A court usually needs a valid reason to allow an executor /estate trustee to resign. Health problems that prevent you from finishing could be enough. But there are other factors to consider.

You or your lawyer must take these steps to resign as executor:

1. the consent of all the beneficiaries to your resignation

2. court permission to appoint the substitute executor

3. approval of your estate financial records

4. approval of any claims for executor’s compensation

5. payment of costs which could be your personal responsibility

6. the consent of the new or replacement executor to take over

7. any existing executor’s bond may need to be cancelled or replaced

Get more easy lessons about being an executor at Executor School.

Are you having doubts about being an executor of an estate? Run, don't walk, to an estate lawyer for immediate advice.

Why?

I'll tell you some stories I hear in my own law office.

I am Ed Olkovich. I am a certified specialist in Estates and Trusts Law. I give advice to executors about their legal duties. I wrote Executor Kung Fu to explain how to be an executor. You don't have to have any legal background to understand it.

First Time Executors

Some executors contact me when they start their journey. They don't know where to begin.

These executors make the mistake of thinking probate is a piece of cake. They are surprised when I tell them, "Treat it like a job that can last 2 to 3 years."

I warn them not to make any promises to beneficiaries.

Some executors contact me after 3 years working on the job. They think they are finished. But they have so many loose ends to tie up:

•  They have lost sight of the big picture

•  They forgot to order a final income tax clearance. This protects them from personal liability.

•  They almost cry when I say this takes an extra 8 months.

People ask me "When should I refuse to be an executor?"

I've written an e-book called Can Executors Dodge These Duties? (22 page PDF)

It helps executors with their job’s top 10 red warning flags. You discover how tough this job is. Then you can decide if you want to decline. 

I want you to sleep easy tonight. You can know if this job is right for you now. Click here to purchase my eBook. You’ll get instant access.

Here are some tips if you are an executor.

Minor squabbles can take hours of your time away from your office. Court battles can add years to estate work as executor.  If you are a professional, this can actually take money from your pocket.

You should be doing work for which you are well-paid in the office.

You manage your work as an experienced advisor at what you do best.

Instead, as executor, you can end up spending hours with lawyers sorting through what you think is material evidence. You hope your lawyer has enough estate experience to help.

You May be Lucky

There may not be any legal disputes. You may not have to hire an estate lawyer to go to court.

But what happens if someone contests the estate and starts a lawsuit? You must hire a lawyer with estate court experience to:

• defend the will against claims from creditors;
• defend yourself from any mistakes you made handling the estate;
• sue to recover or collect estate assets

You can spend hours of unbillable time on estate lawsuits.

Executor Tips

If you are an executor, call me for a consultation.

Read a sample from Executor Quick Start and use my 65-point checklist to prepare yourself. Get answers to the most frequently asked executor questions.

Subscribe to my newsletter, EstateTips, and learn more about your executor duties.

Will You Be an Executor?

Get a free guide called Executor Duties: What You Need to Know.

Albert was the executor of his uncle’s small estate. He paid the beneficiaries what he roughly calculated they should receive. But he did not hold back enough to pay all the estate debts. Now he was in trouble and looking for legal help. What should you or any executor have done to prevent this pain?

Executors Must Invest in Legal Advice

Albert wanted to avoid spending his uncle’s money. He thought the beneficiaries would thank him as they would each get more money. Instead, they were now steaming because they were asked to give money back. They were worried Albert had made other mistakes.

If you are an executor, don’t forget that your reasonable legal fees are paid by the estate.

Legal advice will help you understand your executor duties including:

• whether you should accept or renounce your role as executor
• confirming a will is legally valid
• setting out your rights and responsibilities as executor
• completing court papers for probate of the will
• helping you sell or transfer estate assets or property
• protecting yourself from creditors and beneficiaries
• avoiding any potential personal liability for income taxes
• showing you the correct way to distribute the estate
• ensuring beneficiaries approve your compensation

Finding the Right Estate Lawyer

Search the internet to get background information about an estate lawyer’s experience and expertise.  Call and interview the firm by phone before you make commitments.

Ask your financial planner, banker or accountant to recommend the name of an estate lawyer in your neighbourhood.

Professional advice will protect you as executor. Consider it an investment to make before it’s too late.

Executor Tip: Getting proper legal advice will keep you out of trouble.

Learn how it works this-coming Sunday.

Tune in to Zoomer Radio AM740 on Sunday, April 10, 2011, 9 a.m. – 10 a.m. EST and join me, on Right on the Money with host, Wayne Baxter, CFP, of Investment Planning Counsel. I will discuss the tax mistakes people make when planning estates, tax tips for estate executors, and more.

Learn what you can do to protect your family.

I call it Executor’s Disease™. It infects your money.

I see the infection every day in my law office. It affects people in all income brackets.

Your money may already be contaminated. I will tell you what this disease does. I will share with you my insider secrets about the disease and how you can find a cure.

Executor’s Disease™ is the new danger that nobody has dared to talk about … until now.

Don’t worry, it’s not contagious.

You cannot pass this disease on like it was a medical condition. It can, however, spoil everything. It does not care about your grand plans for your family or your money.

No Family is Immune from Estate Disputes

You may or may not have a plan for your money. However, estate disputes over money are obstacles that you must anticipate.

Disputes over money can be like a disease. They can cause full-blown, financially devastating lawsuits.

Innocent beneficiaries of your estate become victims.

Why Traditional Estate Planning Won’t Help

Most traditional estate planning advisors focus on tax issues. They are into preserving and transferring wealth. They speak of wealth, meaning your assets, real estate, businesses, stocks, and investments.

Professional financial planners show you how to get maximum benefit from all these assets. They are usually very good at their job. You get to sleep better with peace of mind.

Estate planners help you set up an orderly wealth transfer. Seldom do they get involved in messy estate work or disputes.

However, this is where you come back into the picture. It is critical for you to understand how things have changed. Estate disputes have become commonplace and affect everyone, not just the wealthy.

Over the next while, I will be writing about executors. If you happen to want to learn more about Executor’s Disease™, download my free ebook here.

Let me describe what the Kerr v Baranow case means for common-law spouses.

Common-law spouses do not get property rights unless they make a claim, or are provided for adequately in an estate plan. Common-law spouses must sue their partners’ estate and make a claim for unjust enrichment.

What is Unjust Enrichment?

Here are 3 steps that a court must follow to find unjust enrichment:

Step1. You must show that you enriched your partner, either by your services or financial contributions. What the courts look for is that you have, through services, financial contributions or otherwise, enriched your partner.

For example, you could have:

• agreed to give up your career
• supported your partner in a business
• made cash contributions towards a down payment of a home
• provided domestic services
• handled child care needs

Step 2. You suffered a loss; it could be a loss of time or money by providing the enrichment.

Step 3. There is no legal reason for you to have enriched your partner. There was no contract or you did not intend to make a gift.

Once unjust enrichment is found, the remedy the courts frequently use is a constructive trust.

A constructive trust is an equitable remedy used when there is no legislated remedy. The courts will use it in cases where there’s been unjust enrichment or fraud.

The Kerr v Baranow case of the Supreme Court of Canada can be found here.

Kerr v Baranow has a lengthy examination of the law of unjust enrichment. This will be discussed in more detail in future posts.

Register now and I will send you an email notifying you when a new post is made. In the coming weeks, I will be giving you tips on what the Kerr decision means if you are an estate executor or a common-law spouse doing any estate planning.

Can you imagine you’re suddenly an executor?

Like most executors, you don’t have any experience handling an estate.

Your new workload feels like you’ve just have taken on another full-time job.

Estate Disputes Can Be Horrible

You can now find out now that you’re going to be involved in an estate dispute.

It could be caused by a former spouse, an estranged child, a business creditor or partner.

In some cases, you could be involved in an income tax audit. You may have to sue a deadbeat to recover estate property.

These disputes can last 3-5 years, or more.

Whenever there is a dispute, you’ll be expected to spend more time:

• going to lawyer’s appointments; 
• reading legal and medical documents; and 
• attending court proceedings.

What Is Expected of Executors?

You will be expected to:

• keep time logs;
• maintain detailed financial records; 
• track your phone calls, letters and e-mails;
• help to collect evidence; 
• keep beneficiaries informed and happy; and
• sacrifice your personal life.

You will need to:

• maintain a complete list of assets and liabilities;
• know what property is insured; and
• file tax returns on time and pay all bills.

On top of that, you must take care of your own health, personal relationships and children.

One Word Describes This: YIKES

You do not have to do this all alone.

Use my experience helping executors for over 3 decades.

Read about the world’s first self defense guide for executors, Executor Kung Fu: Master Any Estate In Three Easy Steps. Read a sample chapter now.

Sign up for the next Executor Workshop.

This is one of the first decisions you get to make as an executor.

Choose wisely – changing lawyers is time-consuming and expensive.

After you do your preliminary research, interview prospective candidates. Look for referrals and search law firm websites.

Note: Some estate problems will call for different legal specialists.

Here are some factors that could affect your choice of lawyers.

You may need different expertise if:

• the will is being contested or does not make sense
• the former spouse wants to sue for support
• the estate includes a business
• the estate may be bankrupt
• the estate includes special assets like real estate or a business

The right lawyer can refer you to specialists in each of these areas.

You want to be confident about the advice you receive. Without the appropriate level of trust, nothing gets done.

If you want to learn more about my experience, watch this short video about my book for estate executors, Executor Kung Fu: Master Any Estate in Three Easy Steps.

Only 1 day left to register! Sign up now to join Ed Olkovich as he hosts this Online Executor Workshop for EstateTherapy.com. Read more…