Executor’s Obligations to the Will in Canada – How It Works
Hi, WealthTrack founder David Pipe here. If you've been named as an executor in someone's will, you might feel honoured — or overwhelmed. Maybe both. It's one of the most important responsibilities in estate planning, and in Canada, it's also a legal role with specific obligations, deadlines, and liabilities.
This article breaks down what the executor actually has to do, how the process works in Canada, and what pitfalls to avoid — in plain, human language.
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What Is an Executor?
An executor (also called an estate trustee in Ontario or liquidator in Quebec) is the person legally appointed in a will to carry out the deceased's final wishes.
Their job is to:
Handle funeral arrangements
Collect assets
Pay off debts
File taxes
Distribute what's left to the beneficiaries named in the will
They essentially step into the shoes of the deceased — temporarily — and take care of all legal and financial loose ends.
They may also be responsible for notifying life insurance companies, especially if the policy proceeds are payable to the estate rather than directly to a named beneficiary.
Do Executors Have to Say Yes?
No — you can decline the role. Just because you're named in a will doesn’t mean you're legally obligated to accept.
If you do accept, however, you’re taking on legal duties, and you could be held personally liable for missteps. If you decline, a backup executor (if named) can step in, or a court can appoint someone.
Step-by-Step: Executor Duties in Canada
The executor’s responsibilities typically unfold in these major steps:
1. Locate the Will and Register the Death
This includes:
Finding the most recent will (which should name you)
Obtaining official death certificates
Organizing the funeral (unless the deceased had already made arrangements)
2. Apply for Probate (If Necessary)
Probate is the court process that confirms the will is legally valid and gives the executor authority to act.
You usually need probate when:
The estate holds property or large financial accounts
Financial institutions require it before releasing funds
There are disputes or no will
Note: Not all estates require probate, but most do if the assets are significant or complicated.
3. Take Inventory of the Estate
The executor must identify, locate, and safeguard:
Real estate
Bank accounts
Investments
Personal belongings
Digital assets
Outstanding debts
A detailed inventory of assets and liabilities will often be required by the court.
4. Pay Debts and Taxes
This is one of the most important obligations. Executors must:
Pay funeral expenses and any outstanding bills
File final personal tax returns
Possibly file estate or trust returns (if the estate generates income)
Pay taxes before distributing anything to beneficiaries
Failure to do this properly could make the executor personally responsible for unpaid taxes or debts.
5. Distribute the Assets
After debts and taxes are cleared, the executor:
Divides the estate according to the will
Transfers property, funds, or possessions to beneficiaries
Handles any conditions or timelines set out in the will (e.g., holding money in trust until a beneficiary reaches a certain age)
6. Keep Records and Provide Accounting
Executors must keep detailed records of:
All estate transactions
Debts paid
Money distributed
Beneficiaries have the right to ask for this information, and in some cases, a formal accounting must be provided to the court or approved by the beneficiaries.
The Executor’s Fiduciary Duty
In Canada, executors have what's called a fiduciary duty — a legal obligation to act in the best interests of the estate and its beneficiaries, not in their own interests.
This means:
No “borrowing” from the estate
No favouritism toward certain beneficiaries
No sloppy or delayed handling of assets
Breach of this duty can result in lawsuits or removal as executor.
Can an Executor Also Be a Beneficiary?
Yes — very common, and totally legal.
Most Canadian wills name a trusted family member who is also set to inherit something. That said, being both executor and beneficiary can sometimes create tension, especially if other beneficiaries disagree with your decisions or feel left out of the loop.
Transparency, good communication, and proper records go a long way in keeping the peace.
What Happens If There’s No Will?
If no valid will exists, the estate is considered intestate. In this case:
A court appoints an administrator (usually the next of kin)
Provincial laws dictate who inherits — not the deceased’s preferences
The administrator performs similar tasks as an executor but must follow statutory rules for asset distribution, rather than a will.
How Long Does an Executor Have to Settle the Estate?
There's no fixed national deadline, but the common guideline is the "Executor’s Year" — roughly 12 months to:
Apply for probate
Pay debts and taxes
Distribute the estate
Some estates (especially with property, business assets, or disputes) may take longer, even 2–3 years. The key is to keep beneficiaries informed and make reasonable progress.
Can an Executor Be Paid?
Yes. Executors in Canada are entitled to reasonable compensation, especially if they’re not a beneficiary. The amount varies by province but is generally based on a percentage of the estate value:
Often 3% to 5% of the estate
Or set by court approval if beneficiaries dispute the fee
If the executor is a family member who is also inheriting, they may waive compensation to avoid additional taxes or friction.
What If Someone Challenges the Will?
Disputes can happen, and executors may be drawn into:
Claims of undue influence (e.g., someone was pressured into changing their will)
Allegations of mental incapacity
Claims by disinherited family members
An executor’s job is to remain neutral and follow the will — unless a court tells them otherwise. If litigation arises, executors should seek legal advice to avoid personal liability.
Can Executors Be Sued?
Yes — if you:
Mismanage funds
Fail to pay taxes properly
Favor one beneficiary over others
Delay the process unnecessarily
You're unlikely to face legal trouble if you act honestly, carefully, and communicate well, but executors who ignore their duties can be held personally liable.
When the Job Is Done: Executor’s Release
Once all duties are complete, it's best to:
Provide final records and accounting
Get signed releases from beneficiaries confirming they’re satisfied
This protects the executor from future claims and marks the official end of the role.
Final Thoughts
Being an executor in Canada is a serious responsibility — but also an honour. You’re acting as the final advocate for someone you cared about, making sure their wishes are respected and their legacy handled with care.
The best executors:
Stay organized
Ask for help when needed (from lawyers, accountants, or financial advisors)
Keep records and communicate often
If you’ve just been named as executor and feel overwhelmed, that’s normal. But with a little structure and the right support, you can do the job well — and bring real peace of mind to everyone involved.
