This article is intended for general information only and is written from a British Columbia perspective. Estate laws, executor compensation, trustee duties, probate rules, tax treatment, and trust administration vary by jurisdiction. Legal and tax advice should be obtained before making estate planning decisions.

I have some version of the same conversation with almost every client. When we review their estate plan and discuss who they have named as executor, the answer is often very practical:

“My son will handle it.”

“My daughter is organized.”

“My best friend knows me best.”

“One of the kids can do it.”

Most people choose an executor based on trust, proximity, family obligation, or simply because someone has to be named. Then I ask a different question – do they understand what they are being asked to manage? Being named executor is often framed as an honour. In reality, it is a job. It can be time-consuming, technical, emotional, and legally accountable. It is not simply being handed an inheritance. It is being handed responsibility.

In British Columbia, executor compensation is specifically contemplated under provincial statute. Under section 88 of the B.C. Trustee Act, a personal representative may be entitled to a fair and reasonable allowance for their care, pains, trouble, and time, up to a maximum of 5% of the gross aggregate value of the estate, including capital and income. In certain cases, there may also be an annual care and management fee of up to 0.4% of the average market value of the assets. That does not mean an executor automatically receives 5%. The amount must be reasonable in the circumstances and can depend on the size and complexity of the estate, time spent, responsibility assumed, skill required, and results achieved.

When I explain this to clients, I almost always hear the same response: “Oh, they would never charge.”

Maybe they would not. But maybe they should.

The role of an executor is often much bigger than people realize. An executor may need to locate the will, arrange the funeral, notify beneficiaries, secure assets, apply for probate, deal with financial institutions, gather valuations, pay debts, file final and estate tax returns, obtain tax clearance, keep records, sell or transfer property, and ultimately distribute the estate. Then there are the practical realities that rarely get discussed. Someone has to empty the fridge, take out the garbage, lock the doors, locate keys, maintain insurance, determine whether vacant home coverage is needed, cancel services, forward mail, protect personal belongings, deal with pets, meet realtors, arrange cleaning or repairs, pay utilities, find tax slips, track down passwords, and sort through years of paperwork.

That work takes time, judgment, and emotional capacity, often while the person responsible is grieving. Executor compensation is not intended to be a windfall; it recognizes that estate administration can involve real work, real responsibility, and real risk. In practice, executor issues often become most difficult when technical decisions are filtered through grief, fairness, family history, and emotion.

When an executor is also a beneficiary, the role can be difficult for the family to separate from the inheritance. Decisions about timing, communication, expenses, personal belongings, professional advice, and compensation can all be viewed through the lens of fairness. Compensation may be warranted, especially where the work is significant. But if expectations were never discussed, even a reasonable fee can feel personal. This is why the executor decision should not be made only by asking who is willing to do the job. It should also consider how that appointment may be experienced by the rest of the family when the estate is being administered.

It is also important to distinguish between an executor and a trustee. An executor administers the estate after death while a trustee manages assets held in trust. The same person can be appointed to both roles, but the responsibilities can be very different. An executor’s role may be intense but finite, whereas a trustee’s role can continue for years. If a child or grandchild’s inheritance is held in trust until age 21, 25, or later, the trustee may be responsible for managing those assets for a long period of time. That can include investing funds, approving distributions, coordinating with a guardian, considering education and living expenses, filing trust tax returns, keeping records, and exercising discretion over when and how money is used. That is not just administration; it is an ongoing fiduciary responsibility. This is especially important when an estate plan involves executors, trustees, and guardians who need to work together. A guardian may be raising minor children while a trustee may control the funds available for those children. An executor may be responsible for settling the estate and funding the trust. If those people do not communicate well, understand their roles, or share similar values, the plan can become difficult to administer.

This is one of the reasons I often believe corporate executors and independent trust companies deserve more consideration. A trust company does not remove the emotional reality of death. But it can remove a significant administrative and fiduciary burden from loved ones. A corporate executor or trustee can bring process, experience, continuity, neutrality, recordkeeping, and technical knowledge. It has systems for probate, tax coordination, property oversight, beneficiary communication, trust accounting, and ongoing administration. It does not become overwhelmed by grief, move away, lose capacity, or die. Many clients assume a corporate executor will be more expensive than naming a family member, but that is not always the right comparison. In British Columbia, an individual executor may be entitled to seek compensation of up to 5% of the estate, subject to reasonableness. By comparison, some corporate executor fee schedules may start in the range of approximately 3.5% to 4.25% and then tier down depending on estate size, complexity, and services required. Fees vary by institution and should always be reviewed, understood, and negotiated in advance where appropriate.

A family member may still be the right choice, particularly if they are organized, financially literate, emotionally steady, and willing to serve. The key is to make the appointment intentionally, recognizing that love and trust are not the same as time, technical ability, neutrality, or long-term availability. The person who agrees to act today may not be the right person 10, 15, or 25 years from now. If you are considering a corporate executor or trustee, meet them before naming them. Ask about their process, fees, beneficiary communication, reporting, timelines, and how they work with your existing advisors. 

Choosing an executor should not be a default decision based on who is closest to you or who is most likely to say yes. It should be a deliberate assessment of who has the time, temperament, technical ability, and judgment to carry out the role properly. When you name an executor, you are not only choosing who will administer your estate – you are choosing who will carry the burden of your final affairs. Make that decision with the same care you put into deciding who receives your wealth.

 Alysha Tse, TEP, FEA, CFP, CLU, CHS, CIM, MTI, MFA-P 

Wealth Advisor, Associate Portfolio Manager, Chernick James Tse & Associates Wealth Counsel, Richardson Wealth

Richardson Wealth Limited is a subsidiary of iA Financial Corporation Inc. and is not affiliated with James Richardson & Sons, Limited. Richardson Wealth is a trademark of James Richardson & Sons, Limited and Richardson Wealth Limited is a licensed user of the mark. Richardson Wealth Limited, Member Canadian Investor Protection Fund.