Frequently Asked Questions

We've compiled a list of some of the real questions we've received by email and over the web. The answers are general information only, not legal advice.

Q. Does the executor have to pay the debts of the estate?

A. As trustee of the assets of the estate, the executor typically pays the debts of the estate from the liquidation of the assets. If the executor pays legitimate estate debts personally, they are entitled to reimbursement from the estate. If there is no will, there is no automatic right to be reimbursed.

Q. How long does the executor have to distribute the estate after the final taxes are paid?

A. There is no statutory time limit, however most executors find that once the estate has been finalized and the Clearance Certificate has been received from Canada Revenue, that there is no longer a reason to pay out unless there are trusts in the will that either obligate or entitle them to hold funds.

Q. What if the beneficiaries are paid and there's no money left to pay the taxes?

A. The executor or administrator may be personally liable for the taxes and may find themselves in the awkwark position of attempting to get some of the money back from the beneficiaries.

Q. Can children of a deceased person be held liable for the funeral expenses?

A. The legal obligation to pay the expenses will fall to the person who signed the contract with the funeral provider, however funeral expenses are typically reimbursed from the assets of the estate.

Q. When is a release from beneficiaries needed?

A. It is always prudent to have beneficiaries provide a release of the executor or administrator since the executor or administrator can be personally liable of there are allegations of mishandling the affairs of the estate. Where some beneficiaries cannot be found, an executor or administrator may consider having the accounts of the estate approved by a registrar of the court.

Q. Can you read a will to beneficiaries before legal notification by a lawyer?

A. The executor is entitled to share the contents of the will if they choose, however if the will disinherits anyone, the executor may wish to seek legal advice before doing anything with the will.

Q. What if an executor fails to notify a beneficiary?

A. Notification of beneficiaries is not an option - it is a requirement. If they cannot be located, the executor must obtain a court order to dispense with providing notice to them. What is most troubling for the executor is that they may have sworn a false affidavit - something that is not looked upon favourably by the court.

Q. Should only the executor have the death certifcates?

A. Death certificates are usually provided to the executor by the funeral home but there is nothing inherantly private in them and they usually have to be provided to banks, insurance companies and the like.

Q. What if the executor is slow to distribute the estate?

A. Executors have a tremendous amount of work to do and beneficiaries often complain about slowness. In fairness, the executor is personally liable for their actions so if they proceed cautiously, it should not be seen as slowness. However, if the estate has been finalized and a Clearance Certificate has been issued by Canada Revenue, you may need to seek legal assistance because a court application may be necessary.

Q. What does "executor's year" mean?

A. The Executor's Year is a common law rule that allows the executor a one year period starting at the date of death to administer the estate and transfer the assets without any interest accruing to the beneficiaries.

Q. What if the executor is involved in theft from the estate?

A. Seek legal advice immediately. The executor's role is that of a trustee and any theft would be a breach of trust. Breach of trust is a serious allegation and you must be prepared to produce some solid evidence of theft, not just suspicion.

Q. Who pays for the funeral in an insolvent estate?

A. Funerals are for the living. Those who feel they want a funeral should be prepared to pay for it. Don't expect to be able to force others such as a spouse to pay for it.

Q. What are Letters Probate?

A. Letters Probate aren't a letter in the conventional sense. It is a court issued document that establishes the executor's authority to deal with the assets of the estate.

All legal services provided through Bassett Quring Law Corporation.