A national association of financial advisors is now offering insurance to help protect executors from the liability exposure that comes with administrating an estate.
Executors can be held personally liable for the decisions they make in the administration of an estate, according to Advocis, the Financial Advisors Association of Canada. Executors can have to deal with as many as 17 professionals in the course of administering an estate, which can lead to confusion, Advocis said.
Typically, an estate executor is a family member or close friend. that means many estates are managed by people with little or no experience. And while many executors hire professionals to sell houses or manage estate finances, that doesn’t remove their liability. That’s why Advocis is now offering ERAssure executor liability insurance through Advocis Broker Services.
While an executor may act in good faith, errors or disagreements can still mean that the expectations of beneficiaries and creditors aren’t met – and that could lead to the executor and the estate being sued, Advocis said.
“We believe that executor liability insurance is an important product for financial advisors to discuss with their clients,” said Greg Pollock, president and CEO of Advocis. “Financial advisors build long-term relationships and can help educate clients on the risks associated with being an executor.”
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