I recently met with Jill (not her real name) at my law office in Stittsville (Ottawa). Jill’s brother recently passed away. Although they had talked about it many times, her brother had never gotten around to doing a Will. In the law, we say that he died ‘intestate’. Jill was prepared to act as his executor but wasn’t sure of the process. Someone had also told her she would need something called an ‘executor’s bond’ but she wasn’t sure what that was.
I explained to Jill that when someone dies without a Will, only a judge can appoint an executor (also called an estate trustee). She would have to apply to the court for a ‘Certificate of Appointment of Estate Trustee without a Will’. Until the Certificate of Appointment of Estate Trustee without a Will is granted, Jill would have no authority to do anything with her brother’s estate.
I told Jill that an executor’s bond is required unless all of her brother’s beneficiaries (as determined by Ontario’s intestacy laws) consent or if his estate is not liquid enough to cover the estate administration tax (probate fees), for example, investment companies might not release funds for probate fees.
I went on to explain to Jill that the cost of the bond is payable by the estate. The amount of the bond premium varies with the size of the estate and the perceived risk. Most executor’s bonds must be purchased for a minimum of three years. There are specific steps that must be taken to return the bond to the insurance company when the estate administration is complete. In order to complete the bond application, Jill, as the proposed executor or estate trustee, will be required to reveal a great deal of personal financial information. Without it, the bond application will likely be declined.
If someone you love has recently passed away without a Will, make an appointment to meet with one of our lawyers. We will guide you through the process so you can take care of your loved one’s affairs and deal with the estate. We can be reached at info@personalawgroup.com or 613.836.9915.
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.
