RBC Estate and Trust Services

ROLE OF THE EXECUTOR - What you need to know

Janice Domaratzki

Investment Advisor

RBC Dominion Securities

Claudia Morrison

Regional Trust Advisor

RBC Wealth Management

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Agenda

1) Wills

2) Executor Duties & Responsibilities

3) New Rules for Executors

4) Selecting Your Executor

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4

What happens if …

You die without a Will?

- Your estate will be administered and

distributed under the provincial

intestate succession legislation where

you lived.

You become incapable without a

Power of Attorney for Property?

- All your financial activities will be

stagnant until a proper Attorney is

appointed, through a court application

Will Planning

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Where to begin?

Before you draft your Will – consider…

Family situation

Needs of

beneficiaries

Objectives and

wishes

Types of assets

Registration of

assets

Choice of

Executor

Legal obligations

Tax and probate

issues

6.6

The composition of your assets

“In” your estate “Outside” your estate

Probatable

Assets solely in the

Deceased name

Joint assets

Named beneficiary – life

insurance, RRSP’s and

RRIF’s

Unique assets

TFSA

7.7

Duties and responsibilities of an Executor

The overall role of the executor is to administer and settle the estate of the

deceased according to their final wishes as expressed in the Will according to

provincial law:

• Funeral arrangements and secure valuable assets

• Locate, value and collect all estate assets

• Apply for probate

• Pay off any debts

• Notifications, cancellations, dealing with real estate

• Understand the risks with any investments and take action

• Prepare and file Estate Information Return with Ministry of Finance

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Duties and responsibilities of an Executor

• Communicate with beneficiaries – regular accounting and updates

• Pay or deliver any legacy gifts

• Make distributions to the residual beneficiaries

• Keep a good record of all accounting transactions

• Prepare and file tax returns

• Obtain Clearance Certificate

• Seek professional assistance when needed (lawyer, accountant, professional

executor)

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New Rules for Executors

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What Changed & Why Were Changes Required?

• The Estate Information Return (EIR) was created by the Ontario Ministry of

Finance

• Prior to January 1, 2015, detailed information regarding estate assets was not

required when applying for a probate certificate.

• There was no requirement to provide supporting documentation to back up the

asset value reported. Consequently, some believe that asset values were

being conservatively estimated, and in some cases, significantly under

estimated.

• The EIR includes:

• Information about the deceased and the executor

• List and description of each estate asset (some estate assets such as

household contents can be grouped together).

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What Information Is Included In An EIR Form?

Assets that should be included:

• Real estate in Ontario (less encumbrances)

• Bank accounts

• Non-registered investments (e.g. stocks, bonds, trust units, options)

• RRSPs, RRIFs, TFSAs if proceeds pass through the estate (e.g. no named

beneficiary other than ‘Estate’)

• Vehicles and vessels (e.g. cars, trucks, boats, ATVs, motorcycles)

• All property of which the deceased had beneficial interest even if legal title was

held by someone else

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What Information Is Included In An EIR?

Assets that should be included:

•Jointly owned assets without a right of survivorship (e.g. joint tenants in

common - JTIC)

•All other property, wherever situated, including:

• Goods

• Intangible property

• Business interests

•Insurance, if proceeds pass through the estate (e.g. no named beneficiary other

than ‘Estate’)

•A calculation of applicable probate tax is also included

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What Assets Are Excluded from the EIR?

• Real estate outside Ontario

• Canada Pension Plan (CPP) death benefits

• Assets that pass outside of the estate including:

- Jointly owned assets with a right of survivorship (JTWROS)

- RRSPs, RRIFs, TFSAs with a named beneficiary other than ‘Estate’

- Insurance proceeds paid to a named beneficiary other than ‘Estate’

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Concerns of the Executor

▪ Acceptance of personal responsibility in

case of an error

▪ Criticism from family members and heirs

▪ Dissatisfaction among family members

excluded from the Will

▪ Conflicts of interest

▪ Difficulty in administering due to travel

distance, time constraints or insufficient

knowledge

▪ Difficulty in taking care of financial issues

during a difficult time

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Choosing your Executor

• Trustworthy, and can reliably carry out the instructions in your Will

• Capable of making fair decisions and balancing conflicting interests

• Willing and able to put in many hours of work over two or more years

• Knowledgeable in legal, tax and administrative issues

• Residency implications

• Multiple executors

• Likely to survive you

• Communication skills

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Things to consider

Estate Planning – Are You Prepared?

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Will we out

live our

money?10 years

past healthy

- POA

Consolidate

today to

help

tomorrow

Gifting now

vs.

inheritance28% plan to

leave an

inheritance to

a charity

Tax efficient

wealth

transfer

Financial

Plan Now

60% haven’t

spoken to an

advisor about

an inheritance

plan

Questions?

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Disclaimer

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This document has been prepared for use by the RBC Wealth Management member companies, RBC Dominion

Securities Inc. (RBC DS)*, RBC Phillips, Hager & North Investment Counsel Inc. (RBC PH&N IC), RBC Global Asset

Management Inc. (RBC GAM), Royal Trust Corporation of Canada and The Royal Trust Company (collectively, the

“Companies”) and their affiliates, RBC Direct Investing Inc. (RBC DI) *, RBC Wealth Management Financial Services Inc.

(RBC WM FS) and Royal Mutual Funds Inc. (RMFI). Each of the Companies, their affiliates and the Royal Bank of

Canada are separate corporate entities which are affiliated. *Members-Canadian Investor Protection Fund. “RBC

advisor” refers to Private Bankers who are employees of Royal Bank of Canada and licensed representatives of RMFI,

Investment Counsellors who are employees of RBC PH&N IC and the private client division of RBC GAM, Senior Trust

Advisors and Trust Officers who are employees of The Royal Trust Company or Royal Trust Corporation of Canada, or

Investment Advisors who are employees of RBC DS. In Quebec, financial planning services are provided by RMFI or

RBC WM FS and each is licensed as a financial services firm in that province. In the rest of Canada, financial planning

services are available through RMFI, Royal Trust Corporation of Canada, The Royal Trust Company, or RBC DS. Estate

and trust services are provided by Royal Trust Corporation of Canada and The Royal Trust Company. If specific products

or services are not offered by one of the Companies or RMFI, clients may request a referral to another RBC partner.

Insurance products are offered through RBC WM FS, a subsidiary of RBC DS. When providing life insurance products in

all provinces except Quebec, Investment Advisors are acting as Insurance Representatives of RBC WM FS. In Quebec,

Investment Advisors are acting as Financial Security Advisors of RBC WM FS. The strategies, advice and technical

content in this publication are provided for the general guidance and benefit of our clients, based on information believed

to be accurate and complete, but we cannot guarantee its accuracy or completeness. This publication is not intended as

nor does it constitute tax or legal advice. Readers should consult a qualified legal, tax or other professional advisor when

planning to implement a strategy. This will ensure that their individual circumstances have been considered properly and

that action is taken on the latest available information. Interest rates, market conditions, tax rules, and other investment

factors are subject to change. This information is not investment advice and should only be used in conjunction with a

discussion with your RBC advisor. None of the Companies, RMFI, RBC WM FS, RBC DI, Royal Bank of Canada or any

of its affiliates or any other person accepts any liability whatsoever for any direct or consequential loss arising from any

use of this report or the information contained herein. ® Registered trademarks of Royal Bank of Canada. Used under

license. © 2016 Royal Bank of Canada. All rights reserved.