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{{Dial-A-Law TOC|expanded = wills}}
{{Dial-A-Law TOC|expanded = wills}}
This script discusses your duties as an executor under a will and what you have to do to probate an estate.
This script discusses the duties of an executor of a will and how to probate an estate.


==What does it mean to probate an estate?==
==What is an executor, and what do they do?==
Probate is the process of getting the court to rule that a will is legally valid. With some exceptions, the estate consists of any land, house, money, investments, personal items and other assets that the deceased owned. The person who died and made the will is called the “testator”.
An executor is a person or company named in a will. The executor gathers up the estate assets, pays the dead person’s (deceased’s) debts, and divides what remains of the deceased’s estate among the beneficiaries. The beneficiaries are the people named in the will to inherit the estate.


==What is an executor, and what does the executor do?==
==How do you confirm that you were named as executor?==
The executor is named in a will. In general, the executor gathers up the estate assets, pays the deceased’s debts, and divides what remains of the deceased’s estate among the beneficiaries. The beneficiaries, in turn, are the people named in the will to inherit the testator’s estate.
You need to get the original will to check this. The person who died and made the will is called the '''''will-maker'''''. If the will is not at the will-maker’s home, it may be in a safety deposit box or at the office of the lawyer who drafted the will. You should do a search of the [http://www2.gov.bc.ca/gov/content/life-events/death-and-bereavement/wills-registry Wills Registry] of BC’s Vital Statistics Agency to ensure you are dealing with the last will.  


==How do you confirm that you were named as the executor?==
The will-maker or their lawyer may have registered a wills notice with Vital Statistics. This notice tells where the will-maker planned to keep the original will. If a wills notice was registered, you can locate and obtain the original will and confirm that you were named as the executor.
You need to get the original version of the will to check this. If it's not at the deceased testator’s home, the will may be in a safety deposit box, at the office of the lawyer who drafted the will, or it may be found by a search with the Vital Statistics Agency.  


To look in a safe deposit box, phone the bank and make an appointment. Take the key, a death certificate and your own identification. If the will is there and names you as executor, the bank will let you take the will. The bank will not let you take the contents of the safe deposit box until you give them a copy of the Grant of Probate. You and a bank employee will then list the contents of the safety deposit box. You need to keep a copy of that list.
A wills notice may not have been filed and the document will say that. Or the will might have been moved from the location listed in the wills notice. It does not matter if the will has been moved, but you do need to give the wills notice to the Probate Registry. For the Vital Statistics Agency office near you, call 1.888.876.1633 or check with [http://www.vs.gov.bc.ca/wills Vital Statistics].  


The other thing you can do is search for a wills notice at the Vital Statistics Agency. The testator or the testator’s lawyer may have registered a wills notice with Vital Statistics. This notice tells where the testator planned to keep the original will. If a wills notice was registered, you’ll be able to locate and obtain the original version of the will and confirm that you were named as the executor. A wills notice may not have been filed and the document will say that. Or the will might have been moved from the location listed in the wills notice. It does not matter if the will has been moved but you do need to submit the wills notice to the Probate Registry. For the Vital Statistics Agency office closest to you, call 1.888.876.1633 or check the Vital Statistics website at [http://www.vs.gov.bc.ca www.vs.gov.bc.ca].
To look in a safety deposit box, phone the bank and make an appointment. Take the key, a death certificate, and your own identification. If the will is there and names you as executor, the bank will let you take it. The bank will not let you take the contents of the safe deposit box until you give them a copy of the Grant of Probate (explained below). You and a bank employee will then list the contents of the safety deposit box. You need to keep a copy of that list.


==Decide if you want to be the executor==
==Decide if you want to be the executor==
If you haven’t yet dealt with any of the estate assets (also called “intermingled”), you cannot be forced to act as an executor. “Dealing with an asset” may mean paying debts or changing the insurance on a house. Acting as an executor can be challenging, and you should only take on this responsibility knowing that the task may be time-consuming and stressful. Once you begin the process of dealing with the estate assets, you’re legally bound to complete the job, and you can only be relieved of your responsibility by a court order. If the executor dies before completing his or her duties, the executor’s executor (person the executor named in his own will) becomes the new executor, in most cases.
If you haven’t yet dealt with any of the estate assets (or “intermingled” them), you do not have to be executor. “Dealing with an asset” may mean paying debts or changing the insurance on a house. Acting as an executor can be challenging, time-consuming, and stressful. You should agree to be executor only if you can take on this responsibility. Once you begin dealing with the estate assets, you’re legally bound to finished the job, and you can be relieved of your responsibility only by a court order. If the executor dies before completing their duties (and there is no alternate executor named in the will who is willing to be executor) then the executor’s executor (named in the executor’s will) becomes the new executor, in most cases.


==Consider hiring a lawyer==
==Consider hiring a lawyer==
If you decide to act as the executor, consider whether to hire a lawyer to do the paperwork and advise you of your obligations. If you do, the lawyer’s fees will be paid for out of the estate’s assets. Ask the lawyer how the legal fees will be calculated, whether as a percentage of the estate or on an hourly basis. But because unexpected matters often arise in estates, it may not be possible to get an exact estimate of the fees. It’s a good idea to hire a lawyer for any estate involving the distribution of assets through a will, where a grant of probate is required. For most estates, it’s also a good idea to also hire an accountant to help with the several tax returns that need to be filed, as proper filing of returns and payment of taxes is one of the executor’s responsibilities.
If you agree to be the executor, consider hiring a lawyer to do the paperwork and advise you of your duties. If you do, the lawyer’s fees will be paid from the estate’s assets. Ask the lawyer how the legal fees will be calculated: a percentage of the estate or an hourly fee. But because unexpected matters often arise in estates, it may not be possible to get an exact estimate of fees. It’s a good idea to hire a lawyer for any estate involving the distribution of assets through a will, where a grant of probate is required. For most estates, it’s also a good idea to also hire an accountant to help with the several tax returns that need to be filed. Proper filing of returns and payment of taxes is one of the executor’s responsibilities.


==Your first decision as executor may be about funeral arrangements==
==Make funeral arrangements==
The funeral is your responsibility, although you’ll want to consider the wishes of the deceased person and their relatives. The funeral parlor will ordinarily order you copies of the death certificate. You may take the funeral bills to the bank where the deceased kept an account. If there’s enough money in the account, the bank will give you a cheque from that account to pay the expenses.
The funeral is the executor’s responsibility, although you should consider the wishes of the deceased and their relatives. The funeral parlor will ordinarily order you copies of the death certificate. You may take the funeral bills to the bank where the deceased kept an account. If there’s enough money in the account, the bank may give you a bank draft from that account to pay the expenses.


==You must also confirm that the will is the deceased’s last will==
==Confirm it is the last will==
You can sometimes confirm this by checking with the Vital Statistics Agency at the office closest to you. Most lawyers send a wills notice to Vital Statistics for every will they prepare. Vital Statistics will then send you a Certificate of Wills Search. This will let you know if there’s a record of the will and where the will is kept. You need this certificate when you apply to the court for probate. If you can't find the original will, the search results may help you locate it. However, not all wills are registered with Vital Statistics.
You can sometimes confirm this by checking with the Vital Statistics Agency at the office closest to you. Most lawyers send a wills notice to Vital Statistics for every will they prepare. Vital Statistics will then send you a ''Certificate of Wills Search''. This will let you know if there’s a record of the will and where the will is kept. You need this certificate when you apply to the court for probate (explained below). If you can't find the original will, the search results may help you find it. But not all wills are registered with Vital Statistics.


==Cancel charge cards and protect the estate==
==Cancel charge cards and protect the estate==
You should cancel all of the deceased person's charge accounts and subscriptions. Also, ensure that the estate is protected. Make sure valuables are safe and that sufficient insurance is in place. You should immediately change the locks on the apartment or house, and put any valuable things into storage. As for insurance, most insurance policies are cancelled automatically if a house is vacant for more than 30 days, so ask the insurance agent about a “vacancy permit”.
Cancel all the deceased’s charge accounts and subscriptions. Also, ensure that the estate is protected. Make sure valuables are safe and that sufficient insurance is in place. Immediately change the locks on the apartment or house, and put anything valuable into storage. Most insurance policies cancel automatically if a house is vacant for more than 30 days, so ask the insurance agent about a “vacancy permit”.


==All potential beneficiaries must be notified==
==What does it mean to probate an estate?==
The Supreme Court Civil Rules and the new ''Wills, Estates and Succession Act'' (WESA) require that all beneficiaries (as well as certain family members who would be heirs if there was no will, or who are eligible to apply to the court to change the will) must be given written notice of the executor’s application for an estate grant, including probate, plus a copy of the will. This is generally done by the estate’s lawyer.
Probate is the process of getting a court to rule that a will is legally valid. An estate consists of any land, house, money, investments, personal items, and other assets that the dead person (the deceased) owned (with some exceptions).  


==The next step is to prepare and submit the necessary probate documents==
==Notify all potential beneficiaries==
The probate documents are submitted to court to get probate. Usually, you must get probate of the will to handle the deceased’s estate. You’ll also have to pay the probate fees as assessed by the court registry. The deceased’s bank will usually allow you to take these funds out of the deceased’s account.
The Supreme Court Civil Rules and the new ''[http://www.bclaws.ca/civix/document/id/complete/statreg/09013_01 Wills, Estates and Succession Act]'' (WESA) require that all beneficiaries (and certain family members who would be heirs if there was no will, or who are eligible to apply to court to change the will) must be given written notice of the executor’s application for an estate grant, including probate, plus a copy of the will. The estate’s lawyer generally does this.


==Be aware that you don't always have to apply for probate==
==Prepare and submit the necessary probate documents==
It depends on the type of assets in the estate. Certain assets can be passed down without requiring probate. Land owned in joint tenancy with another person doesn’t require probate. If the deceased person owned land or a house in joint tenancy with another person, you only have to file an application in the Land Titles Office along with the death certificate. This will register the land in the name of the surviving joint tenant.  
The probate documents are submitted to court to get probate. Usually, you must get probate of the will to handle the deceased’s estate. You’ll also have to pay the probate fees calculated by the court registry. The deceased’s bank will usually allow you to take these funds from the deceased’s account.
 
==Some assets don’t require probate==
It depends on the type of assets in the estate. Certain assets can be passed down without probate. Land owned in joint tenancy with another person doesn’t require probate. If the deceased owned land or a house in joint tenancy with another person, you only have to file an application in the Land Titles Office along with the death certificate. This will register the land in the name of the surviving joint tenant.  


Also, probate isn’t required for joint bank accounts or vehicles owned jointly. Again, the death certificate is usually sufficient to transfer these to the surviving joint owner.
Also, probate isn’t required for joint bank accounts or vehicles owned jointly. Again, the death certificate is usually sufficient to transfer these to the surviving joint owner.


In addition, RRSPs and insurance policies, which typically name a beneficiary to receive the proceeds in case of the owner’s death, aren’t considered part of the estate, and therefore don’t require probate. You should give the death certificate to any insurance companies and RRSP administrators that the deceased person had plans with. They’ll want the death certificate before paying money to a beneficiary.  
In addition, RRSPs and insurance policies, which typically name a beneficiary to receive the proceeds when the owner dies, aren’t considered part of the estate, and therefore don’t require probate. You should give the death certificate to any insurance companies and RRSP administrators that the deceased had plans with. They’ll want the death certificate before paying money to a beneficiary.  


==What about stocks and bonds?==
==Stocks and bonds==
If the estate includes securities, such as stocks and bonds, you may have to apply for probate in order to transfer them. You should check with the financial institution or transfer agent involved for each security in the estate because they’ll have different requirements.
If the estate includes securities, such as stocks and bonds, you may have to apply for probate to transfer them. You should check with the financial institution or transfer agent for each security in the estate because they’ll have different requirements.


==Also deal with any pensions the deceased had==
==Deal with any pensions==
If the deceased paid into the Canada Pension Plan, immediately apply to your local CPP office to inform them of the death and obtain any death, survivor or orphan benefits. Most funeral directors can provide you with information and forms regarding CPP death benefits. You should also check with the deceased person's employer about any benefits available from his or her place of work. If the deceased was receiving an old age security pension or other pensions, you also need to inform those pension offices about the death. Note that any CPP or old age security cheques for the month after the month in which the person died must be returned uncashed.
If the deceased paid into the Canada Pension Plan (CPP), immediately apply to the local CPP office to inform them of the death and obtain any death, survivor, or orphan benefits. Most funeral directors can give you information and forms on CPP death benefits. You should also check with the deceased’s employer and union about any benefits from their work. If the deceased was receiving an old age security pension or other pensions, you also need to inform those pension offices about the death. Any CPP or old age security cheques for the month after the month in which the person died must be returned uncashed.


==Certain income tax returns must be filed, and income tax may have to be paid==  
==File certain income tax returns and pay income tax==
You need to file tax returns for any years for which the deceased didn’t file a return. If the estate made any income after the date of death (such as rental income or interest on bank accounts), then tax returns will have to be filed for the estate for each year after death, until the estate is wound up or paid out. The estate must pay taxes and obtain a Clearance Certificate from Revenue Canada before the estate can be distributed to the beneficiaries. This certificate confirms that all income taxes or fees of the estate are paid. This is an important step because the tax department can potentially impose taxes that you don’t know about.
You must file tax returns for any years the deceased didn’t file a return for. If the estate made any income after the date of death (such as rental income or interest on bank accounts), then tax returns will have to be filed for the estate for each year after death, until the estate is wound up or paid out.  


==Now you can pay the estate’s debts==
==Get a tax clearance certificate from CRA==
The estate must pay taxes and obtain a tax clearance certificate from Canada Revenue Agency (CRA) before it can be distributed to beneficiaries. This certificate confirms that all income taxes and fees of the estate are paid. It’s important. Without it, CRA can impose taxes that you don’t know about.
 
==Pay the estate’s debts==
Depending on the circumstances, you may want to advertise for possible creditors so you can make sure all legitimate debts are paid. This is to protect yourself against creditor claims that arise after you distribute the estate. As the executor, you could be personally liable if you don’t pay the deceased’s debts, including any taxes owed, before you distribute the estate. You should talk to a lawyer about this.
Depending on the circumstances, you may want to advertise for possible creditors so you can make sure all legitimate debts are paid. This is to protect yourself against creditor claims that arise after you distribute the estate. As the executor, you could be personally liable if you don’t pay the deceased’s debts, including any taxes owed, before you distribute the estate. You should talk to a lawyer about this.


==Be aware of the ''Wills Variation Act''==
==Wait before distributing the estate because of the wills variation provisions of WESA==
The ''Wills Variation Act'' allows any child or spouse of the deceased to apply to the court to vary or change the terms of the will. There is a six-month deadline, starting from the granting of probate, for applications to be made requesting variation of the will. You should therefore wait for at least six months before distributing the assets of the estate, or obtain releases from each potential claimant. Remember that you are responsible if the assets are distributed to the wrong people, meaning that you could be sued in such an event.
The wills variation provisions of the ''[http://www.bclaws.ca/civix/document/id/consol23/consol23/00_96490_01 Wills Variation Act]'' allows any child or spouse of the deceased to apply to the court to vary or change the will. There is a 180-day deadline, starting from the granting of probate, for applications to vary the will, plus 30 days to serve the executor with the claim (give the claim to them). So you should wait at least 210 days from the grant of probate before distributing the assets of the estate, or obtain consents and releases from each potential claimant. You are responsible if the assets go to the wrong people: you could be sued.
 
==Get tax clearance==
It’s wise to obtain a tax clearance certificate from the Canada Revenue Agency. This certificate confirms that all income taxes or fees of the estate are paid. This is an important step because the tax department can potentially impose taxes that you don’t know about.


==Finally, you’re ready to distribute the estate to the beneficiaries==
==Finally, distribute the estate to the beneficiaries==
But before distributing the assets as directed in the will, you should submit a full accounting of the estate’s financial activities and obtain a release from each beneficiary. Your accounting will usually include a claim for reimbursement of expenses that you’ve paid yourself while serving as executor. You’ll have to decide if you also want to claim a fee for acting as executor. This fee can be up to 5% of the estate and is taxable income. If you want to claim a fee, the amount you claim should be included in the accounting that you send to the beneficiaries.
But before distributing the assets under the will, submit a full accounting of the estate’s financial activities and obtain a release from each beneficiary. Your accounting will usually include a claim for reimbursement of expenses that you paid while serving as executor. You’ll have to decide if you also want to claim a fee for acting as executor. This fee can be up to 5% of the estate and is taxable income. If you want to claim a fee, include it in the accounting that you send to the beneficiaries.


Unless there is only one beneficiary, such as a spouse, or your children, you may not want to distribute any portion of the estate to beneficiaries until the clearance certificate is obtained. If the whole estate goes to your spouse, and the bulk of the estate is transferred to the spouse before the clearance certificate is received, the spouse will be responsible for any outstanding debts and taxes. The executor usually has a year (called the “executor’s year”) to complete the process but it can take much longer than that, especially if there are trusts involved or you cannot locate a beneficiary.  
Unless there is only one beneficiary, such as a spouse or children, you may not want to distribute any part of the estate to beneficiaries until you get the CRA clearance certificate. If the whole estate goes to a spouse, and you transfer most of the estate to them before you have the clearance certificate, the spouse will be responsible for any outstanding debts and taxes. The executor usually has a year (called the “executor’s year”) to complete the process, but it can take much longer, especially if the assets or liabilities are complicated, trusts are involved, or you cannot find a beneficiary.  


==Where can you find more information?==
==More information==
*See the booklet “Being an Executor” produced by the People’s Law School, available online through Clicklaw at [http://www.clicklaw.bc.ca/resource/1022 www.clicklaw.bc.ca/resource/1022].
*[http://www.clicklaw.bc.ca/resource/1022 Being an Executor] from the People’s Law School
*Also see the BC Ministry of Justice’s website on wills and estates at [http://www.ag.gov.bc.ca/courts/other/wills_estates.htm www.ag.gov.bc.ca/courts/other/wills_estates.htm].
*[http://www.nidus.ca/ Nidus Personal Planning Resource Centre & Registry] has detailed information on all aspects of personal planning including fact sheets, forms, and videos.
*BC government websites on [http://www2.gov.bc.ca/gov/content/family-social-supports/seniors/financial-legal-matters/wills-and-estate-planning wills and estate planning] and [wills & estates]
•Scripts [[Making a Will and Estate Planning (Script 176)|176]] and [[The Disappointed Beneficiary (Script 179)|179]]




[updated March 2015]
[updated April 2017]


'''The above was last reviewed for accuracy by Susan Hart, Jack Montpellier and Anna Kurt.'''
'''The above was last reviewed for accuracy by Hugh McLellan and edited by John Blois.'''
----
----



Revision as of 23:01, 26 April 2017

This script discusses the duties of an executor of a will and how to probate an estate.

What is an executor, and what do they do?

An executor is a person or company named in a will. The executor gathers up the estate assets, pays the dead person’s (deceased’s) debts, and divides what remains of the deceased’s estate among the beneficiaries. The beneficiaries are the people named in the will to inherit the estate.

How do you confirm that you were named as executor?

You need to get the original will to check this. The person who died and made the will is called the will-maker. If the will is not at the will-maker’s home, it may be in a safety deposit box or at the office of the lawyer who drafted the will. You should do a search of the Wills Registry of BC’s Vital Statistics Agency to ensure you are dealing with the last will.

The will-maker or their lawyer may have registered a wills notice with Vital Statistics. This notice tells where the will-maker planned to keep the original will. If a wills notice was registered, you can locate and obtain the original will and confirm that you were named as the executor.

A wills notice may not have been filed and the document will say that. Or the will might have been moved from the location listed in the wills notice. It does not matter if the will has been moved, but you do need to give the wills notice to the Probate Registry. For the Vital Statistics Agency office near you, call 1.888.876.1633 or check with Vital Statistics.

To look in a safety deposit box, phone the bank and make an appointment. Take the key, a death certificate, and your own identification. If the will is there and names you as executor, the bank will let you take it. The bank will not let you take the contents of the safe deposit box until you give them a copy of the Grant of Probate (explained below). You and a bank employee will then list the contents of the safety deposit box. You need to keep a copy of that list.

Decide if you want to be the executor

If you haven’t yet dealt with any of the estate assets (or “intermingled” them), you do not have to be executor. “Dealing with an asset” may mean paying debts or changing the insurance on a house. Acting as an executor can be challenging, time-consuming, and stressful. You should agree to be executor only if you can take on this responsibility. Once you begin dealing with the estate assets, you’re legally bound to finished the job, and you can be relieved of your responsibility only by a court order. If the executor dies before completing their duties (and there is no alternate executor named in the will who is willing to be executor) then the executor’s executor (named in the executor’s will) becomes the new executor, in most cases.

Consider hiring a lawyer

If you agree to be the executor, consider hiring a lawyer to do the paperwork and advise you of your duties. If you do, the lawyer’s fees will be paid from the estate’s assets. Ask the lawyer how the legal fees will be calculated: a percentage of the estate or an hourly fee. But because unexpected matters often arise in estates, it may not be possible to get an exact estimate of fees. It’s a good idea to hire a lawyer for any estate involving the distribution of assets through a will, where a grant of probate is required. For most estates, it’s also a good idea to also hire an accountant to help with the several tax returns that need to be filed. Proper filing of returns and payment of taxes is one of the executor’s responsibilities.

Make funeral arrangements

The funeral is the executor’s responsibility, although you should consider the wishes of the deceased and their relatives. The funeral parlor will ordinarily order you copies of the death certificate. You may take the funeral bills to the bank where the deceased kept an account. If there’s enough money in the account, the bank may give you a bank draft from that account to pay the expenses.

Confirm it is the last will

You can sometimes confirm this by checking with the Vital Statistics Agency at the office closest to you. Most lawyers send a wills notice to Vital Statistics for every will they prepare. Vital Statistics will then send you a Certificate of Wills Search. This will let you know if there’s a record of the will and where the will is kept. You need this certificate when you apply to the court for probate (explained below). If you can't find the original will, the search results may help you find it. But not all wills are registered with Vital Statistics.

Cancel charge cards and protect the estate

Cancel all the deceased’s charge accounts and subscriptions. Also, ensure that the estate is protected. Make sure valuables are safe and that sufficient insurance is in place. Immediately change the locks on the apartment or house, and put anything valuable into storage. Most insurance policies cancel automatically if a house is vacant for more than 30 days, so ask the insurance agent about a “vacancy permit”.

What does it mean to probate an estate?

Probate is the process of getting a court to rule that a will is legally valid. An estate consists of any land, house, money, investments, personal items, and other assets that the dead person (the deceased) owned (with some exceptions).

Notify all potential beneficiaries

The Supreme Court Civil Rules and the new Wills, Estates and Succession Act (WESA) require that all beneficiaries (and certain family members who would be heirs if there was no will, or who are eligible to apply to court to change the will) must be given written notice of the executor’s application for an estate grant, including probate, plus a copy of the will. The estate’s lawyer generally does this.

Prepare and submit the necessary probate documents

The probate documents are submitted to court to get probate. Usually, you must get probate of the will to handle the deceased’s estate. You’ll also have to pay the probate fees calculated by the court registry. The deceased’s bank will usually allow you to take these funds from the deceased’s account.

Some assets don’t require probate

It depends on the type of assets in the estate. Certain assets can be passed down without probate. Land owned in joint tenancy with another person doesn’t require probate. If the deceased owned land or a house in joint tenancy with another person, you only have to file an application in the Land Titles Office along with the death certificate. This will register the land in the name of the surviving joint tenant.

Also, probate isn’t required for joint bank accounts or vehicles owned jointly. Again, the death certificate is usually sufficient to transfer these to the surviving joint owner.

In addition, RRSPs and insurance policies, which typically name a beneficiary to receive the proceeds when the owner dies, aren’t considered part of the estate, and therefore don’t require probate. You should give the death certificate to any insurance companies and RRSP administrators that the deceased had plans with. They’ll want the death certificate before paying money to a beneficiary.

Stocks and bonds

If the estate includes securities, such as stocks and bonds, you may have to apply for probate to transfer them. You should check with the financial institution or transfer agent for each security in the estate because they’ll have different requirements.

Deal with any pensions

If the deceased paid into the Canada Pension Plan (CPP), immediately apply to the local CPP office to inform them of the death and obtain any death, survivor, or orphan benefits. Most funeral directors can give you information and forms on CPP death benefits. You should also check with the deceased’s employer and union about any benefits from their work. If the deceased was receiving an old age security pension or other pensions, you also need to inform those pension offices about the death. Any CPP or old age security cheques for the month after the month in which the person died must be returned uncashed.

File certain income tax returns and pay income tax

You must file tax returns for any years the deceased didn’t file a return for. If the estate made any income after the date of death (such as rental income or interest on bank accounts), then tax returns will have to be filed for the estate for each year after death, until the estate is wound up or paid out.

Get a tax clearance certificate from CRA

The estate must pay taxes and obtain a tax clearance certificate from Canada Revenue Agency (CRA) before it can be distributed to beneficiaries. This certificate confirms that all income taxes and fees of the estate are paid. It’s important. Without it, CRA can impose taxes that you don’t know about.

Pay the estate’s debts

Depending on the circumstances, you may want to advertise for possible creditors so you can make sure all legitimate debts are paid. This is to protect yourself against creditor claims that arise after you distribute the estate. As the executor, you could be personally liable if you don’t pay the deceased’s debts, including any taxes owed, before you distribute the estate. You should talk to a lawyer about this.

Wait before distributing the estate because of the wills variation provisions of WESA

The wills variation provisions of the Wills Variation Act allows any child or spouse of the deceased to apply to the court to vary or change the will. There is a 180-day deadline, starting from the granting of probate, for applications to vary the will, plus 30 days to serve the executor with the claim (give the claim to them). So you should wait at least 210 days from the grant of probate before distributing the assets of the estate, or obtain consents and releases from each potential claimant. You are responsible if the assets go to the wrong people: you could be sued.

Finally, distribute the estate to the beneficiaries

But before distributing the assets under the will, submit a full accounting of the estate’s financial activities and obtain a release from each beneficiary. Your accounting will usually include a claim for reimbursement of expenses that you paid while serving as executor. You’ll have to decide if you also want to claim a fee for acting as executor. This fee can be up to 5% of the estate and is taxable income. If you want to claim a fee, include it in the accounting that you send to the beneficiaries.

Unless there is only one beneficiary, such as a spouse or children, you may not want to distribute any part of the estate to beneficiaries until you get the CRA clearance certificate. If the whole estate goes to a spouse, and you transfer most of the estate to them before you have the clearance certificate, the spouse will be responsible for any outstanding debts and taxes. The executor usually has a year (called the “executor’s year”) to complete the process, but it can take much longer, especially if the assets or liabilities are complicated, trusts are involved, or you cannot find a beneficiary.

More information

•Scripts 176 and 179


[updated April 2017]

The above was last reviewed for accuracy by Hugh McLellan and edited by John Blois.


Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International Licence Dial-A-Law © People's Law School is licensed under a Creative Commons Attribution - NonCommercial - ShareAlike 4.0 International Licence.