Are you keeping secrets?
Have you discussed your personal financial information with the person that you have chosen as your Executor?
According to a recent FP Canada survey, 33% of Canadians are uncomfortable with talking about finances with others, and within that poll, another 42% of Canadians are "Somewhat Uncomfortable." I find it interesting that when asked about discussing sex with others, Canadians are actually more relaxed with sharing closed-door details than their finances!
The FP Canada survey statistics cause me to wonder how we as Canadians can be setting up our Executors for success if we do not have critical financial conversations with the key stakeholders that will be running the estate.
I am a Professional Executor, and I am always honored when someone chooses to trust in me for this specialized service, as I take great pride in carrying out someone's wishes after they have passed away. Once I am selected to be an Executor and the Will has been drafted, I meet with the person to review the assets I will be managing upon their passing. This conversation is generally very heavily focused on finances.
I often see the discomfort with new clients who share the details of their financial lives and don't even know me very well yet. However, with time and a trusted professional relationship, they come to terms with the concept that they have to share the estate's assets' details to run an efficient estate.
Sometimes, clients do not want to share anything at all. They are happy to check off the box that they found a professional to be their Executor, and that is good enough for them. I then must continue to be persistent and ensure we have annual meetings so that I can put together some semblance of a blueprint that I can follow when the time comes to administer the estate.
The art of not sharing pertinent information with the Executor can be frustrating while working on the estate's administration. I started to think about the non-professional Executor, as they are in a similar boat, and in some cases worse off; they don't even know that they are the Executor! I've started to wonder what secrets we keep from our Executors and what are the three most crucial pieces of information we should share?
1. Inform your Executor that they have been chosen: Not telling someone is a common piece of withheld information that I hear about when I speak with Executors. We name someone in our Will to administer our entire estate, our legacy, and our earthly possessions, yet we do not tell them that they have been chosen! Most Executors that I work with had no idea that they were picked, and even if they did know, they did not have the vaguest idea of what the job entailed. Not informing your Executor that they have been hired is problematic for two reasons. 1) You are not allowing the opportunity for the person to accept or decline the role of being your Executor before your death. The risk is that you are unaware of knowing if they want to take the job or may have to choose an alternate person. 2) Executors should be informed of the position and requirements before accepting the role. I would love to see more Executors attend training to learn about their fiduciary duties so that they understand what they are getting into beforehand.
2. Share the estate's details: A large portion of an Executor's job is to deal with the estate's financial assets. It can be incredibly difficult when an Executor does not know what belongings they should be looking for, or dealing with. I understand that our society finds the topic of money to be taboo, it can be uncomfortable to share these personal details with someone else. If sharing the details of your assets makes you uncomfortable, then consider putting everything that your Executor would need to know in a a binder and let them know where they can find it in the case of an emergency. This could shave months off the estate's administration as your Executor won't have to play the role of the private investigator.
3. Consider digital assets and passwords: We live in a digital age; I have passwords to access all my passwords! There are emails, social media accounts, shopping accounts, point accounts, the list is endless. Trying to close down all the online profiles can be an incredible feat. The rules and privacy laws vary by the company that owns the platform and the country in which it operates. Write down accounts and list passwords on a separate sheet; keep this information in a secure place (perhaps a safe). Give the Executor a key or the code; you will be surprised by how much of a help and time saver this will be to your Executor. Some digital profiles allow for the set up of a person to be responsible upon the death of the account holder, read those user agreements or instructions, and set up the account for maximum estate efficiency.
A list of three items is by no means enough information that should be shared with an Executor; however, it is a great way to start the conversation. We, as a society, need to become more comfortable with these discussions. How can we expect an Executor to do a good job if we are unwilling to share vital information to succeed in the role? Are the secrets that you are keeping worth the mess and confusion that you will be remembered for?