Canadians don't know what is expected of them as executors
of an estate, RBC poll finds
Greatly underestimate time, tasks involved
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Survey
results (pdf 11 pages,191
kB) |
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TORONTO, November 2, 2006 — While one third
of Canadians have been asked to act as the executor of an
estate, less than half of Canadians say they are familiar
with what an executor's role and responsibilities include,
according to an RBC Financial Group poll released today.
Poll findings show that 47 per cent of Canadians feel it
is an honour to be asked to serve as an executor, but two-thirds
(68 per cent) would have concerns about the role. Specifically,
39 per cent say they wouldn't really know what they'd have
to do, while four in ten (38 per cent) are concerned about
family disagreements, and one-third (32 per cent) are concerned
about legal and liability issues.
The RBC poll also revealed that one-quarter (27 per cent)
of Canadians have no idea how long it will take to fulfill
the duties of an executor. The majority (54 per cent) believe
it will take less than one year; 37 per cent say it will take
less than six months.
"Depending on the size and the complexity of the estate,
on average the actual time it can take to settle an estate
is a minimum of 18 months -- it can take as long as four years,
if a family member is acting as the executor," explained
John Hamilton, president, RBC Estate and Trust Services. "Our
survey also revealed that few Canadians are aware of the large
number of tasks involved. There are as many as 70 different
duties which an executor may be expected to carry out."
When asked to name some of an executor's specific responsibilities,
survey respondents most often cited "administration/distribution
of inheritance to family/beneficiaries" (51 per cent),
followed by "pay debts/income taxes/close accounts"
(41 per cent), and "execute/explain wishes/contents of
the will" (39 per cent). However, other essential tasks
- such as establishing and selling assets, acquiring necessary
documentation, dealing with government, lawyers or other officials
and taking care of dependents - were each cited 10 per cent
or less by respondents.
"It can be quite overwhelming for family members or
friends to try to fulfill multiple responsibilities as executor
at a time when they themselves often are grieving for the
loss of someone close," added Hamilton. "People
sincerely want to do the best they can as an executor to fulfill
the obligations placed upon them by a family member or friend.
They just aren't sure what those obligations entail."
As to who they would choose to be their executor, a spouse
or partner was named by the largest number (39 per cent) of
all respondents. The main reason cited for this choice: trust
(80 per cent). "While this is important for peace of
mind, it's also worth having some open conversations with
the person that you would like to appoint as your executor,
so there can be a good understanding of the role and all the
responsibilities involved," Hamilton advised.
Findings at a Glance
Main concerns of Canadians who said "yes"
to acting as an executor
- Family disagreements/arguments (16 per cent)
- Possible legal/liability issues (15 per cent)
- Unsure about the best way to handle estate (13 per cent)
- Amount of time involved - including "take up too
much personal time" (12 per cent)
Main concerns of Canadians who said "no"
to acting as an executor
- Family disagreements/arguments (37 per cent)
- Legal/liability issues (20 per cent)
- Unsure about best way to handle estate (13 per cent)
- Take up too much time (8 per cent)
Person already chosen or most likely to be chosen to act
as executor by respondents
- Spouse/partner (39 per cent)
- One of their children (25 per cent)
- Sibling (22 per cent)
- Other family member (19 per cent)
- Family friend (10 per cent)
- Professional (8 per cent)
Main reason for choice of executor and top three people
chosen
- Is trusted: Spouse/partner (80 per cent); Family friend
(80 per cent); Sibling (80 per cent)
- Is responsible: Other family member (61 per cent); One
of their children (58 per cent); Sibling (58 per cent)
- Has necessary skills: Professional (65 per cent); Family
friend (37 per cent); Other family member and sibling (tied
at 33 per cent)
- Has experience as executor: Professional (60 per cent);
Family friend (17 per cent); Other family member (13 per
cent)
Type of assistance most appreciated by Canadians acting
as executors
- Tax claims/forms (32 per cent)
- Dealing with beneficiaries (16 per cent)
- Managing selling of investments (9 per cent)
- Managing selling of real estate (7 per cent)
- Collecting assets (5 per cent)
- Insurance claims (4 per cent)
- Assistance with everything/all of it (2 per cent)
- Other (3 per cent)
- None (1 per cent)
- Don't know (21 per cent)
These are the findings of an Ipsos Reid Canada/RBC Financial
Group poll conducted between August 11 and August 15, 2006.
For the survey, invitations were sent out to a representative
sample of Canadian adults 18 years of age or older, resulting
in 2,352 completed online interviews. With a sample of this
size, the results are considered accurate to within +/-2.0
per cent, 19 times out of 20.
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NOTE TO EDITORS: In Quebec, an executor is referred
to as a liquidator.
Media contact:
Kathy Bevan, Media Relations, (416) 974-8810
For full tabular results, please see the Ipsos Reid website
at www.ipsos.ca.
Downloadable graphics also available at www.rbc.com/newsroom.
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