Acting as an executor of an estate can involve a great deal of responsibility, stress and time commitment.

Anyone who is named as an executor in a will, or who is asked to be an executor, should carefully consider whether they are up to the task.

A named executor may decline appointment as executor, provided they have not begun to administer the estate.

Once a named executor has begun taking steps to administer an estate, it becomes very difficult for that individual to renounce their executorship.

Named executors are permitted to gather information about the estate before accepting or declining appointment. These preliminary steps are not considered as steps taken to administer the estate. In other words, a named executor may gather information about an estate and then decline the appointment, without assuming the liability that comes with acting as executor.

Below we list a few things to consider when deciding whether to accept appointment as an executor:

• are you comfortable with incurring liability? Executors have a fiduciary duty to administer the estate in the best interests of the beneficiaries and can be held liable if they breach this duty;

• is the estate especially large or complex? If so, the would-be executor should consider whether they can handle the workload;

• an executor may seek the advice of professionals including estate lawyers, trust companies and accountants to assist with administering the estate;

• what are the family dynamics? If there are signs that one or more beneficiaries may be difficult or litigious, trouble could lie ahead;

• are there co-executors? Co-executors can divide responsibilities, making administration easier. However, when one executor causes an error, the other co-executors may be held responsible. Further complicating matters is the requirement of unanimous approval from all co-executors for administrative decisions;

• is the estate insolvent? Dealing with multiple creditors and beneficiaries will likely be a complex and litigious ordeal;

• is there a conflict of interest? Someone who has a claim against the estate (for example, a surviving spouse seeking dependant’s support) cannot also act as the executor; and

• can you cover the estate’s short-term expenses? Executors may have to pay expenses in the interim until they can be reimbursed by the estate.

Thank you for reading and have a great day!

James

Source: Rudy Mezzetta, “Do executors have to accept the role? What to know before administering an estate”, Advisor’s Edge (18 August 2023), online.