When a person dies, there are numerous steps an executor must take in the course of settling the estate. An executor is the person named in a will who is legally responsible for managing the deceased’s estate — securing assets, paying debts, and ultimately distributing what remains to the beneficiaries. Administering an estate can take time and the job may seem daunting, but it doesn’t have to be. Enlisting the help of a professional, such as an estate lawyer, can help things go more smoothly and may save you a lot of unnecessary grief during the process.
Immediate Responsibilities After a Death
The first step is to have the deceased’s body moved to a funeral home or crematorium. If there were no prepaid arrangements, the executor is responsible for arranging the burial or cremation. If there is no Will appointing an executor, the next-of-kin will have the authority to make those arrangements in accordance with the B.C. Cremation, Interment and Funeral Services Act. Typically the funeral home will assist with ordering a Death Certificate and notifying Vital Statistics and Service Canada.
Early tasks generally include:
- Obtaining a Certificate of Death from Vital Statistics
- Assisting with funeral arrangements
- Meeting with an estate lawyer
- Locating and securing the original Will, and reviewing it along with any Codicils or Memorandums
Gathering Information and Valuing the Estate
All of the deceased’s paperwork should be collected and organized, including but not limited to bank and investment statements, pension statements, life insurance and tax documents. The executor must then determine the value of all of the deceased’s assets and unpaid debts, which will require consultation with various financial institutions and, where necessary, appraisals.
Other tasks at this stage include:
- Confirming insurance policies are in place for real estate and personal property
- Securing valuable assets and obtaining storage, vacancy insurance, or insurance riders where applicable
- Managing utility accounts such as electricity and water
- Filing claims for life insurance and pension death benefits, and applying for survivor’s benefits
- Determining sources of income and making sure income tax filings are up to date
- Verifying outstanding debts and advertising for creditors
- Dealing with digital assets and online accounts
Applying for a Grant of Probate
If the value of an estate is greater than $25,000, the executor will need to apply to the court for a Grant of Probate, which will validate their appointment as executor and allow them to access, liquidate, sell, transfer and distribute the assets of the estate. This involves:
- Providing Notice of intention to apply, and a copy of the Will, to the appropriate parties (e.g., beneficiaries named in the Will and intestate successors)
- Completing the required application for an estate grant in the prescribed form
- Paying the necessary probate fees (at time of writing, B.C. probate fees are $6 for every $1,000 by which the estate’s value exceeds $25,000 up to $50,000, and $14 for every $1,000 by which it exceeds $50,000 — please confirm these figures are still current)
Administering the Estate After Probate
Once the estate grant is issued by the court, the executor administers the estate assets in accordance with the provisions in the Will. This includes calling in all assets, paying all debts, and filing the deceased’s date of death tax return along with estate tax returns for any income earned after the date of death. Hiring an estate accountant will help ensure these returns are done properly.
The executor must also apply for a Clearance Certificate from the Canada Revenue Agency, prepare a detailed accounting of all funds in and out of the estate for the approval of the beneficiaries, and distribute the remaining funds accordingly.
When to Get Help From an Estate Lawyer
This is not an exhaustive list. Each estate is different, and some will be more complicated than others — for example, if the deceased owned foreign property or company shares. An estate lawyer can help you put together a more comprehensive list tailored to your specific situation, assist with the prescribed forms required by the court, and be an invaluable asset when it comes to navigating the complexities of estate administration.
If you’ve been named an executor and aren’t sure where to start, our Wills & Estates team can walk you through the process and help you administer the estate with confidence.
