EXECUTOR E & O
EXECUTOR RISK
- Changing Composition of Families
- Unstable Economy
- Beneficiary Expectations
- Increasing Litigation
- DIY Professionals
- Record level of debt
- Everyone’s an expert
- Not covered by other insurance
PERSONAL LIABILITY OF THE ESTATE TRUSTEE OR EXECUTOR
- Executor become personally liable for their actions as soon as they start to act for the estate – usually at the funeral.
- Beneficiaries and Creditors (Breach of trust or investment loss) or Third parties (Torts)
- Improperly interpreting, or not properly following the term of the Will
- Delay in payment to beneficiaries
- Missing an heir
- Improperly preferring one creditor over another
- Not selling assets in a timely manner
- Failure to keep accurate records of the administration
- Unreasonably prosecuting or defending litigation on behalf of the Estate
- Improper delegation of duties
If you are now acting as an executor, you can arrange an Executor Liability Insurance.
Executors can be held personally liable for mistakes they make in settling an estate. If the beneficiaries suffer a loss, the executor may be required to reimburse the financial loss… or cover the cost of the beneficiaries’ legal costs to collect.
This is an insurance policy that protects against the costs of legal fees and restitution orders from a Court because the executor has made an unintentional error managing the estate which impacted estate assets.
This protection can be difficult to access if the estate has been open for some time, or if there are problems that suggest a lawsuit is looming. It needs to be applied for as close to the date of death as possible. Not all estates will be eligible for coverage.
Executors can be held personally liable for mistakes they make in settling an estate. If the beneficiaries suffer a loss, the executor may be required to reimburse the financial loss… or cover the cost of the beneficiaries’ legal costs to collect.
This is an insurance policy that protects against the costs of legal fees and restitution orders from a Court because the executor has made an unintentional error managing the estate which impacted estate assets.
This protection can be difficult to access if the estate has been open for some time, or if there are problems that suggest a lawsuit is looming. It needs to be applied for as close to the date of death as possible. Not all estates will be eligible for coverage.
WHAT IS COVERED IN THIS EXECUTOR LIABILITY INSURANCE?
- Liability arising out of negligent administration of an estate
- Defence costs associated with defending an action based on such negligence, whether actual or alleged
- Available for estate across Canada (excluding Quebec)
- Policies and limits are Canadian dollars
- Includes foreign assets but claims must be brought in a Canadian Court and judged in Canadian Law
