Executor Insurance

The role of the executor is complex and can include the following responsibilities for example:

  • Valuing and disposing of real estate and business assets
  • Settling accounts and ensuring creditor obligations are met
  • Settling tax obligations and filings
  • Managing property and personal assets
  • Handling investments
  • Locating and identifying beneficiaries
  • Providing detailed financial accounting to the beneficiaries
  • Managing expectations of beneficiaries, and often, those providing guidance to them

While each estate may be unique in size and complexity, the executor duties are always challenging and the opportunity for error or perceived negligence is real. The fiduciary responsibilities are great, and beneficiary relationships and expectations can be unpredictable.

Therefore, there is insurance protection, offered by ERAssure, which may be of interest to you to support you through this period.

Who and What is Covered?

Executor insurance covers defense costs and legal liability arising out of actual or alleged negligence in the administration of the estate. Primary coverage is for the executor but the insurance contingently protects the estate assets and thus adds value for the beneficiaries as well (in the absence of insurance, estate assets may be liquidated to pay the costs of defense when the executor is sued for negligence). Coverage is available for estates of any size, with a current liability limit of $5 million.

How much? 

ERAssure premiums depend on the estimated value and complexity of the estate, type of assets, number and qualification of executors, and the amount of coverage. For a typical estate valued at less than $1 million, the approximate cost is less than $2,000 for a 3-year term.

Who pays?

The estate could cover the insurance premium. As with all estate expenses, the estate trustee can be indemnified for incurring the expense if found to be reasonable by the beneficiaries or as part of the passing of accounts.

Time limits?

An ERAssure policy must be ordered within 30 days of the date of testator’s death or the date of appointment of the executor.

We can help.

 

Related Posts

Where Should I keep my original Will?

Your original Will should be kept somewhere safe and accessible, when it will be needed. A copy should be kept in a personal file and you should let your executor know where to find it. Contrary to popular belief your safety deposit box is not the safest place. Most financial institutions will require court authority

Read More »

COVID-19 Communiques

March 30, 2020 (Litigation clients) To Our Valued Clients We hope you and your family are keeping safe and well. As you may have heard, last week’s announcement by the provincial government has deemed lawyers to be considered an “essential service”. We continue to be open and available albeit with a modified work routine.  Accordingly,

Read More »

Checklist: Executor’s Duties

Being an executor is an important obligation not to be taken lightly. There are many duties that are necessary. Initial Work The Estate Trustee or executor’s first steps are to make funeral/burial arrangements, obtain the Funeral Director’s Proof of Death and deceased’s identification, bank and credit cards, Last Will (any codicils), valuables needing safekeeping, notify

Read More »

Administration Bonds

What is an Administration Bond?  An administration bond is a promise to pay under specified circumstances, undertaken by a prospective estate trustee, to protect the interests of the beneficiaries and creditors if the estate trustee misappropriates assets of the estate or otherwise perpetuates a fraud on the estate. The bond is obtained from a surety

Read More »

Insolvent Estate Administration

What happens if I die without enough assets to satisfy my debts?  When someone dies with insufficient assets to meet the claims of their creditors, they leave an insolvent estate. The Bankruptcy and Insolvency Act and the Trustee Act govern the administration of insolvent estates, and the legislation allows executors to pay for “proper funeral

Read More »

Estate Administration Basics

When a person dies, the property he or she holds in their own name is called an Estate. A Will is a legal document that names the person or persons appointed as estate trustee (formerly known as an executor/executrix) and sets out how you want your assets will be distributed. The authority for administering the

Read More »
Scroll to Top