Managing Estate holdbacks – How much should executors hold back?
One of my number one questions from executor clients is “how much should I holdback from distribution of the Estate’s residue under the Will, until CRA tax clearance is obtained?”
Check out the Advisor.ca blog and James Dolan’s post on key questions Executors should ask themselves when making this decision.
“The executor is on the hook for the taxes, lawyers’ fees, accounting fees, etc.—basically, it becomes their bills. So the executor “may as well exercise caution from the beginning.”
Exercise caution – What is your comfort level?
1.Are there international assets?
2.What about business assets?
3.Is there litigation pending?
4.Are there any outstanding tax returns?
5.Is there family conflict?