Being named executor is an honour, but it comes with serious legal obligations under BC's WESA. Here is what you must do - and what happens if you fail.
When someone names you as executor in their will, they are trusting you to manage their estate professionally and fairly. But being an executor is not a honorary title - it is a legal position with strict obligations and potential personal liability. Here is what BC law requires.
What is an executor?
An executor is the person named in a will to:
• Collect and manage the deceased's assets
• Pay debts, taxes, and estate expenses
• Obtain probate (court approval) if necessary
• Distribute the remaining assets to beneficiaries
• File the deceased's final tax return
• Act as trustee if the will creates a trust
Key executor duties under BC's WESA
1. Duty of care
You must manage the estate's assets prudently and in the best interest of the beneficiaries. This means:
• Keeping assets safe and insured
• Investing conservatively (not gambling with estate money)
• Liquidating assets at fair market value
• Avoiding self-dealing (using estate assets for yourself)
2. Duty of loyalty
You must act in the estate's and beneficiaries' best interests, not your own. Examples of breaching this duty:
• Paying yourself excessive compensation
• Giving yourself more favourable treatment than other beneficiaries
• Using estate funds for personal benefit
• Favouring one beneficiary over another
3. Duty of confidentiality
You must keep estate information confidential and not disclose details to unauthorized parties.
4. Duty of impartiality
If the will creates a trust with multiple beneficiaries, you must:
• Balance the interests of current and future beneficiaries
• Invest for both income and growth (not just income)
• Treat beneficiaries fairly
• Make decisions based on objective criteria, not favorites
5. Duty of accountability
You must keep detailed records and be ready to account to beneficiaries for every dollar received and spent.
6. Duty to follow the will
You must distribute assets according to the will's terms, not your interpretation or personal beliefs.
Executor responsibilities - step by step
Step 1: Secure and assess assets
• Locate and take control of the deceased's property
• Change locks if necessary
• Arrange insurance for property and vehicles
• Access safety deposit boxes (with proper authority)
• Collect life insurance and registered account values
• Identify debts and liabilities
Step 2: Give notice
• Notify beneficiaries that probate will be sought (if applicable)
• Publish notice to creditors in the newspaper
• File the will with the court
Step 3: Obtain probate
• Prepare probate petition and supporting documents
• Submit to the BC Supreme Court
• Receive grant of probate (if successful)
Step 4: File the final tax return
• Gather income information
• Calculate capital gains
• File a final tax return with Canada Revenue Agency
• Pay any taxes owing from estate funds
Step 5: Pay debts and expenses
• Pay funeral expenses
• Pay outstanding bills
• Pay property taxes, utilities, insurance
• Pay legal and accounting fees
• Pay debts to creditors
Step 6: Prepare an accounting
• Document all money received
• Document all expenses paid
• Show how remaining assets will be distributed
• Provide this accounting to all beneficiaries
Step 7: Distribute assets
• Transfer title to real estate
• Distribute cash or securities
• Set up trusts if the will requires them
• Obtain signatures and receipts from beneficiaries
Step 8: Close the estate
• File final documents with the court
• Confirm all taxes are paid
• Ensure all distributions are complete
• File a final report (if required)
Executor liability - personal consequences
Executors can face personal liability if they fail to perform their duties. Examples:
Breach of trust
If you mismanage assets or spend estate money on yourself:
• Beneficiaries can sue you
• You may be ordered to repay the money from your own funds
• You may face personal liability beyond the estate
Failure to pay taxes
If you distribute assets before all taxes are paid:
• The Canada Revenue Agency can pursue you personally for unpaid taxes
• Beneficiaries may have to repay distributions if taxes are later assessed
• You could face penalties and interest
Breach of confidentiality or impartiality
If you treat beneficiaries unfairly or disclose confidential information:
• Beneficiaries can sue you
• You may be ordered to pay damages
• You may face court sanctions
Delay or negligence
If you unreasonably delay administering the estate:
• Beneficiaries may apply to court to remove you
• You could be liable for losses caused by delay
• Court may order you to pay legal costs
Executor compensation
Under BC law, executors are entitled to "estate trustee compensation." This is typically:
• A percentage of the estate's value (often 2-5%)
• Or a fixed fee agreed upon in advance
• Or no compensation if the executor chooses not to take it
Compensation must be reasonable and is subject to court approval if beneficiaries challenge it.
When to hire professional help
Consider hiring a lawyer or accountant if:
• The estate is large or complex
• There are business interests to value
• Real estate must be sold
• Beneficiaries are in conflict
• You are uncertain about tax obligations
• The will creates a trust
Declining the role
If you are named executor but do not want the role:
• You can decline before probate is granted
• You must notify the court and beneficiaries
• Someone else will be appointed (an alternate executor named in the will, or the court will appoint an administrator)
At Sea to Sky Law™
We help executors understand their obligations and navigate estate administration. If you have been named executor and need guidance, or if you are a beneficiary concerned about an executor's conduct, contact us for a free intake call.
This article is for general information only and does not constitute legal advice.
An executor in BC must: locate and file the Will with the BC Supreme Court; identify, protect, and inventory all estate assets; notify beneficiaries and creditors; apply for a Grant of Probate (if required); pay all valid debts and taxes; file the deceased's final income tax return and obtain a CRA Clearance Certificate; and distribute the net estate to beneficiaries. The executor must keep detailed records throughout.
Yes. An executor who distributes estate assets to beneficiaries before all debts and taxes are paid can be held personally liable to unpaid creditors and CRA. This is why executors must advertise for creditors, pay all valid claims, file tax returns, and obtain a CRA Clearance Certificate before making any final distributions.
A straightforward estate in BC typically takes 12–18 months to administer from date of death to final distribution. Complex estates — those involving real estate, a business, family disputes, or tax issues — can take 2–3 years or more. The probate application alone typically takes 3–6 months.
Yes. Under BC's Trustee Act, an executor is entitled to reasonable compensation for their time and effort — typically calculated as a percentage of the estate value (commonly 1–5%, depending on complexity). Executors who are also beneficiaries sometimes waive their compensation for tax reasons, since executor compensation is taxable income but inheritances are not.