Few of us are familiar with how long the administration of an estate can take. People are surprised to learn that it generally takes an executor (more formally known as an “estate trustee”) a year to a year and a half to administer and wind up even a simple estate … longer if the estate is complex or there are assets in other jurisdictions or there are unexpected problems.
Without question, an executor’s to-do list is lengthy. Some of the many tasks include:
• locating and probating the Will, if there is one,
• arranging the funeral and disposition of the deceased’s remains,
• locating and securing the deceased’s assets ,
• liquidating assets (turning them into cash) such as arranging the sale of a home or cottage,
• paying debts,
• filing tax returns,
• obtaining Certificates of Compliance or Clearance Certificates, as needed, and
• finally distributing the estate to the beneficiaries.
An executor’s many tasks take time to complete. There are also many reasons why estate administration can take more time. Here are some of the most common::
Errors in Tax Filings: If the deceased did not file income tax returns regularly or made errors on those that were filed, an executor must catch up missed tax filings and correct any errors (re-file and await re-assessment).
Delays by CRA in Issuing Clearance Certificates: An executor should obtain a Clearance Certificate before distributing estate property that he or she controls. However, a Clearance Certificate cannot be requested until the Notice of Assessment has been issued for the final tax return of the deceased or for the last estate trust return. Once requested, it can be another six months or more before it is issued by CRA.
Foreign Beneficiaries: If the executor or any estate beneficiary lives outside Canada, extra steps will be required such as forms to be submitted and taxes may have to be withheld and submitted directly to CRA.
Disagreements/Litigation: Disagreements or litigation involving the estate will cause delay. This could be a claim by a creditor that the executor is questioning or a claim by a former or current spouse or by a dependant of the deceased.
Minor Beneficiary: In Ontario a beneficiary under the age of 18 is considered a minor and cannot receive an inheritance directly. The executor may pay the inheritance into Court for the beneficiary (who can apply at age 18 to have it paid out) or, if the Will has appropriate provisions, the executor or someone else may hold the inheritance on behalf of the minor.
If you have been appointed as the executor of an estate, email ([email protected]) or call (613.836.9915) to make an appointment to meet with me today at my law office in the Kanata-Stittsville area of Ottawa. We will review the many duties and responsibilities of an executor and help you navigate any delays you may encounter.
Reproduction of this blog is permitted if the author is credited. If you have questions or if you would like more information, please call us at 613 836-9915. This blog is not intended to be legal advice but contains general information. Please consult a lawyer or other professional to determine how the information in this blog might apply to you.
Blog posts pre-dated December 1, 2015 were originally published under Neff Law Office Professional Corporation.
