SOURCE: Advocis

Advocis

June 06, 2016 08:00 ET

Protect Yourself Against the Risks of Being an Executor

TORONTO, ON--(Marketwired - June 06, 2016) - Executors can be held personally liable for any decisions they make in the administration of an estate and potentially endanger their own financial future. Executors have to deal with as many as 17 different professionals in administering an estate which leads to confusion from the onset.

Advocis, The Financial Advisors Association of Canada, recognizes the liabilities that executors can face when selling houses or managing finances of the estate. Executors wrongly assume that their liability is removed when a professional handles these critical tasks, however even if an executor sources professional help they are still legally responsible. To assist the public with offsetting the potential dangers of being an executor, Advocis is now offering ERAssure® Executor Liability Insurance through Advocis Broker Services (ABS) to protect both an executor and the estate from many of the potential legal liabilities.

The typical executor is a family member or trusted friend. Many of these estates are managed by people with little or no experience in estate administration and while the size of the estate might suggest less risk, the reality is that litigation is not driven by the size of the estate, but rather by irrational and emotional behavior that is independent of estate size.

"We believe that executor liability insurance is an important product for financial advisors to discuss with their clients. Financial advisors build long-term relationships and can help educate clients on the risks associated with being an executor," says Greg Pollock, president and CEO, Advocis.

Even though an executor will act in good faith, errors or disagreements can occur resulting in the executor and the estate being sued by beneficiaries or creditors. Other factors can also add to the risks faced as an executor, such as the current economy, relationships within families, and the individual personalities involved. Despite the best intentions and efforts by the executor, the expectations of the beneficiaries or creditors might not be met.

"ERAssure has been the Exclusive Preferred Supplier of estate administration insurance products to the Canadian Bar Association since 2011. Executor liability insurance is meaningful protection that all executors should consider carefully. Advocis is to be commended for offering this option to its members' clients," says John Hoyles, CEO, Canadian Bar Association.

About Advocis

Advocis, The Financial Advisors Association of Canada, is the association of choice for financial advisors and planners. With more than 11,000 members in 40 chapters across the country, Advocis is the definitive voice of the profession, advocating for professionalism and consumer protection. Advocis works with decision-makers and the public, stressing the value of financial advice and working toward an environment in which all Canadians have access to the advice they need. Follow us on Twitter @advocis or visit www.advocis.ca.

Contact Information

  • For media enquiries or more information, please contact
    Darlene Francis
    Director, Corporate Communications and Marketing
    416-342-9896 / 1-800-563-5822, ext. 9896
    dfrancis@advocis.ca.