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As baby boomers prepare for the next phase of their lives and plan their estates, a recent survey for BMO Financial Group found that there is mass confusion over what the role of an executor actually entails.

According to the BMO / Ipsos Reid survey of Canadian boomers, when given a choice of nine options, only five per cent of boomers correctly identified the tasks an executor is responsible for completing. While most (88%) correctly chose the administrative tasks of: ‘pay the bills, redirect all mail, cancel subscriptions' and 88 per cent also selected ‘review all bank and investments statements and close accounts', almost one-third (31%) of boomers incorrectly selected ‘take care of the deceased's children until they reach the age of majority' and close to one in four (24%) mistakenly thought they needed to adopt the deceased's pets.

Not only are boomers confused about the tasks the executor role requires, they also have misconceptions about how long it takes to complete the work, which usually takes longer than a year. While more than a third (37%) thought it would take between 6-12 months, 39 per cent of men and 26 per cent of women said one-to-five months and only 17 per cent said it would take more than a year.

“This level of confusion over what it means to be an executor is quite surprising,” said Jean Blacklock, Vice President and Managing Director, Wealth Services, BMO Financial Group. “Based on our ongoing research, we know that boomers have competing priorities and concerns, so it's important for them to understand that an estate isn't wrapped up in a couple of months – that being an executor is not a quick or easy job. They need to keep this in mind if they are asked to act as an executor or if they're choosing an executor for their own wills.”

Executor role conjures up negative feelings
The survey also revealed that the confusion over the executor role is often coupled with negative feelings towards this responsibility. According to the findings, boomers who have acted as an executor, or who know someone who has, have some negative association with the experience. The top three choices to describe the experience were: time consuming (39%), stressful (30%) or difficult (26%). Only a small percentage described it as positive (13%) and 11 per cent said it was rewarding. Women were more likely to have negative feelings about the role.

While 41 per cent of boomers said they would feel honoured to be named an executor, 35 per cent said they would feel nervous or intimidated. Only 21 per cent said they would feel confident and 16 per cent didn't know how they would feel.

Boomers would still name a family member as an executor
Yet, despite the confusion and mixed feelings toward the role, two-thirds of boomers said they would choose a family member as the executor of their wills –a spouse (30%), a child (21%) or a sibling (18%). More women than men are likely to appoint a child (25% vs. 16%). Only eight per cent would choose a professional – either a lawyer (7%) or a trust company (1%). Interestingly, almost half of boomers (46%) indicate that, if they chose to decline the role of executor, they would decline based on the grounds that ‘they didn't feel they had an understanding of or the knowledge to carry out all that is required.' More than a third of decliners (36%) would decline on the grounds that they live in a different province or country.

“It is perplexing that some respondents indicate they would name a relative as their executor yet admit they might decline to carry out this responsibility for someone else if they felt they didn't understand the role,” said Blacklock. “As boomers turn to the important tasks of planning their own estates as well as acting as executors on behalf of others, seeking professional advice is a good first step. When it comes to administering an estate, retaining the assistance of a trust company like BMO Trust is a practical, cost-effective option.

“Estate planning is just one of the many areas that boomers need to start thinking about, in addition to their retirement plans, and BMO is here to assist them with identifying and addressing the key issues associated with the next phase of their lives,” added Blacklock.

BMO helps clients appointed as executors
BMO Financial Group has developed a guide, available at all BMO branches, to help provide executors with the information they need to carry out their duties. For executors seeking direct assistance, BMO Trust Company can take on some or all of the administration – from the initial review of the will to the final distribution of the assets. More information, including a comprehensive list of executor tasks and tips on how to choose an executor, is available at www.bmoinvesting.com/settling_the_estate.

The survey was conducted by Ipsos Reid for BMO Financial Group. 1,430 Canadians aged 45-60 were surveyed between May 22 – May 27, 2007.

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