that involves niche legal and financial skills. The role of an executor requires constant communication with beneficiaries, quantifying and distributing of assets, and the ability to navigate legal and financial parameters. 

A professional executor has the knowledge, experience, and capability to ensure an estate is administered seamlessly, tax efficiencies are capitalized on, and the maximum value is attained.

Conflict

Appointing a family member or friend as executor is a well-intentioned choice that many believe will be received with honor and performed as expected. However, the reality is that it is common to see family conflicts arise or underlying issues surface when an executor is someone inside that immediate circle. It puts an immense amount of pressure on that individual and makes them an easy target for criticism and blame.

Professional executors bring a non-biased presence to the administration of the estate. Their actions and decisions will be taken based on knowledge and logic to maximize the estate’s value and adhere to the specified requests. When necessary, they will act as an intermediary between family members or beneficiaries, which can drastically reduce conflict. 

Dealing with an estate is an already sensitive and emotionally draining task for those closest. A professional executor provides impartiality and efficiency to the situation allowing family and friends to grieve and move forward.

Proximity 

It is not ideal to appoint an executor who is located far away from the estate. The administration will likely be complicated and prolonged if the executor resides in another province or country. Communication can also be a challenge if individuals are in different time zones, and there are some aspects of an estate that are handled more effectively in person.  

Appointing a professional executor near you will mitigate these challenges, allowing the estate to be facilitated efficiently.

Commitment & Reliability

The time commitment required as an executor is often drastically underestimated. The average estate takes anywhere from 12 – 24 months to administer, and it places significant demands on the executor. Additionally, there will always be a degree of uncertainty as to whether the selected individual will assume this role when the time comes effectively or willingly. 

Appointing a professional to act on your behalf ensures that you will have a qualified party ready to step in when needed.

Responsibility

Most people do not realize that executors face significant legal responsibilities. An executor is personally liable for their actions throughout the estate administration. This means that if any mistakes or omissions are made, the executor’s personal assets are potentially at stake, not necessarily the estate’s assets. This responsibility often creates far too much pressure, stress, and risk for a friend or family member to bear. 

Professional executors have the necessary knowledge and experience to make essential decisions acting in the estate’s best interest. Their profession equips them with the skills and resources to confidently assume these legal responsibilities. 

Leave it to the Professionals

With a better understanding of the level of complexity and responsibility that an executor faces, it should be no surprise that more and more Canadians are choosing to appoint a professional to administer their estate. 

Guardian Estate Company specializes in connecting clients with professional executors and trust companies. We utilize our industry network to source competitively priced and reliable estate solutions. If you are in the process of planning your estate or considering appointing a professional executor, Guardian Estate Company can assist. 

Contact us to learn more.

The above is intended for informational purposes only. It is not legal or financial advice. We accept no liability for any losses arising from use of the above information. We recommend you speak to your lawyer regarding your unique situation.