FRED: Welcome to the Scotiabank Podcast. I’m Fred Ketchen, Director of Stock Trading for ScotiaMcLeod. These regular podcasts call on some of Scotiabank’s most knowledgeable experts to help you make the most of what you have. Here we’ll discuss strategies designed to put you in the financial driver’s seat.

In this episode I’m joined by Jess Mann, Managing Director and Head of Estate and Trust Services at Scotia Private Client Group. Jess is going to talk to us about why now more than ever, wealth management clients are looking for peace of mind to ensure their investments, their retirement and will and estate plans are all aligned. Sometimes some people are a little uncomfortable talking about this subject, Jess. So how do you introduce this subject of will and estate planning to your clients?

JESS: The importance of will and estate planning often comes up in our first meeting with a client when we discuss their overall goals, determine whether they have an up-to-date will, and if they have appointed an appropriate executor. We found that certain life events such as marriage or divorce, birth of a grandchild, retirement or sale of a business, prompt clients to focus on their estate planning needs. We want to insure that what clients wish to preserve or protect for their family and future generations are reflected in their will and this should align with their entire financial situation. At other times our services are introduced when a client passes away and their executor, who’s generally a close friend or family member, is looking for assistance.

FRED: Well we know how important it is for us to have a will, but I’m not sure everyone appreciates what role the executor plays. How would you briefly characterize the role of the executor?

JESS: An executor is an individual or an institution named in will, responsible for administering the estate according to the wishes of the deceased. An executor needs to fulfill this role in a timely manner while dealing with very complicated legal and tax implications. The role is often best performed by or with the assistance of a trust professional.

FRED: Now, I know this is a serious and important job a very, very significant responsibility, so can you give me an idea of some of the duties that are involved in administering an estate.

JESS: Sure Fred. The duties can be extensive and really do vary from estate to estate. That being said, a number of standard duties do usually apply. These could include identifying, securing and preparing an inventory of the assets of the estate, obtaining probate where required, identifying and settling the outstanding debts and liabilities. Managing the assets until they are distributed or sold, preparing and filing all the related tax returns and preparing full accounting of the estate activities for the approval of the beneficiaries.

FRED: Sounds very daunting, doesn’t it. Do you find that there are particular areas of concern for executors especially in these uncertain economic times?

JESS: Most definitely. Many people see being named an executor as an honor, but what they don’t realize is it can also be very demanding and time consuming especially with today’s increasing complex estate and tax legislation. Major concerns for those named as an executor tend to fall in a few different categories; these could include the lack of expertise, the time and distance factors, the potential for personal liability, and really the potential for family issues, and family issues may include a number of things such as; conflict among siblings, special planning for disabled beneficiaries or the added complexities in this day and age of blended families. Anyone who has been an executor can tell you it is time consuming and very complex.

FRED: Well, let me ask you this then Jess, what steps can our listeners take to address these concerns?

JESS: If one or a combination of these issues exist, it often makes the most sense to seek professional advice from trust professionals who really understand the complexities of estate administration. Navigating this unfamiliar territory of administering someone’s will, at least for most of us, can be very stressful. Fortunately, complimentary will and estate planning services are often available to wealth management clients who appoint a trust company as executor in their will. Also some even offer services that can help executors ensure the estate is properly administered. At Scotia Private Client Group, we call this service “Estate Assist”.

FRED: Well thank you, Jess. Now tell me one other thing, if the executor chooses to hire you to help them at this critical time, how are their fees covered?

JESS: That’s an excellent question, Fred, and its one that we are frequently asked. Fees are paid by the estate and actually are partially tax deductible. Provincial courts or legislation generally govern estate administration fees and we follow the same guidelines applicable to all executors.

FRED: Well, thank you Jess. This has been very helpful. I find it very, very interesting and I think it’s probably something that more of us ought to spend time learning about. Well, we hope that this discussion has helped you, our listeners, whether you’re considering whom to appoint as your executor or whether you could use assistance in discharging your myriad responsibilities as an executor. As we’ve heard throughout this series, 2009 has its challenges relating to the markets, relating to the economy and seeking professional assistance on the estate planning side may be the best investment that you could make.

Thank you for joining us, I’m Fred Ketchen. For more information on Scotia Private Client Group, please visit your local Scotiabank branch, we’ll help you make the most of what you have.