Difference between revisions of "Duties of a Personal Representative (16:XII)"
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Desy Wahyuni (talk | contribs) m (Desy Wahyuni moved page Duties of a Personal Representative (16B:II) to Duties of a Personal Representative (16:XII)) |
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{{REVIEWED LSLAP | date= August | {{REVIEWED LSLAP | date= August 10, 2021}} | ||
{{LSLAP Manual TOC|expanded = probate}} | {{LSLAP Manual TOC|expanded = probate}} | ||
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* Prepare and file tax returns; | * Prepare and file tax returns; | ||
* Notify appropriate agencies (pensions, subscriptions, charge accounts, etc.); | * Notify appropriate agencies (pensions, subscriptions, charge accounts, etc.); | ||
* Consider advertising for creditors | * Consider advertising for creditors (see '''Section IV-F: Payment of Debts below''') | ||
* Paying all valid debts left to the estate (please note that an executor or administrator may be held personally liable for unsettled debts after the distribution of the estate); and | * Paying all valid debts left to the estate (please note that an executor or administrator may be held personally liable for unsettled debts after the distribution of the estate); and | ||
* Preparing and obtaining approval for the beneficiaries for distribution of estate. | * Preparing and obtaining approval for the beneficiaries for distribution of estate. | ||
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'''If no estate exists or if the executor has not applied for the death benefit''', payment may be made to other persons who apply for the benefit in the following order of priority: | '''If no estate exists or if the executor has not applied for the death benefit''', payment may be made to other persons who apply for the benefit in the following order of priority: | ||
# The person or institution that has paid for or that is responsible for paying for the funeral expenses of the deceased; | |||
# The surviving spouse or common-law partner of the deceased; or | |||
# The next-of-kin of the deceased. | |||
To be entitled to a CPP death benefit, the deceased must have made contributions to the lesser of: | To be entitled to a CPP death benefit, the deceased must have made contributions to the lesser of: | ||
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Those with a significant amount of money in RRSPs should consult a tax lawyer or tax accountant for estate tax planning advice, as there are several tax rules that apply solely to the final year of a person’s life. | Those with a significant amount of money in RRSPs should consult a tax lawyer or tax accountant for estate tax planning advice, as there are several tax rules that apply solely to the final year of a person’s life. | ||
== E. Time for Distributing the Estate == | == E. Time for Distributing the Estate == | ||
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The concept of the executor’s year has two aspects: | The concept of the executor’s year has two aspects: | ||
# A court will ordinarily not compel an executor to make a distribution before the expiry of this period. | |||
# Except when specifically provided in a will, a legacy will not carry interest until a year after the death of the will-maker. | |||
However, it should also be noted that under section 155 of WESA, a personal representative of a deceased person must not distribute the estate of the deceased in the '''210 days following the date of the issue of a representation grant''' except with the consent of all the beneficiaries and intestate successors entitled to the estate or by an order of the court. This period is to allow any individuals who wish to make a claim against the estate to file a claim. Additionally, the personal representative must not distribute the estate after 210 days without the consent of the court if: | However, it should also be noted that under section 155 of ''WESA'', a personal representative of a deceased person must not distribute the estate of the deceased in the '''210 days following the date of the issue of a representation grant''' except with the consent of all the beneficiaries and intestate successors entitled to the estate or by an order of the court. This period is to allow any individuals who wish to make a claim against the estate to file a claim. Additionally, the personal representative must not distribute the estate after 210 days without the consent of the court if: | ||
:a) There is a commenced proceeding to determine if a person is a beneficiary or if a person is an intestate successor, | |||
:b) If relief is sought under a wills variation claim, or | |||
:c) Other proceedings have been commenced which may affect the distribution of the estate | |||
== F. Payment of Debt == | == F. Payment of Debt == | ||
'''The personal representative is personally liable for payment of creditors if they pay the beneficiaries before the debts of the estate'''. Thus, a personal representative should advertise in the British Columbia Gazette under section 154 of WESA, wait 30 days from the last publication, pay any claims that arise, and then pay the beneficiaries. Having advertised, the personal representative will not face personal liability. But the personal representative would still be responsible for the debts, regardless whether they have advertised or not, if the personal representative has knowledge of the creditor’s claim prior to distribution. | '''The personal representative is personally liable for payment of creditors if they pay the beneficiaries before the debts of the estate'''. Thus, a personal representative should advertise in the British Columbia Gazette under section 154 of ''WESA'', wait 30 days from the last publication, pay any claims that arise, and then pay the beneficiaries. Having advertised, the personal representative will not face personal liability. But the personal representative would still be responsible for the debts, regardless whether they have advertised or not, if the personal representative has knowledge of the creditor’s claim prior to distribution. | ||
== G. Income Tax Clearance Certificate == | == G. Income Tax Clearance Certificate == | ||