Video: The Wealthy Barber: Settling estates and being an executor is becoming more complicated

Leanne Kaufman:

Well, this interview isn’t the format we discussed.

David Chilton:

No, we had a clever idea where I was going to pretend to be my dad complete with a cardigan sweater, a walker and, obviously, some butter tarts.

I was going to discuss my estate plan—what I’ve done well and what I could have done better and, of course, how wonderful my son is.

Leanne Kaufman:

I liked that idea. Why did you drop it?

David Chilton:

Well, this sounds dramatic but I wanted to speak from the heart, with no humour for once, about a big concern I have, a growing concern. One that came to front of mind again this week through a few calls I received.

Leanne Kaufman:

Go on.

David Chilton:

I’ve talked a lot about reasons I don’t want to be an executor. Reasons most Canadians shouldn’t want to be an executor.

It’s time consuming. It’s stressful. It often leads to family conflict. But there’s another reason I don’t think I’ve communicated aggressively enough: it’s hard. And getting harder.

Leanne Kaufman:

And why is it getting more challenging?

David Chilton:

We have so many more wealthy people now and often they have far more complicated estates. So many people die with foreign real estate, with significant foreign income, with holdcos, with shares in private companies, with blended families, with tough-to-value-and-sell alternative assets, etcetera, etcetera.

Bluntly, being an executor for many of today’s larger estates is beyond many people’s skill set and knowledge level.

They need help. I’m not saying that to be rude, it’s a fact. But too often people don’t seek that help.

Leanne Kaufman:

I may be biased, but I couldn’t agree more. Any specific examples you can share?

David Chilton:

Many unfortunately. But I’ll share just two quickly. In the first, the executor filed a foreign tax return but missed reporting significant income from a limited partnership, and now there’s an audit. Can you imagine the hassle? And trying to get money back from some beneficiaries? Oh my gosh.

In the second the executor sold the deceased’s shares in a private company to another shareholder but now not only are beneficiaries complaining the price was too low, but also other shareholders are rightfully arguing the shareholders’ agreement wasn’t properly adhered to and they’re threatening to sue.

Leanne Kaufman:

Yikes.

David Chilton:

Exactly. I can’t say this strongly enough: if you are the executor of a significant estate—get help!

You owe it to yourself, but also you also owe it to the deceased. Get this right! Enlist the services of an agent for executor, a Royal Trust, to bring their knowledge, experience and resources to the table.

Let them act as your helper.

You don’t have to do this alone. And in many cases, you shouldn’t.

Leanne Kaufman:

I was really looking forward to your imitation of your father but, obviously, I love that message.

David Chilton:

Hey, butter tart?

Leanne Kaufman:

Thank you.