Estate Planning: Considerations for Executors

Executors act as the bridge between a person’s final wishes and the legal, financial, and administrative processes that follow their passing.

Whether you’re considering who should act as executor for your own estate or have been appointed to administer someone else’s, it’s critical to understand the scope of this role. Many underestimate the amount of work involved. At Nexus, we’ve seen families benefit when careful planning, trusted professionals, and clear communication come together.

This article outlines some of the responsibilities of an executor in Canada, provides practical considerations, and highlights where trusted advisors can help. Please note that this is not legal advice, nor is it an exhaustive list of executor duties – every situation is unique. When the time comes, we encourage you to connect with us to ensure the process is managed thoughtfully and thoroughly.

Gather Important Documents

Before anything else, it’s essential to collect the paperwork that forms the foundation of the estate administration process. Missing or incomplete records can lead to delays, disputes, and add unnecessary stress. Key documents include:

• The will: Locate the original, confirm its validity, and obtain a copy for reference. In Ontario, for example, courts require the original will to issue a Certificate of Appointment.
• Death certificate: Obtain multiple originals from the funeral home or local registrar. Most institutions will ask for either an original or a notarized copy.
• Bank and investment statements: To give you a snapshot of liquid assets, investment holdings, and outstanding loans.
• Insurance policies: Individual and group life insurance, as well as home, auto, and liability insurance.
• Property information: Real estate deeds, vehicle registrations, business ownership records, and other tangible assets.
• Household bills and subscriptions: Utilities, credit accounts, and any recurring charges.

Executor tip: Keep all documents in a secure, centralized location. A digital folder backed up securely can also reduce the risk of lost paperwork.

Notify the Relevant Parties

Once documents are in order, the next step is to notify relevant institutions and government agencies. This ensures that benefits stop at the right time, prevents overpayments, and reduces the risk of fraud.

Key contacts include:

• Canada Revenue Agency (CRA): Notify to stop any government benefits payable (GST/HST, CWB, CCB, etc.).
• Service Canada: Notify to stop payments such as Canada Pension Plan (CPP), Old Age Security (OAS), Employment Insurance, or disability benefits.
• Provincial agencies: Depending on the province, health coverage, ID, or provincial benefits must be cancelled.
• Credit bureaus (Equifax, TransUnion): Notify them to help prevent identity theft.
• Financial professionals: Notify the deceased’s advisors, including their investment manager, broker, accountant, and lawyer.
• Healthcare providers: Doctors, personal support workers, and long-term care facilities should be informed.

Executor tip: When reporting the death, include a copy of the will to confirm your appointment as executor. Also, request that mail be redirected to you to ensure no correspondence is overlooked.

Cancel Accounts and Services

Executors must also ensure that accounts, permits, and services tied to the deceased are properly cancelled. This protects the estate from unnecessary charges and potential misuse. Common items include:

• Provincial health insurance cards
• International pensions or foreign benefits
• Driver’s license and passport
• Permanent resident or citizenship applications
• Accessible parking permits
• Credit cards, memberships, and subscriptions
• Cell phone plans, email addresses, and social media accounts

Executor tip: Many families overlook digital assets. A growing number of people store financial accounts, cryptocurrency, or personal content online. Executors should determine whether the deceased left instructions about passwords, digital storage, or online accounts.

Apply for Benefits and Permissions

An executor’s role is not just about closing accounts – it also involves applying for benefits and permissions to protect and distribute estate assets. Depending on the circumstances, this may include:

• Probate (Certificate of Appointment of Estate Trustee): In many cases, a Certificate of Appointment is required to confirm the validity of the will and authorization for the executor to act. Probate fees vary by province.
• Canada Post mail forwarding: Ensures all critical correspondence is received.
• CPP benefits: The Death Benefit (a one-time payment), Survivor’s Pension, and Children’s Benefits may be available to eligible family members.
• OAS benefits: Survivor allowances or income supplements may apply.
• Private pensions and insurance: Executors must file claims for company pension plans, group benefits, and individual life insurance policies.
• Tax credits: Disability Tax Credit or medical expense claims may need to be filed retroactively.

Executor tip: Create a timeline for benefit applications. Some programs have strict deadlines, and delays can mean lost financial support for beneficiaries.

Manage Estate Finances

One of the most demanding tasks for executors is managing estate finances. For some of these tasks, you may be limited until the Certificate of Appointment is received. They include:

• Opening an estate bank account: All estate income (such as sale proceeds) should be deposited here, and all expenses paid from it.
• Paying debts and expenses: Funeral costs, outstanding loans, taxes, and household bills. Executors should prioritize debts based on legal requirements.
• Filing tax returns: Executors may need to file multiple tax returns – final return, rights and things return, and sometimes trust returns if the estate earns income during administration.
• Obtaining a CRA Clearance Certificate: Executors should not distribute estate assets until CRA confirms that no taxes remain owing. While a Clearance Certificate is not technically required, it is recommended as it protects the executor by confirming no further taxes are required.

Executor tip: Failure to properly manage finances can expose executors to personal liability. For this reason, many choose to work with accountants, lawyers, or wealth advisors through this process.

Distribute the Estate

Once debts, taxes, and administrative steps are complete, the executor can distribute estate assets to beneficiaries according to the will (or provincial intestacy laws if no will exists). This may involve:

• Selling property or investments and distributing proceeds.
• Transferring registered accounts (RRSPs, TFSAs) or securities.
• Transferring ownership of real estate, vehicles, or personal belongings.
• Making charitable donations, if directed in the will.

Executor tip: Executors should maintain transparent records and provide beneficiaries with an accounting of estate transactions. This reduces disputes and demonstrates fiduciary diligence.

Emotional and Practical Considerations

Beyond the technical duties, executors often find themselves managing family dynamics. Grief can complicate communication, and misunderstandings about the will can create tension.

Strategies to navigate these challenges:

• Stay organized and communicate clearly: Provide beneficiaries with regular updates.
• Document everything: Keep receipts, bank statements, and correspondence.
• Seek professional guidance: Lawyers, accountants, and wealth advisors can help interpret complex issues.
• Take care of yourself: Executor responsibilities can feel like a full-time job, especially if you are also grieving.

Executor tip: We’ve written previously about the importance of proactive estate planning to minimize disputes and reduce administrative complexity. Having the right structures in place – such as trusts, updated wills, and coordinated tax planning – can make an executor’s role significantly easier.

You Don’t Have to Do it Alone

Being an executor is both an honour and a burden. It requires financial literacy, administrative skill, and emotional resilience. But executors do not need to carry the weight alone. At Nexus, we support and partner with families to ensure estates are managed with care, transparency, and efficiency.

Our team regularly works with clients to plan their estates in advance, coordinate with accountants and lawyers, and support executors when the time comes. This holistic approach reduces stress and ensures families can focus on what matters most.

If you’ve been named an executor – or if you’re planning your own estate – consider how professional guidance can make a difficult process more manageable.