Common Pitfalls and How to Avoid Them

Even well-intentioned executors can make mistakes that lead to delays, legal issues, or personal liability. In this section, we list common pitfalls in estate administration and provide tips on how to avoid them. By being aware of these, you can proactively take steps to stay on track and out of trouble. Many of these have been hinted at in earlier sections, but we’ll consolidate them here as a handy checklist of “What not to do” – paired with the “do this instead.”

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Failing to Keep Proper Records

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Early or Undue Distributions

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Ignoring or Missing Tax Obligations

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Not Communicating with Beneficiaries

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Favoritism or Unequal Treatment

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Overlooking Assets or Debts

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Blurring Executor and Personal Roles

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Missing Deadlines (Probate, Filings, Etc.)

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Undervaluing or Overvaluing Assets

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Not Seeking Help When Needed

Let’s recap the key pitfalls in a concise checklist for easy reference:

Keep Clear Records – Avoid poor tracking, lost receipts, or commingled funds.
Pay Debts and Taxes Before Distributions – Avoid premature payouts that could create liability.
Fulfill All Tax Obligations – Avoid missed returns and ensure you get CRA clearance.
Communicate Transparently – Avoid silence that leads to mistrust or disputes.
Act Impartially – Avoid real or perceived favoritism or self-dealing.
Search Thoroughly for Assets and Debts – Avoid missed accounts, bills, or creditor claims.
Separate Personal and Executor Roles – Avoid conflicts of interest or fiduciary breaches.
Track and Meet Deadlines – Avoid penalties, delays, or legal setbacks.
Ensure Fair Market Value – Avoid undervaluing or mishandling asset sales.
Seek Professional Help When Needed – Avoid costly errors by knowing when to delegate.

By staying mindful of these common mistakes - and proactively managing them - you’ll help ensure a smooth, effective estate administration that honours the deceased’s wishes and protects both the estate and yourself.