Serving as someone’s executor is a role with significant responsibilities. One critical task is obtaining, managing and retaining the essential documents for a deceased person. In fact, proper documentation is crucial for the legal administration of an estate.

During our 20+ years as professional organizers in Vancouver, Out of Chaos has helped many people with estate-clearing. Occasionally, people call us when a person passes away. Other times, we help adult children move their parents into a senior living community. Whatever the situation, it can be a challenging situation for everyone.

However, you can ensure a smoother transition and help trustees and executors fulfill their duties efficiently. Firstly, prepare and organize critical documents in advance of an unfortunate event such as incapacitation or death. Then, regularly update your information and maintain a clear, accessible record of all important documents and assets.

Seek Expert Professional Assistance

Decluttering and downsizing your home is the perfect opportunity to review your estate plan. We always advise people to seek assistance from lawyers and financial advisors. Working with these professionals helps avoid costly mistakes. Additionally, it ensures your executors can settle your estate efficiently and in accordance with your wishes.

Likewise, we recommend that executors seek the guidance of a lawyer and a financial advisor. Lawyers can provide essential legal advice, help navigate probate court proceedings, and ensure compliance with provincial laws. Financial advisors can assist in planning for taxation obligations and managing the estate’s assets and investments. Lawyers and financial advisors will also provide customized information about what documents trustees and executors need to keep and for how long because estates may have different requirements depending on their unique situation and location. (For example, each province and country has different laws).

That being said, here is a guide on some key documents an executor/trustee must keep and why they are important.

Essential Documents for a Deceased Person

Death Certificate

The death certificate is legal proof that a person died. The executor needs it to close accounts and wind down the estate. Obtain multiple certified copies because many institutions require an original or certified copy rather than a photocopy.

Last Will and Testament

The will is a legal document that appoints someone as an executor and outlines the distribution of the estate’s assets and guardianship of minor children and/or pets. If someone dies without a will (called dying intestate), the courts determine who is entitled to the assets.

If someone dies and the heirs can’t find the will, the courts may declare the person as dying intestate. However, it depends on the circumstances—and, of course, each province has slightly different laws regarding this. What I can say with certainty is that preparing a will with a lawyer and ensuring your executor/heirs know where you keep it makes their lives much easier after you pass away.

Letters Testamentary/Letters of Administration

The probate court issues these documents after determining the will is genuine. They authorize the executor to act on behalf of the estate and are required to access and manage the deceased’s financial accounts, sell property, etc.

Vital Records and Legal Documents

Executors should find and retain the following:

• Birth/adoption certificate
• Indigenous status certificates/card
• Immigration/citizenship papers
• Marriage licence, divorce decree, etc.
• Pre/post-nuptial agreements
• Trust documents
• Business ownership documents (partnership agreements, incorporation papers)
• Other identifications such as SIN, passport, driver’s licence, health card, etc.

Executors may need some of these records to process the estate. They may need to cancel other documents, such as a valid passport.

Asset Inventory

A comprehensive inventory of the deceased’s assets is crucial. Typically, the executor would prepare an inventory of household goods, specifically noting all high-value items. Also, they need to compile the following essential documents for a deceased person:

• Real estate deeds, property titles, or lease agreements
• Bank and investment account statements, including retirement funds (RRSPs, RRIFs, etc.)
• Stock and bond certificates
• Vehicle ownership, registration, licencing
• Appraisals for high-value items such as jewelry, artwork, antiques, collections, electronics, etc.
• Licences and registrations for firearms and other weapons. Note: The executor must ensure weapons are securely stored during the estate settlement. For more details, review this information for executors from the RCMP.

A detailed inventory helps value the estate and accounts for all assets so they can be properly distributed.

Income Sources

Identify income sources for the deceased person. This might include pensions from previous employers, trust funds, or royalties from books, movies, music, etc. At a minimum, keep a copy of the most recent statement. You may need to keep up to six years’ worth of statements to adhere to Canada Revenue Agency (CRA) regulations.

Debts and Liabilities

One of the executor’s tasks is identifying and settling the deceased’s outstanding debts. They need this information:

• Credit card statements
• Loan agreements, including vehicle and personal loans
• Mortgage statements or rent/lease agreement
• Utility bills and other regular expenses
• Other creditors

Income Tax Records

The executor must ensure that the deceased’s income taxes are paid for the year they die and all previous years if they were not up-to-date in annual filings. Executors will need these essential documents for a deceased person:

• Recent tax returns
• Documentation of any tax debts
• Records of any tax payments made after the death

If the deceased person owned a business, consult a tax accountant to ensure that the person and the company pay the appropriate taxes.

Insurance Policies and Beneficiary Designations

Life insurance policies are vital so heirs can file claims and receive benefits. Records of beneficiary designations are crucial for accounts like retirement plans and life insurance policies. These documents ensure the executor can distribute these assets according to the deceased’s wishes.

Executors should also locate other insurance policies (such as property and vehicle insurance) so they can cancel them when the time comes.

Correspondence

Executors need to keep all significant correspondence related to the estate, including letters, emails, text messages, and direct/instant messages from:

• Beneficiaries
• Attorneys, accountants, and financial advisors
• Creditors or government agencies
• Other professionals involved with the estate (e.g., appraisers, real estate agents, professional organizers, moving companies, cleaners, etc.)

Other Information an Executor Needs

Along with the essential documents, the executor should have access to the deceased’s address book to notify contacts of the death. Additionally, they should have a list of account passwords and usernames to access and close accounts easily.

Organizing and Storing Estate Records

Being an executor involves meticulous record-keeping and attention to detail. Organizing these documents in an accessible manner is crucial in managing the estate and protecting the executor from potential legal disputes and liabilities.

Remember, even if the person is dead, identity thieves can strike. In fact, many criminals read obituaries and target estate clear-outs in hopes that executors toss paperwork in the recycle bin or garbage. That’s why it is crucial to save essential documents for a deceased person and shred all the paperwork you do not need.

Ideally, the executor should store all estate records separate from their own records. A spare drawer in a locked filing cabinet would work well. Alternatively, they could purchase a lockable file storage box.

Generally, executors must keep all financial-related information (not just the income tax returns) for at least six years after filing the final income tax return. However, some documents, such as birth and death certificates, must be kept indefinitely. Always consult a lawyer and financial advisor about document retention for your specific situation.

Organizing and storing essential documents for a deceased person is crucial for the legal administration of an estate. Ideally, it would be best to work with your executor to ensure a smooth transition by preparing and organizing these documents in advance. Additionally, seeking advice from lawyers and financial advisors should help avoid costly mistakes and ensure efficient estate settlement. As an executor, you should maintain meticulous records and securely store all necessary documents to protect against identity theft and comply with legal requirements.

If you need help with downsizing and estate clearing, contact the Out of Chaos team.