2. Choose an estate trustee
Question & Answer
What do I need to think about when making a will?The property you own when you die is called your .
The person who deals with your property after you die and carries out the instructions in your will is called an .
Estate trustees are also called executors, estate representatives, personal representatives, estate administrators, or liquidators.
Being an estate trustee is a big responsibility, which can sometimes last for years.
What an estate trustee does
Your estate trustee:
- plans your funeral and burial or cremation
- stops payments that end when you die, like Canada Pension Plan (CPP), Old Age Security (OAS), income assistance, and disability insurance payments
- cancels your social insurance, driver's licence, and OHIP card
- finds and values all in your estate
- applies for if they need to
- pays any taxes and that you owe
- files your final income tax return
- distributes your estate based on what your will says
Choosing an estate trustee
Here are some things to think about when choosing an estate trustee:
- Choose an adult you trust and who's likely to live longer than you.
- Choose someone who's organized, responsible, and knows about finances.
- Choose someone who lives in Ontario. It can be easier for someone who lives close by to deal with your estate. If your estate trustee does not live in Canada, they might have to pay a bond. A bond is the estate trustee's promise to pay an amount of money if they do not do their job honestly.
- Think about choosing a professional, such as a lawyer, accountant, or trust company, if you have a large or complicated estate.
Many people choose their or common law partner, a family member, or a friend to be their estate trustee. Talk to the person to make sure that they agree to be your estate trustee before naming them in your will.
If you separate or divorce
If you name your married partner as your estate trustee in your will and you later , they cannot be your estate trustee.
If you name your married partner as your estate trustee in your will and later from them, they may not be able to be your estate trustee.
If you still want them to be your estate trustee even if you're separated or divorced, talk to a lawyer.
More than one estate trustee
Also think about choosing a person to be your second choice as an estate trustee. If your first choice dies or is not able or willing to do the job after you die, then your second choice can do the work.
You can name more than one person to act as estate trustee. If you do, it's a good idea to say how decisions about your estate should be made. For example, you can say if you want all the estate trustees to agree on every decision, or which one can decide if they do not agree.
If the will does not say anything, then all estate trustees must agree before any decision is made.
Paying your estate trustee
Think about whether your estate trustee will be paid. Even if your estate trustee is a family member or friend who says they do not want to be paid, all estate trustees are legally allowed to charge a fee.
If the fee is not in the will, the law says the fee is an amount that's “fair and reasonable”. This depends on what your estate is worth and how much work your estate trustee has to do. In general, this fee is:
- about 5% of the estate's value, and
- sometimes an additional care and management fee of 2/5 of 1% of the average annual value of the assets administered.
Information for your estate trustee
You do not have to file your will with the court. So make sure your will is kept in a safe place. This might be in a fireproof safe at home, or with your lawyer.
Make sure your estate trustee knows where to find your will.
It's also a good idea to tell your estate trustee where they can find:
- a list of your property, including bank accounts, investments, and insurance policies,
- important documents, like the title to your house,
- passwords for things like online banking and social media accounts
You may also want to tell your estate trustee what kind of funeral you want. And whether you want to be buried or cremated. Your estate trustee makes these plans and can follow your wishes if they know them.
