ACTING AS A TRUSTEE OF AN ESTATE
Being named as a trustee of an estate (“executor”) is a significant responsibility. Failure to properly perform these duties can result in delays, financial costs and possible litigation.
HOW LONG SHOULD ADMINISTRATION OF THE ESTATE TAKE?
The general rule is that an executor has approximately one year to administer an estate. This rule is commonly referred to as “the executor’s year”, however, if the circumstances warrant, courts may not sanction an executor for failure to complete the administration within the year. However, if the executor is motivated by self interest, lengthy administrations of simple estates may be sanctioned by the courts.
COMPENSATION FOR EXECUTORS
Being an executor is not an easy job, it requires skill and attention to detail. Depending on the size of the estate, you may be entitled to compensation from the estate for your efforts as the executor. Executor compensation may be challenged, in which case it is supervised by the courts, known as “passing accounts”, which in effect is a form of review and approval of all the executor’s actions, not just compensation.