Ottawa – When Leanne Kaufman asks people who acted as an outlet for your loved one if they did it again, the answer is almost always no.
Ottawa – When Leanne Kaufman asks people who acted as an outlet for your loved one if they did it again, the answer is almost always no.
“People don’t know what they don’t know when it comes to the role and if they knew how much work and how hard it was, and what damage it could do to their family’s situation, they would never,” said the CEO of RBC Royal Trust.
Naming an executor in your will is an important decision because it is up to them to make sure your possession is properly terminated and your wishes are fulfilled after your death.
Many name a close friend or family member as the executor, but experts say you might want to consider naming a company executor to manage your property in an effort to avoid burdening a grieving loved one with a task that could amount to a part-time job that could take years to complete.
There are dozens of tasks involved in real estate liquidation, including managing investments, paying off debt, and selling real estate — but also more regular jobs like cleaning the fridge and canceling subscriptions.
Corporate executive services are generally provided by trust companies and may fill the role of executor in your will.
In general, the more complex an estate is, the more likely an institutional outlet will be. If the estate includes trust accounts, the company executor can also act as a trustee and oversee accounts that would last for years if created for a child or a disabled family member.
Naming a corporate executor may also protect a loved one, who may make the mistake of being inexperienced in managing your property and end up being sued or held liable.
It’s also less likely that a company executor will die before you do, and he won’t get cold and decide he can’t or doesn’t want to do so when the time comes to finish your property.
For those who do not want to lose the personal touch, a close friend or family member can be called an executive along with a corporate executive who brings the necessary expertise to handle the estate.
“If you are going to name someone dear to you, tell them that they can get help and that they have your permission to do so,” Kaufman said.
If there is a potential for fighting between beneficiaries, a corporate outlet can help offer an unbiased approach that is not tainted by family dynamics.
If a drug isn’t handled properly, says Melanie MacDonald, vice president and regional director at BMO Trust Co., it can cause irreparable harm to a family that ends up not talking to each other at the holiday dinner.
“The other reality now is that families are getting more and more complex with mixed families,” she said. “When the main glue that used to hold a family together disappears, especially in second or third marriages, it can lead to the unraveling of family dynamics.”
Choosing an executive company is not without cost. In general, the price depends on the property’s size and complexity, MacDonald says, ranging from 2 to 5 percent of the property’s value.
But she says the institutional outlet isn’t just for the super-rich with big, complex real estate.
“I think it’s something everyone has to consider because, you know, no matter the size, the tasks are the same and the issues are the same,” MacDonald said.
“No matter how much the house costs, it still has to be sold and cleaned.”
This report was first published by The Canadian Press on November 11, 2021.
Craig Wong, The Canadian Press
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