Your estate needs the right people managing it. Some opt for two or more “co-executors” to help with this. In this blog post, we outline the pros and cons of these arrangements.
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What Is a Co-Executor of a Will?
In Canada, co-executors of a will share your estate’s responsibilities. Their main goal is to make sure everything runs as you expect. This includes ensuring your assets go to the right people.
This arrangement gives equal weight to each co-executor. The people you choose usually have complementary skills. They typically need to agree, but it’s possible for three or more to reach a majority vote.
Pros of Choosing Co-Executors for a Will
You need to know the pros and cons of co-executors before setting up this type of arrangement. With this in mind, here are the main benefits:
Shared responsibilities: Managing an estate takes time. Multiple executors sharing the load could sort everything out much faster.
Balanced decision-making: If there are any uncertainties in your will, a second opinion always helps. This will clarify your intentions.
Accountability: Similarly, several executors can monitor each other’s actions. They can make sure nobody exploits the situation for their own gain.
Broader skills: Co-executors with the right skills will help the whole process. One might have experience with estate planning for digital assets, for example.
Continuity: A co-executor may fall ill or be incapacitated. Other co-executors can simply continue managing the estate.
Cons of Choosing Co-Executors for a Will
However, this process also comes with a few shortcomings. Here are five potential drawbacks a co-executor team may have to navigate:
- Potential for conflict: With several people administering the will, there can be a number of disagreements. These might lead to serious delays.
- Logistical challenges: The co-executors will need to agree on virtually everything. With different schedules, acquiring everyone’s signatures takes time.
- Increased legal complexity: Co-executors may need help navigating this arrangement. If they hire a professional, this adds to their legal fees.
- Joint liability: If one co-executor makes a mistake, the whole team is liable. This could throw the whole will into dispute.
- Family tensions: The co-executors might be from different branches of the family. They may have tensions that slow everything down.
Responsibilities of Co-Executors in Canada
Here are some of a co-executors’ responsibilities in Canada:
- Identifying/securing a person’s assets.
- Dividing their assets as instructed.
- Filing probate paperwork if necessary.
- Notifying the estate’s beneficiaries.
- Maintaining accurate estate records.
- Responding to any legal challenges.
If there are any debts in the estate, co-executors must settle these. They’ll then have to obtain a clearance certificate from the Canada Revenue Agency. This proves they can then distribute the assets.
You should only pick co-executors who understand these responsibilities. Otherwise, you cannot guarantee they will handle your estate in the right way.
Factors to Consider When Choosing Co-Executors
If you opt for co-executors, you have to choose them carefully. It’s not as simple as selecting which family members you are closest to. Here are the main factors to take into account:
Trust and compatibility: You must trust your co-executors to fight for your interests. In addition, they must be able to work as a team.
Skills and expertise: Your co-executors should have different skill sets. One might have experience managing complex legal cases, for example.
Availability and willingness: Executing a loved one’s will is often stressful. Check that your choices are able to perform their duties.
Are Co-Executors Right for your Will?
Munro & Crawford’s lawyers have experience in managing complex estates of all kinds. To learn how to set up co-executors of a will in Canada, contact us today.
