There is a provision in every province in Canada that an executor fee may (optional) be disbursed to an executor based on a percentage of the gross value of the estate.
The dollar amount may be under the discretion of the executor & / or solicitor.
This fee is considered a wage and is taxable income and insurable under employment insurance premium.
What are the duties of an executor/trix
- Contact all beneficiaries (as per Will) & all payees regarding the death
- Consider selected capital gains and losses on assets transferred to spouse or spousal trust without tax considerations to deceased
- Take steps to minimize the changes in assets & liabilities balance. (ie: fixed investments & loans)
- Consider filing separate income tax returns to multiply credits
- Be careful of any foreign estate taxes
- Obtain a clearance certificate before distributing assets
- Locate the previous 3 yrs tax returns with tax slips and review the source of issuers on slips. Provide copies to tax accountant.
- Maintain a vehicle log on trips occurred for the estate listing the address, the distance travelled including return distance, the date and the purpose.
- Obtain at least 5 death certificates from the funeral home.
- Maintain a paper copy of any disbursement you have occurred for the estate, whether it was paid by the estate bank or your cash.
These are just some things you need to consider before finalizing your decision.
