Probating the Will

Here’s a checklist of general tasks after probate, in order of priority. While being an executor does not have to be difficult, there are lots of details and you need to be organized. The following are some of the things you may have to do.

Deal with assets

• Close all bank, credit union, trust company accounts the person held. You may want to put all money into one account for the estate.

• Send in claim forms for death benefits or pension benefits. This may involve contacting the employer, the union, Canada Pension, Old Age Security, Veterans Affairs.

• Collect any money coming to the person or the estate including salary and insurance.

• Apply to transfer assets such as real estate property, a car, bonds and other items with a registered title. Assets of the estate are transferred first to the executor and then to the beneficiary. These steps are often done at the same time. The land title office has the forms for transferring real estate. Autoplan handles transfers of motor vehicles.

• Keep records of all income received and any expenses paid. Keep copies of all letters and forms you send.

Pay debts and outstanding expenses

• reasonable funeral expenses • probate fees and legal costs • municipal and income taxes • all other claims as of the date of death

If the estate does not have enough money to pay all outstanding debts, it is very important to get advice from a lawyer as soon as possible so that you do not become personally liable for the debts.

Prepare and file income tax returns

You need to file a final income tax return for the person. If the person had assets or income in another country, you may need to file a foreign income tax return as well. Ask Canada Revenue Agency for their booklet “Preparing Returns for Deceased Persons.” This guide is available online at www.cra-arc.gc.ca.

After the income tax is reported, assessed and paid, apply for a Clearance Certificate. For your own protection, you should have this certificate before you begin to distribute the estate. Call Canada Revenue Agency for information and forms - 1.800.959.2221.

Distribute the estate

Do not distribute the estate until six months after probate is granted. You do this to make sure that no one is going to challenge the Will. If all those who have a claim on the estate sign a form saying they will not contest the Will, you can go ahead sooner.

General tasks

• Distribute gifts of legacies and gifts of personal bequests to people or organizations named in the Will. Sometimes the person attaches a separate list with the Will that says who should receive particular items.

• Prepare a final statement of assets, debts, income, expenses and distribution. This is for the beneficiaries to approve and is called “passing of accounts.”

• If any cash and belongings remain after you distributed the specific gifts, divide the remainder or residue as instructed by the Will. If the Will does not have a residue clause, you must distribute the remainder as if there was no Will. This is set out in the Estate Administration Act. The Probate Guide listed in the next section may help.

• If a beneficiary is a non-resident of Canada, you may need to obtain a clearance certificate from Canada Revenue Agency.

Manage the trust

A trust is a part of your estate that is set aside in your Will for a beneficiary, most often a child. For small or simple estates, the executor is often also the trustee. In larger or more complicated estates, there may be a different trustee, such as a trust company.

If you are acting as trustee, you are responsible for making sure that all the assets are invested or kept in a safe place, and for filing annual trust tax returns. You are also responsible for making payments to the beneficiary of the trust as directed by the Will. You can get help with these tasks from a lawyer or an accountant. Contact Revenue Canada for a copy of the booklet called “T3 Trust Guide”:
1.800.959.2221
www.cra-arc.gc.ca