New research reveals that many are lacking in awareness of their responsibilities as executors of a will. An executor is someone who is named in a will to take care of a person’s estate and affairs when they pass away.
Canada Life, who commissioned the research, found that around one in six (16%) are currently named, and separately almost one in five (19%) have previously acted as an executor of a will as well.
Despite more than four fifths (84%) of these individuals saying they are aware of their responsibilities as executor, genuine knowledge varied when provided with a selection of common duties. In fact, 4% said they were not aware of any of the responsibilities listed at all.
- Almost seven in 10 (68%) were unaware that an executor is responsible for arranging the funeral, whether or not the will contains specific instructions to do so.
- More than half (52%) didn’t know that an executor may also be named as a trustee in a will. If so, they will have different responsibilities. For example, a trustee may be named to look after inherited assets of a minor, which are automatically held within the trust. An executor may have a dual role to act as trustee if no other trustee is specifically appointed. Therefore, a trustee will take more of a long-term role, compared to an executor which is more short-term.
- Just under half (47%) had no knowledge that an executor is responsible for calculating and paying all relevant taxes (for example Inheritance Tax, Income Tax, Capital Gains Tax).
- Around four in 10 (44%) were unaware that an executor is responsible for making sure the property owned by the person who has died is secured as soon as possible after death. Secured means that the executor takes ownership of a property and would need to inform the mortgage provider for example, that the legal ownership has changed hands. It also includes responsibilities like making sure there is a contents insurance policy, to ensure that the assets within are protected.
- Almost a third (32%) didn’t know an executor is responsible for collecting information and gathering all assets and money due to the estate of the person who’s died.
- Almost three in 10 (28%) were uninformed that executors need to have mental capacity when they are appointed and when they execute the will.
- Almost three in 10 (28%) had no knowledge that executors must settle any bills or debts of the deceased person.
Liz Hardie, Technical Specialist – Tax, Trusts and Estate Planning, Canada Life said:
“Arranging the funeral, paying taxes owed by the estate, and settling final bills are just some of the obligations that executors will be required to act upon as part of their role. Many may agree to be named as executor of a will, but not everyone will understand the gravity of the situation, nor the extent of their responsibilities, until fulfilling their duty becomes a reality.
It’s understandable that some are uncomfortable talking about death, but having a conversation between the owner of the will and the executor can make the latter’s duties more manageable and potentially save a lot of heartache in the future. Matters such as where important documents are kept, including the will itself, will be invaluable information to the executor when the time comes.
The testator – or owner of the will – also needs to be conscientious of their executor’s mental capacity, as this is required when they are appointed and when executing the will as well. When writing or updating a will, it could be a peace of mind to name a substitute executor in addition, so that they may be able to fulfil the executor’s duties if they later become incapacitated.”
