When a trust is being made, an executor is being appointed. In Canadian estate law, multiple executors can be appointed in order to administer a trust or estate. While appointing multiple executors, it is essential to carefully select individuals because in case of multiple executors of an estate collaboration between the executor is the key for stress-free administration.
Appointment of multiple executors can have pros as well as cons. It can be beneficial for reasons like:
- Pros of appointing Multiple Executors
Division of Tasks – When multiple executors are appointed, the workload gets divided, hence reducing the burden on a single executor.
Different Expertise – Every individual brings a unique a set of skills and knowledge. This may bring efficiency and new ideas to the table. Where there are multiple executors and they are differently talented, each one of them can be assigned different tasks depending on their expertise.
Checks and Balances – More than one executor means greater extent of check and balance. Misappropriation of estate administration can be better checked by the appointment of multiple executors.
- Cons of appointing Multiple Executors
Difference of Opinion – Multiple executor mean multiplicity of thoughts. Possibility of disagreement on decisions is bound to happen. Disagreements often lead to delays hence slowing down tasks like distributing assets, paying debts, or managing investments, which can frustrate beneficiaries or harm the estate’s value.
NOTE: While appointing the executor, a testator needs to check whether the executors can work together and understand the complexity of the estate. It is also of note that disputes do arise in case of multiple executors so in order to avoid inconsistencies or disagreements, a third party can be appointed by the testator to avoid potential deadlocks.
Increased financial Liability – When Multiple executors are appointed, each of them have to be compensated for their tasks. In such case, the testator has to expand the amount of compensation that he/she needs to provide to the executors.
Resignation/Removal of Executor – If any of the executor wishes to resign or he/she is being removed from the designation of an executor of an estate, this may create hurdles. For filing up the vacant executor position, then again proper legal procedures have to be followed which are time-taking.
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