Popular author and Senior Wills and Estate Planner, Lynne Butler tackles the rarely discussed personal liability of appointed executors.

Popular author and Senior Wills and Estate Planner Lynne Butler offers her latest in an ongoing series of estate planning advice. In this title, Ms. Butler tackles the rarely discussed personal liability of appointed executors. Personal liability is the biggest risk that estate executors and administrators can face, sometimes resulting in long drawn out dissolution of estates that can even trump the value of the initial estate. Understanding how to avoid the pitfalls through this process means that you can enjoy the benefits of being a benefactor exactly as intended in the will. Beneficiaries will also find this book useful, when they want to understand better what an executor can and cannot do.

Introduction xiii1 General Laws and Rules for Executors 11. Where Does It Say That? 12. An Executor Is a Type of Trustee 23. An Executor Is a Fiduciary 34. Common Law 55. Summary of the Executor’s Responsibilities 56. Specific Language in a Will 67. The Executor’s Powers Provided by the Will 72 An Executor Must Follow the Will 91. Making the Will “More Fair” 92. Giving Personal Items to Those Not Entitled to Them 10Contentsiv How Executors Avoid Personal Liability3. Not Following Trust Instructions 114. Ignoring Parts of the Will 125. Acting while the Testator Is Still Alive 133 An Executor Must Obtain Valuations 151. Selling Major Assets below Market Value 162. Selling Household Items 173. Acceptable Methods of Sale 184. Calling on Experts 195. Selling to Beneficiaries and to the Executor 194 The Executor Must Communicate with Beneficiaries 211. Showing the Deceased’s Will to Family Members 222. Proactive Communication 245 The Executor Must Not Mismanage Estate Assets 271. Mingling Estate and Personal Funds 272. The Executor’s Estate Bank Account 283. Investing Excess Cash (or Not) 293.1 Investing foolishly 304. Not Protecting Assets 315. Paying the Wrong Creditors 326 The Executor Should Get Professional Helpwith the Estate 351. Be Reasonable 362. Asking the Court for Help 373. Wording in the Will 374. Matters in Dispute 397 The Executor Must Keep Proper Records 411. Original Paperwork 422. Pay Bills and Taxes before Paying Beneficiariesand Yourself 433. Setting up a Ledger 44Contents v8 The Executor Must Know the Law 471. Loans, Gifts, and Advances Made by the Parents 472. The Limitation Period for Dependent Relief Claims 513. Intergenerational Joint Assets 529 The Executor Must Remain Neutralbetween Beneficiaries 551. The Even-Hand Rule 562. Favouritism, or the Appearance of It 5610 The Executor Must Finish the Estate inReasonable Time 591. The Executor’s Year 602. The Court’s Position 613. Interim Distribution 6211 The Executor Must Handle Lawsuits Properly 671. Not Prosecuting a Third Party in Time 681.1 Unreasonable prosecution on behalf of the estate 702. Improper Settlements 7012 The Executor Must Provide a Proper Accounting 731. Statement of Receipts and Disbursements 752. Statement of Proposed Executor’s Compensation 763. Statement of Proposed Distribution 774. How to Calculate Your Compensation 785. Which Expenses You May Claim 826. How and When to Pay Yourself 8313 What Factors Are Considered by the CourtsWhen Reviewing Cases 851. Size and Impact of the Error 862. Personal Benefit by the Executor 863. Good Faith 864. Overall Conduct 875. The Beneficiaries’ Petition 886. Beneficiary Acquiescence 88vi How Executors Avoid Personal Liability14 Possible Consequences for an ExecutorWho Makes a Mistake on an Estate 911. Court-Imposed Deadlines 922. Requirement to Account to Beneficiaries 933. Requirement to Pass Accounts 944. Reduction of the Executor’s Compensation 945. Removal of the Executor 956. Requirement to Repay the Estate Personally 966.1 Order of costs/legal fees 967. Contempt of Court 968. Criminal Charges 9715 Issues Specific to Estate Administrators 991. Funeral, Burial, or Cremation Arrangements 1002. Preparing an Inventory 1003. Applying for the CPP Death Benefit 1024. Advertising for Creditors 1025. Listing the House for Sale 1026. Intestacy 10316 Co-executor Liability 1051. Renunciation 1062. Legal Protection 10717 More Ways to Protect Yourself 1091. Direct the Deceased’s Mail to Your Address 1092. Advertise for Creditors and Claimants 1103. Executor’s Insurance 1114. Hire a Trust Company As Agent 1135. Get a Tax Clearance Certificate 114The Download Kit 117Samples1. Executor’s Ledger (Blank) 452. Executor’s Ledger (Filled-In) 463. Statement of Proposed Distribution 64Contents vii4. Statement of Receipts and Disbursements 765. Statement of Proposed Executor’s Compensation 786. Statement of Proposed Distribution 797. Asking for a Tax Clearance Certificate (Form TX19) 116