This article was originally published by Law360 Canada, part of LexisNexis Canada Inc.
When it comes to estate planning, choosing an executor is important. However, it’s not just about the person; it’s about ensuring they have the necessary tools to carry out your wishes. You need to identify the information, documents, and contact names your executor will need to ensure the future of your estate and interests of your beneficiaries are well taken care of. Creating a file folder, digital or otherwise, to hold the information you gather is a great place to start.
Even between spouses, there may not be a shared understanding of the key contacts and important information. The same is true for other family members or friends appointed as executors. In an era when fewer and fewer people rely on regular mail and printed documents, chasing down important information can be a considerable complication at what is already a difficult time.
Taking a step back, let’s consider some of the items an executor might need knowledge of or access to, such as:
- Funeral agreements
- Bank accounts and investments
- Life, home, and auto insurance policies
- Household bills, such as hydro and water
- Real property and vehicle ownership
- Debts and liabilities, such as mortgages and credit cards
- The deceased’s professional advisers, such as lawyers, accountants, or insurance agents
- Safety deposit boxes or a safe.
Knowing which bank, financial advisor, or insurance broker to contact goes a long way. The executor will then need to prove their authority to access the information, but finding the correct contact is vital.
It’s essential that you have a will (or power of attorney), and that it’s reviewed and updated as necessary over time. It’s also important that your executor knows where to find it. Wills are often held at a lawyer’s office; your executor or trusted family and friends should know where.
I’m often asked whether clients should provide copies of their documents to their named power of attorney or executor. In most cases, I suggest they don’t. For one thing, they may change their mind, which would require updating the documents and collecting copies of the earlier versions. There is often no upside to providing copies, and doing so can create unnecessary confusion.
However you choose to collect and organize your information, you should update the details regularly and keep it where the people who need to see it can do so in a timely manner. One option is to create a list of documents and key contacts, and have it filed with the will at your lawyer’s office, making it available to the executor when they access the will. This would work for general information, but you may need to manage passwords to digital assets such as email accounts or social media profile which may need to be managed in other ways as they require frequent updates.
Anything you can do now to organize your affairs and prepare for what is to come will help your family, friends, and executor. Being confident in the administration of your estate will be a comfort to them when they are grieving and likely overwhelmed by the role.
Identifying the information required and how best to organize it is crucial to ensuring that your executor carries out your wishes. I encourage you to speak with a lawyer who can help you decide what you need to compile, prepare, or update for your estate plan.
About Hilary Leitch
Hilary Leitch is a Partner in the Business Law, and Wills and Estates Groups at Lerners LLP in London, Ontario. Her wills and estates practice focuses on estate planning and administration, including business succession planning, and family trusts. Hilary particularly enjoys working with individuals, business owners and families to plan for transition and succession across generations.
