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Wealth Professional | 10 Feb 2014, 10:21 AM Agree 0
Taking on the role as executor can rake in some extra cash. But should an advisor get mixed up in divvying the inheritance? One Toronto advisor doesn't think so ...
  • Brian D | 10 Feb 2014, 12:23 PM Agree 0
    IIROC Dealer Member Rule 43 (See IIROC Notice 13-0162) will restrict most instances where an advisor would act as an executor for a client.
  • Bob Thompson | 10 Feb 2014, 12:26 PM Agree 0
    Most firms prohibit their advisors from taking on the role of executor except for family and due to potential conflicts of interest that is the best course for any advisor. There are professional executors available
  • Myron Neufeld | 10 Feb 2014, 04:45 PM Agree 0
    Our experience suggests advisors are taking on the role...our advice: 1) ensure an 'estate specific' investment plan is completed; 2) limit exposure to conflict of interest by having another party manage assets; 3) know and understand that as the personal representative of the estate your liabilities extend well beyond investments so protect yourself accordingly.
  • Ken MacCoy, CHS | 11 Feb 2014, 04:43 PM Agree 0
    IIROC & the MFDA prohibit advisors from acting as trustees &/or executors to client estates due to the possibility &/or perception of a conflict of interest. There are many insurance companies who specifically prohibit this as per their Code of Market Conduct for Advisors. Yet, often the advisor is the best candidate in certain situations. So, what do you do? (1) Follow Myron Neufeld's advice above, and (2) immediately remove yourself as the servicing advisor PRIOR TO accepting the appointment as trustee or executor. If you're no longer the advisor, there can't be a conflict of interest.
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