2. Decide if you want to be estate trustee
Question and answer
My loved one died without naming an estate trustee. Can I apply?Being an is a big responsibility. You have a duty to handle the prudently. This means that you must act carefully and wisely.
There are rules you must follow. For example, as an estate trustee you have to:
- arrange for the funeral and burial or cremation
- stop payments that end on death, like Canada Pension Plan (CPP), Old Age Security (OAS), income assistance, and disability insurance payments
- cancel identity documents like driver's licence, social insurance registration, and Ontario Health Insurance Plan (OHIP) card
- find and value all in the estate
- pay any taxes and that are owed
- file tax returns
- distribute the property in the estate according to the will, or based on the if there is no will
You usually need to ask the court to make you estate trustee. This process is usually called applying for probate.
It takes at least one to 2 years to manage a simple estate. It takes longer if the situation is complicated. So if you become estate trustee, it's a good idea to regularly update the on where you are in the process.
Personal liability
Estate trustees have personal liability. This means a beneficiary or creditor can sue you if you:
- make a mistake
- do not manage the estate responsibly
You might be able to get estate trustee insurance. This can protect you if you make an honest mistake or get sued. An estates lawyer can help you with this.
Once you become the estate trustee, you may need permission from a judge to stop being one. So, think carefully about agreeing and applying to be an estate trustee.
Get paid
You're usually paid by the estate for being an estate trustee.
The will might say how much you're paid. If it does not, you can charge fees that are fair and reasonable. This amount depends on what the estate is worth, how much work you have to do, and how well you handled the estate.
In general, you can be paid:
- 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 you manage