A relative named you executor in their will.

Now what? 

It doesn't mean you have to accept the job and all the responsibility with it. You can refuse to act as executor before you start the job.

Want to quit as an executor?

Once you start the job you must resign. You need permission to stop working. A court must approve but angry beneficiaries may object.

You could be required to attend a court hearing or audit. A judge then reviews all your financial dealings. There can be no outstanding questions regarding the estate.

Normally, you will need to reduce your executor compensation. You may even be required to pay your own legal fees to resign.

You can see why it's better to renounce than to resign as an executor.

Renouncing or declining is a lot easier. But do this before it’s too late!

Not sure you want the job?

You need to know these 10 warning signs in my e-book. Click here to download it instantly (22 page PDF). It's about how executors can stay out of trouble.

I’ll help you deal with the 10 biggest problems executors face. Then decide with your lawyer if you want to be executor.

Better be safe than sorry

You can read it in the time it takes to enjoy your morning coffee.

I wrote it for readers with no legal background.

Let me know what you think.

Want more free legal information on executors? Check out my free executor articles here.

Should you decline to act as an executor? Well, you can make an expensive mistake if you don’t.
 
But don’t worry. I can help keep you out of trouble. 

I can help executors deal with

•  Difficult beneficiaries

•  Real estate responsibilities

•  Foreign assets

•  Contested wills

•  Executor survival and more

You get all this and more for just $9.99. You can read my book while you finish a cup of coffee.

Download Can Executors Dodge These Duties? (22 page PDF ebook) here.

Is an estate dispute causing you stress? These problems can eat up time and money.
 
I know the best way to resolve them.

You might think “This sounds too good to be true, Ed.” Well, your lawyer can’t guarantee you’ll win in court. You could end up paying your lawyer and the other side’s.

Estate mediation is the best way to solve your dispute. But what does that mean?

I wrote How to Resolve Estate Disputes with Mediation to answer this question. You’ll discover:

•  Advantages of mediation

•  10 frequently asked questions about mediation

•  How to make mediation successful and more…

This plain language guide is just $9.99. You can finish it while you have your coffee.

Download my mediation guide (21 page ebook PDF) here.

Are you shaking your head and wondering “How could I be left out of the will?” It happens, but there’s an easy solution to your problems.

Let me explain.

You need a lawyer to prove the other side’s wrong. But just one hour with a lawyer can cost you hundreds of dollars. Got a lot of questions or a complex will? Expect to pay even more and wait longer for basic information.

My guide, How to Contest a Will, saves you time and money.

Before you even see a lawyer, you’ll discover plain language tips on

•  Married spouses’ claims in contested wills

•  How to contest wills in three steps

•  Action you can to take.

You get all this and more for just $9.99. Start reading now and you can finish while you have your coffee.

You’ll know what’s involved in contesting a will. Click here to download How to Contest a Will (23 page ebook PDF)  now. Sleep easier tonight.  

Are you confused and unable to start your estate planning? According to Emma Ann Hughes’ FTAdviser.com article, you’re not alone. I’ll give you three easy ways to start your estate planning. One is totally free.

Many British adults say they don't know where to begin their estate planning either. The secret to successful estate planning is to start right today. Here’s how you can begin.

1. My free eBook called “Estate Planning – 7 keys to Success.” You’ll discover how to prepare a will, save money, choose executors, and more.

2. For more help, read Estate to the Heart: How to Plan Wills and Estate for Your Loved Ones. This book, written in plain English, will help any beginner with estate planning.

3. Want answers to the 7 most common estate planning questions? Just read Breakthrough Estate Planning: Finding All the Answers You’ll Ever Need. 
 

As the legal representative for an estate, executors must do 5 things:

1. File all required tax returns for the deceased.

These returns could be personal or for the deceased’s business. Multiple tax returns can sometimes be filed to save the estate money.

2. Hire a tax advisor to protect you.

You must, however, supervise all professionals you hire. Don’t make a mistake. Make sure if the tax advisor will request any tax clearance.

3. Advise beneficiaries.

Let them know about the taxable assets they received.

4. File any outstanding tax returns.

This includes years prior to the final tax return to the date of death. An estate return reports any income received after the date of death.

5. Avoid filing any final tax returns late.

Know the tax filing due dates to avoid any late filing penalties and interest charges.

As a legal representative, you need

• a copy of the deceased’s death certificate

• social insurance number, and

•  a copy of the will or court documents confirming your status as legal representative.

For more on Executor Duties, read my book Executor Kung Fu. You'll get easy lessons on being an executor. You’ll also discover how to handle any estate in three simple steps.

Here is a summary of what your Estate Plan does to save you time and money. It will help you organize your thoughts for when you meet your lawyer.

Let’s look at the essential documents you’ll need:

1. Will

•  Names an executor and backup executor

•  Names beneficiaries of gifts and allows for tax planning

•  Appoints trustee to hold gifts in trust

•  Appoints guardians to care for underage children

2. Power of Attorney for Property or Finances

•  Names someone as a financial attorney

•  Specifies conditions and/or restrictions on your attorney

•  Is effective while you are alive

•  Usually states it is valid if you are incapable (durable)

3. Power of Attorney for Personal or Medical Care

•  Also called health or medical care attorney proxies

•  Authorizes health and personal-care decision makers

•  May include attachments regarding your medical directives or treatment optionsŸ

•  Valid only if you cannot make your own decisions

For more on easy-to-use estate planning tips, read my book Estate to the Heart.

Ask Ed: Submit your estate questions to EstateTherapy.com

Advisor Question: Are Home-Made Powers of Attorney Dangerous?

Ed's Answer:

Power of Attorney (POA) fraud is common. I no longer recommend that people rely on do-it-yourself power of attorney forms or kits. I‘ll explain the risk, and why clients need to invest in a professionally prepared POA.

What is the Risk?

If a client prepares the POA themselves, it may be considered invalid when they need it. The onus is on lawyers to give legal opinions on a POA’s validity.

When a power of attorney is used to sell or mortgage real estate, lawyers have new responsibilities. Financial institutions also will insist on legal departments reviewing all POAs. If a POA does not meet the new rules for approval, clients could be without one.

Families who do not have valid POAs can end up in costly court proceedings.
Typical cases can cost tens of thousands of dollars.

Why Legal Guardianship is Required

Clients often think their spouse automatically has the right to sign for them without a POA. This is not the case, and they need to be warned about the high costs of guardianship proceedings. Their wealth can be wasted in these contested proceedings. Court costs and legal fees can amount to over $100,000.

What could possibly go wrong?

A client’s attorney may try to sell the client’s house. The proceeds are needed to pay for the client’s nursing home costs. The attorney then digs up the client’s homemade POA to sell the house. However, if it does not comply with the legal requirements for POAs, the sale cannot be completed.

Not all Powers of Attorney are Valid
 
If you own real estate – especially in Ontario – you better know the risks. Whenever someone attempts to sell real estate with a POA, lawyers must determine the validity of the POA.

Lawyers must ask questions including:

1. How was the POA prepared?

2. Was the POA prepared by a law firm that can answer questions?

3. Can a lawyer personally confirm having met the donor who was capable when the POA was signed?

4. Are restrictions or conditions on the POA satisfied?

5. Does the signature on the POA match other signatures available for comparison?

6. What is the relationship between the attorney and the donor – the person granting the POA?

7. Can the witnesses be contacted?

8. How and where was the document signed?

9. Who benefits from the transaction?

10. Is the donor available to confirm the POA was not revoked?

This is an incomplete list of questions to consider.

In the above example, if the homemade will is not valid, what happens? The relatives go to court. Someone must be appointed guardian to handle the client’s financial affairs. Only a court appointed guardian can sell property if there is no valid POA.

What’s the Inexpensive Solution?

Clients should avoid the risks of a self-prepared POA.

Advise them to invest in a professionally prepared POA.

Read more about my upcoming free estate planning webinars. Sign up today for the next webinar, Choose The Right Estate Executor (November 9 at 7 PM EST).

How secure is your family? Is estate planning confusing you? Sign-up for my free estate webinars.

My free webinars are online presentations on estate planning topics. You’ll learn 3 estate planning secrets in 30 minutes.

I host the webinars every Wednesday in November from 7:00- 7:30 PM EST. Learn more about how to register for webinars here.

You can ask questions about estate planning. Benefit from my 30 years of experience as a Toronto estate lawyer.

My first webinar is called How to Protect Your Family Today. I’m hosting it on November 2, 2011 at 7:00 pm EST. You can sign up for it here.

Here is a list of upcoming free November estate webinars:

November 2011 Make-Your-Will Month

1. How to Protect Your Family Today – Nov. 2

2. Choose the Right Estate Executor – Nov. 9

3. Caution: Wills Are Not Bulletproof – Nov. 16

4. Costly Will Mistakes to Avoid – Nov. 23

5. Wills: What Everybody Needs to Know – Nov. 30

Mary wants to cut out a niece from her will. Is this a simple matter?

According to Mary, it is a simple change. She can prepare a one page document herself and have her neighbours sign as witnesses.

Is she correct?

What would a lawyer do when reviewing Mary's wishes?

Lawyers must follow certain procedures. Normally, I would want to know what was in Mary's prior will. If I had not prepared Mary’s will in my office, I would request a copy of her will.

The Law Society also requires me to:

• obtain photo identification from Mary

• avoid any conflict of interest

• provide independent and objective advice

I would review Mary’s circumstances to give her estate planning advice. I need to know: 

1. What has changed since she made the will in 2005?

2. Had she purchased any property?

3. Had the value of her investments increased or declined?

4. Had her relationships changed? Was she divorced, separated or with a common-law spouse?

5. Had she made promises or commitments to the niece?

6. Had Mary's spouse made commitments to the niece?

7. If Mary had a joint bank account with the niece. Was she aware this would still go to the niece outside of the will?

8. Would Mary also change designations or accounts?

9. Was the niece disinherited for capricious or acceptable reasons?

Without reviewing Mary's circumstances, I could not say if the niece would sue the estate.

Codicils are legal documents that amend wills.

Every codicil must be signed in the presence of two witnesses.

The signing formalities for codicils are identical to those required for wills. This means that both witnesses must be present to watch Mary sign the will.

If the codicil is not properly signed or witnessed, it is invalid.

Lawyers who prepared codicils can be sued by beneficiaries. The law makes lawyers legally liable for negligence.

There are lawyers in every price range. Your clients cannot afford to make a bad investment. Help them find a capable estate lawyer. Otherwise, they will always be revising their wills and risking making mistakes.

Want to know more about changing your will? Register for my free 30 minute estate planning webinars. November's webinar theme is Make-Your-Will Month.