Role of Estate Trustee

An estate trustee (also known as an executor) is a person who is responsible for administering a deceased persons estate as set out in their will (if there is one) and in accordance with the law. They are either appointed by being named in the will, and more than one estate trustee can be named, or appointed by the court where the deceased did not have a will.

Fiduciary Obligations

An estate trustee has five fiduciary obligations:

  1. Duty of care (the standard of which a reasonable and prudent person would exercising in conducting the business of their own affairs)
  2. Duty to act personally (cannot delegate their responsibilities, but can seek advice)
  3. Duty to avoid conflicts of interest
  4. Duty to act solely for the benefit of the beneficiaries (and treat all beneficiaries equally and fairly)
  5. Not profit personally from the administration of the estate

Responsibilities

Just because you are named an estate trustee in a will, does not mean you are required to act in that role. Administering an estate is a big responsibility, and you should consider whether or not you have the time and patience that is required to execute the duties that are associated with this role.

If you decide to act, you will be responsible for:

  • winding up the affairs of the deceased
  • paying taxes (including income tax and obtaining a clearance certificate from Revenue Canada), bills, and any other debts
  • collecting the estate assets and selling them, if necessary, and after taxes, bills and debts have been paid, then finally distributing the residue of the estate to those who are entitled to it (ie. beneficiaries)
  • administering the estate in a timely fashion (1 year from decedents death)

Choosing a Trustee

It is important during the process of estate planning that you select your estate trustee wisely. Things to keep in mind when making this selection is, finding someone that will be available, capable, reliable, and financially responsible. As long as your trustee is over the age of 18 years old and is mentally capable, you can choose a spouse, child, friend, relative, lawyer, or even a trust company.

Connect With Suzanne Desrosiers Professional Corporation

If you are looking for guidance or have any questions about estate planning or how to execute an estate as a trustee, please feel free to reach out to Suzanne Desrosiers Professional Corporation by calling us at (705) 268-6492 or emailing us at info@sdlawtimmins.com and we would be more than happy to help!