Ask MoneySense
I am a 60-year-old single woman with no children. I am an only child and have no siblings, nieces or nephews. I have a lot of friends and most of them are my age. I am planning to update my will soon and I am considering naming a trust company (if that is the correct name) as the executor of my estate. I am trying to figure out how to select a reputable company, what to look for and how it works.
—Michèle
When people prepare a power of attorney (POA) or draft a will, they typically select family members as their attorneys or executors. A spouse is often the first choice, followed by adult children or siblings. In situations like yours, Michèle—where you have no immediate family—it’s important to weigh alternative options carefully.
Roles and responsibilities to consider
A power of attorney, personal directive or similar estate planning document names someone to make financial and health-care decisions on your behalf if you become unable to do so. This role usually takes effect while you are still alive but lack the capacity to make decisions.
A person appointed under a POA can generally handle all your affairs other than making or changing a will (testamentary decisions).
In contrast, an executor is the person designated in your will to carry out your final wishes after you die. The executor’s responsibilities include settling your estate, paying final taxes and debts, and distributing assets to beneficiaries. The authority granted by a POA ends at death; the executor steps in once the will takes effect.
What is an executor?
An executor is named in a will and is responsible for administering the estate after death, ensuring assets are distributed according to the deceased’s wishes and that legal and financial obligations are met. Tasks can range from filing a final tax return and closing bank accounts to selling property or distributing personal items such as jewellery and collectibles.
What is a trusted contact person?
Financial advisors and planners increasingly ask clients to provide a trusted contact person (TCP). This is someone an advisor can contact under limited circumstances—such as suspected financial exploitation, fraud, coercion, unauthorized transactions or concerns about the client’s mental capacity related to financial decisions. A TCP is not the same as an attorney under a POA; the TCP’s role is to be a point of contact for professionals when specific concerns arise.
How to choose a trusted contact person
If you lack family members who are suitable to act as attorneys or executors, naming a trusted friend is a common alternative. However, many people of similar age have friends who are also older, which can present practical challenges if your TCP or executor is of the same generation and may later face their own health or capacity issues.
An option worth considering is a trust company: a corporate trustee that manages assets and acts as a fiduciary. A trust company has a legal duty to act in your best interests and can provide continuity and professional oversight that an individual might not be able to offer. Unlike an individual, a trust company does not age or die, which can simplify long-term administration, though companies can merge or change services over time.
Why name a trust company?
All major banks and many independent financial institutions offer trust services. While their names and structures vary, the essential point is that professional trustees bring experience handling estate administration, tax filings, asset management and compliance matters. Hiring a trust company typically involves fees and may require signing a fee agreement and sharing your estate documents for review.
Fees for a professional trustee are generally higher than compensating a family member or friend who volunteers for the role. Many family members act without payment, but when you do not have close relatives, paying for professional expertise can provide peace of mind and reduce the burden on friends. A trust company can offer impartiality and continuity that can be especially valuable when beneficiaries are numerous or when assets are complex.
If you already have a banking relationship, starting with your bank’s trust services is an option. It is also wise to consult an estate lawyer who knows the firms active in your province or territory; they can offer practical advice based on experience with different trust companies and help you compare fees, services and reputations.
Have a backup plan
Estate planning becomes more complicated when you do not have immediate family to serve as attorneys or executors. A practical approach is to name a friend as the primary contact or executor and designate a trust company as a backup. This arrangement allows a willing and capable friend to act while ensuring a professional trustee is ready to step in if the friend is unable or unwilling to serve when the time comes.
Having both a human choice and a professional backup combines the personal touch of a trusted friend with the reliability and continuity of a corporate trustee. Before finalizing your documents, review them with an estate lawyer to ensure your wishes are clearly expressed and that any trustee or backup named is prepared and legally able to act.
More about estate planning:
- Do I need a tax lawyer to prepare my estate?
- How executors get paid in Canada
- Three reasons to have a will and estate plan
- “Our parents just passed—What do we do about their estate?”