Working with Professionals

Being named an executor does not mean you must handle every aspect of estate administration on your own. In fact, trying to do everything yourself is one of the most common mistakes executors make, and it often leads to delays, errors, and unnecessary personal risk. Estate administration touches on law, taxation, accounting, real estate, investments, insurance, and sometimes family mediation. No single person is expected to be an expert in all of these areas. The most effective executors are those who recognize when to seek help and engage the right professionals early in the process. Doing so not only protects the estate and its beneficiaries but also protects you from personal liability. This chapter covers when and how to engage lawyers, accountants, financial advisors, appraisers, and other specialists, and how to coordinate their work so that the estate is administered efficiently and properly.

Estate administration can involve a wide range of complex issues (legal filings, tax returns, real estate transactions, asset appraisals, investment management, and navigating family conflict) many of which benefit from expert support. This section outlines:

• The types of professionals an executor might retain (e.g., lawyers, accountants, tax advisors, appraisers, and financial planners)

• When and why to bring in external expertise

• How professional fees are handled and paid from the estate

• Tips for effectively coordinating multiple advisors

• The role of trust companies and professional executors, particularly when the named executor is unwilling or unable to act

With the right team, you can administer the estate efficiently, lawfully, and with confidence while avoiding costly mistakes or unnecessary personal stress.

When to Consider a Trust Company or Professional Executor

A trust company is a licensed financial institution that specializes in estate and trust administration. Trust companies can serve as executor, co-executor, alternate executor, trustee of ongoing trusts, or attorney under an enduring or continuing power of attorney.

Why Choose a Professional Executor?

The core advantages are neutrality, continuity, and expertise:

• Neutrality: A trust company has no personal stake in family dynamics or inheritance outcomes. This impartiality can defuse conflict and ensure all beneficiaries are treated fairly.

• Continuity: Unlike an individual executor who may become ill, move away, or predecease the testator, an institution does not die, become incapacitated, or resign unexpectedly. This is especially important for long-term trusts.

• Expertise: Professional executors handle estates routinely. They maintain systems for asset tracking, tax compliance, investment management, and regulatory reporting that would take an individual executor significant time to learn.

When a Trust Company May Be a Good Fit

Consider appointing a trust company when:

Common Arrangements

• Sole executor: The trust company handles everything independently.

• Co-executor with a family member: Combines institutional expertise with personal knowledge of the family. The family member provides context; the trust company provides process.

• Alternate executor: A family member serves as primary executor, with the trust company stepping in if they cannot or will not act.

• Agent for the executor: An individual remains executor but delegates day-to-day administration to the trust company.

Understanding the Costs

Trust companies charge fees, typically calculated as a percentage of estate value (often similar to the 3 to 5% guideline for individual executors), plus potential additional charges for:

• Complex tax work or litigation management

• Ongoing trust administration (annual fees)

• Real estate sales or business wind-ups

These fees are paid from the estate, not by the beneficiaries personally. For many families, the cost is offset by:

• Reduced risk of costly errors or litigation

• Professional investment returns

• Time savings for family members

• Peace of mind

Questions to Ask When Selecting a Trust Company

1. What are your fees, and how are they calculated?

2. Who will be my primary contact, and how accessible are they?

3. How do you handle communication with beneficiaries?

4. What is your investment philosophy for estate assets?

5. Do you have experience with estates similar to mine (e.g., business interests, cross-border assets, family trusts)?

6. Are you a member of the Trust Companies Association of Canada?

7. Can you provide references from families you have served?

A Note on Choosing

Selecting a trust company is an important decision. Meet with representatives from more than one institution, ask about their approach and values, and ensure you feel comfortable with how they will interact with your loved ones. The right fit balances professionalism with genuine care for the people involved.

Consulting and Hiring a Lawyer

While not every estate requires full legal representation, most executors will benefit from at least an initial consultation with an estates lawyer shortly after the death. In many cases, legal guidance can help avoid costly errors and reduce the risk of personal liability.

Situations That Call For Legal Assistance

You should strongly consider engaging a lawyer in the following scenarios:

• Navigating Probate: A lawyer can prepare and file the probate application, ensure proper notice to beneficiaries, and guide you through local court procedures. This helps avoid delays and rejections due to errors or omissions.

• Interpreting the Will: If any clause in the will is vague, inconsistent, or potentially unenforceable, a lawyer can offer an interpretation or advise whether a court application is needed.

• Complex Family Dynamics: If you anticipate a will challenge or face hostility from beneficiaries or family members, early legal involvement can help manage risks and protect the estate.

• Claims Against the Estate: If a spouse or dependent brings a claim for a larger share (under laws such as Ontario’s Succession Law Reform Act or BC’s WESA), a lawyer’s guidance is essential.

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  Real Estate Transactions: For property transfers or sales, lawyers typically prepare the transfer or sale documents and handle registration. This ensures proper legal execution and clear title.

• Insolvent Estates or Creditor Issues: If the estate has more debts than assets or if creditors are pursuing payment, a lawyer can advise on creditor notification, advertising for claims, or even assigning the estate into bankruptcy.

• Foreign Assets or Beneficiaries: Estates involving international property or non-resident beneficiaries require coordination with foreign counsel and attention to cross-border legal and tax issues.

• Final Releases and Distribution Documentation: Many executors retain a lawyer to draft formal release forms and prepare distribution packages, especially in larger or more complex estates.

How to Find and Choose a Lawyer

If the will was originally drafted by a lawyer, the family may naturally return to that person. Otherwise, you can find an estates lawyer through:

• A referral from your provincial law society or bar association

• Recommendations from financial advisors, accountants, or other professionals

• Online directories with verified estate law practitioners

Look for a lawyer with specific experience in wills and estates, rather than general practice. Clarify who the lawyer represents; in most cases, the lawyer acts for you as executor, not the beneficiaries (who may, however, obtain separate counsel if needed).

Legal Fees and Payment

Legal fees are considered a proper expense of the estate, not a personal cost to you.

• Lawyers may charge:

  • Hourly rates, or

  • Flat fees or packages for routine probate and estate administration

Discuss the billing structure upfront and request an estimate or fee range. In simple estates, legal fees might range from $2,000 to $5,000; in complex or litigious matters, fees can be significantly higher.

Note: Beneficiaries often scrutinize legal costs, since they reduce the estate’s residue. Courts may disallow excessive or unnecessary legal fees if incurred due to executor inefficiency or poor judgment. To manage legal costs:

• Stay organized.

• Respond promptly to requests.

• Consolidate questions when possible.

Clarifying the Scope of Work

Avoid duplication by clearly dividing responsibilities between you (as executor) and the lawyer. For example, the lawyer might:

• Draft and file the probate application

• Prepare notice letters and any required advertising to creditors

• Advise on will interpretation or setting up testamentary trusts

• Draft interim and final release forms

• Assist with executor compensation documentation

You, as executor, might:

• Collect and inventory assets

• Maintain records and estate accounts

• Communicate regularly with beneficiaries

• Pay bills and manage estate bank accounts

Agreeing on roles in advance improves efficiency and avoids confusion.

Communicating Effectively with Your Lawyer

Maintain regular communication, especially regarding:

• Notices or letters received from third parties (e.g., a disgruntled beneficiary’s lawyer)

• Tax issues or large asset sales

• Emerging disputes or uncertainties

However, be mindful that each consultation may be billable. It is thus advisable to group questions where possible and keep written records.

Executor Protection Through Legal Advice

Hiring a lawyer offers more than expertise. It provides a layer of liability protection. If you follow legal advice in good faith and a problem later arises, courts are unlikely to find you personally at fault. Additionally, lawyers typically carry professional liability insurance. In the rare event of a serious legal error that causes estate losses, the estate may be eligible for compensation through that insurance.

Consulting and Hiring an Accountant

While not every estate requires professional accounting support, many executors benefit from engaging an accountant, especially when the estate includes significant assets, multiple income sources, business interests, or tax planning opportunities.

Situations Where an Accountant Adds Value

An accountant can be of significant value in the following areas:

• Final T1 Tax Return and Optional Returns

Preparing the deceased’s final personal income tax return (T1), as well as optional returns such as the Return for Rights or Things, is often best handled by an accountant.

• An accountant ensures all sources of income (employment, pension, dividends, RRSP/RRIF withdrawals, capital gains) are properly reported.

• An accountant can also optimize the return by applying carry-forward losses, charitable credits, and evaluating whether optional returns reduce the estate’s overall tax burden.

• Estate T3 Tax Returns:

If the estate earns income after death (interest, dividends, rent, capital gains), a T3 Trust Income Tax Return must be filed.

• Accountants help track income, identify eligible deductions, and properly allocate income to beneficiaries (via T3 slips) if desired.

• They also manage the estate’s Graduated Rate Estate (GRE) status and ensure compliance with trust tax rules.

• Business or Rental Property Income:

If the deceased operated a business or owned rental real estate, an accountant can:

• Prepare final business financials

• File necessary business tax returns or statements

• Coordinate with corporate accountants if the deceased owned a private corporation

• Tax Clearance Certificate (Form TX19):

Some executors complete the TX19 request themselves, but many accountants handle this step as part of their tax services, especially since they’ve prepared the related tax filings.

• Tax Treatment of Asset Transfers:

If you’re transferring assets in kind (e.g., stocks, real estate), an accountant can confirm how to document the deemed disposition or rollover (e.g., for transfers to a spouse).

• Estate Accounting Assistance:

In more complex estates, an accountant may help reconcile the executor’s records or prepare a Statement of Accounts for beneficiary approval. Note that this task is often handled by the executor or lawyer, but an accountant can assist if the records are disorganized or if a formal passing of accounts is required.

Accounting/Tax Preparation Fees

• Accounting and tax preparation fees are proper estate expenses and may be deductible on the estate’s T3 return.

• Most accountants charge:

  • Flat fees for standard tax filings, or

  • Hourly rates for more involved estate work

• If the deceased used an accountant previously, you may wish to retain the same professional, who is likely already familiar with prior filings, carryovers, and asset histories.

Caution: While tax software may suffice for a basic return, executor-filed returns often miss key planning opportunities (such as optional returns or donation optimization). Moreover, errors may delay tax clearance or trigger reassessment.

Accountant vs. Tax Lawyer

For most estates, an accountant is fully equipped to handle compliance and routine planning. However, in estates involving:

• Cross-border issues

• Trust structuring (e.g., spousal or alter ego trusts)

• Tax disputes, audits, or rulings

a tax lawyer may be consulted for formal legal interpretation or strategic advice. Often, the estates lawyer or accountant will identify when it is appropriate or advisable to involve a tax lawyer, with whom they will coordinate as needed.

Working with the Accountant

To support accurate and efficient tax return preparation:

• Provide the date-of-death values of all assets.

• Include cost bases if known (e.g., from past capital gain schedules).

• Submit the deceased’s prior-year tax returns to identify losses or credits.

• Share a copy of the will, especially if it contains charitable bequests or trust provisions.

The more complete the information, the smoother the process and the lower the likelihood of costly follow-up.

Coordination with the Lawyer

Accountants and estate lawyers frequently collaborate on:

• Preparing the tax clearance certificate request

(The lawyer may file the TX19 using financials provided by the accountant, or the accountant may file it directly)

• Charitable donation planning

(The accountant calculates optimal tax usage; the lawyer ensures proper legal authority and documentation.)

• Timing of final distributions

(Lawyer and accountant both act to ensure that taxes are fully paid or reserved for before clearance and payout.)

Tip: Confirm that either the lawyer or accountant is assigned to prepare and submit the TX19, so this critical step is not overlooked.

Other Professionals

Property Appraiser or Real Estate Agent

• If the estate includes real property, you may need a certified appraiser to provide a date-of-death valuation for probate, tax, or fair distribution.

• When selling real estate, hiring a real estate agent is typically advisable. Agents handle marketing, negotiations, paperwork, and coordination with the estate lawyer.

• Choose an agent experienced in estate or probate sales, as they may also have connections to estate contents sale specialists.

Agent commissions are paid by the estate and considered a valid administration expense.

Personal Property Appraisers

• If the estate contains valuable art, antiques, collectibles, or jewelry, consider hiring a specialized appraiser.

• Accurate valuations are important for:

  • Insurance

  • Fair beneficiary distribution

  • Tax reporting (especially if art or collectibles trigger capital gains)

Note: Personal-use items are generally not taxable unless they qualify as listed personal property (LPP), such as art.

Auctioneers or Estate Sale Organizers

• For liquidating household contents, an auctioneer or estate sale company can be helpful.

• They typically manage:

  • Item pricing

  • Advertising and marketing

  • On-site sales or auctions

• These professionals are paid a percentage of the proceeds, but their services often lead to higher returns and save considerable time.

Tip: Check auctioneer references and confirm they have adequate insurance coverage to ensure that items are handled properly.

Investment Advisor or Financial Planner

• If the estate holds investment accounts or securities, and administration will take time, it may be prudent to engage an advisor to:

  • Manage funds in the interim

  • Rebalance portfolios conservatively

  • Assist with in-kind transfers to beneficiaries

• The deceased’s prior advisor may also provide useful insights into cost base information, investment intent, or succession planning.

Caution: Ensure investment decisions align with the estate’s best interests, not personal preferences.

Business Valuator or Broker

• For estates that include private company shares or sole proprietorships, hire a professional business valuator or broker to:

  • Establish fair market value

  • Facilitate buyouts or sales

  • Provide documentation for tax reporting

• Valuators also help to determine eligibility for the lifetime capital gains exemption on qualified small business shares.

Tip: Coordinate with the estate’s accountant and lawyer for proper structuring and tax implications.

Mediator

• In estates in which family tension is present but there is no full litigation, a mediator may help resolve disputes (e.g., over sentimental items or perceived unfairness).

• As a neutral third party, a mediator can help beneficiaries reach agreement without potentially costly court involvement.

Tip: Mediation is especially useful where sibling rivalry or differing expectations could delay administration.

Trust Company or Corporate Executor

• If you feel overwhelmed, a trust company may be appointed (if permitted by the will or with court approval).

• Options include:

  • Resigning and having a professional executor appointed

  • Delegating tasks under an agency agreement (you remain executor in name but professionals manage operations)

Trust companies charge fees comparable to executor compensation and bring professional oversight and neutrality, especially valuable in complex or contentious estates.

Coordinating a Team of Advisors

It is common to engage several professionals simultaneously, such as:

• A lawyer (probate, legal compliance)

• An accountant (tax returns and clearance)

• A real estate agent (property sale)

• A financial advisor (investment oversight)

Tip: Take care to ensure that outside professionals are aware of each other’s involvement and share relevant documents with permission. Consider scheduling a joint call or meeting early on to align on strategy.

Costs vs. Benefits

While professional services add to estate expenses, they often:

• Save time

• Prevent costly mistakes

• Reduce executor liability

• Maximize estate value through tax planning or market-optimized sales

Tip: A competent accountant and other professionals may save more in taxes than their fee costs.

Executor’s Liability and Use of Experts

• If you prudently hire a qualified professional and rely on their advice in good faith, you are generally not personally liable for any resulting loss.

• However, failing to consult an expert when one would have reasonably prevented a problem (e.g., significant tax errors) could expose you to breach of fiduciary duty claims.

Note: Engaging appropriate advisors is part of discharging your executor obligations responsibly.

Communicating with Beneficiaries About Professional Fees

Set expectations early. For example: “To ensure proper administration, I will be hiring a lawyer to assist with probate and an accountant for the tax filings. Their fees will be paid from the estate.”

Most beneficiaries understand that engaging professionals is both normal and prudent. If someone objects, weigh the potential savings against the risk of making costly errors.

Using Free or Low-Cost Resources

Some helpful (and free) tools and supports are available:

• Provincial law societies, public trustee offices, and legal information websites (e.g., Clicklaw BC, LawHelp Ontario)

• CRA resources, including:

  • Preparing Returns for Deceased Persons

  • T3 Trust Guide

• In certain provinces, small estate procedures may allow you to avoid probate or use simplified forms.

• Free checklists or templates available from estate advisors, banks, or legal associations. Tip: Be realistic and honest in assessing your own capacity and knowledge. Even with free resources, professional help is often worth the cost, especially for medium or large estates.

In Summary: Use Professionals Wisely

Serving as an executor does not require doing everything yourself. It does require that you ensure everything gets done properly. In many estates, engaging the right professionals is not just helpful, it is essential.

Think of your role as that of a project manager or coordinator. Your responsibility is to oversee the process, make informed decisions, and delegate tasks appropriately to qualified experts. The estate pays for these services, so when professional assistance is justified, it is a smart investment, which protects both the estate’s value and your own liability.

Tip: “Don’t be penny wise and pound foolish.”

Up next is a review of special scenarios that can complicate estate administration (such as business interests, foreign assets, or family disputes) and how to navigate them, often with the help of the professional allies we have just discussed.