Family, Estates & Trusts 

FREE CONSULTATIONS

|

How long does an executor have to settle an estate in Canada?


  • Blog
  • Estate Law
  • How long does an executor have to settle an estate in Canada?

An executor appointed in a will is the personal representative of the deceased. It is an important role that comes with a lot of responsibilities. The executor’s tasks include handling the funeral, paying estate debts, locating beneficiaries, filing income tax returns, and distributing estate assets. It takes time to perform these tasks, and to do the job properly. But how long is too long to settle an estate? If you are an estate beneficiary, you may be growing impatient. Is there a time limit on the executor to fulfill their duties and finish the job?

Does the role of an executor have a time limit?

Does the role of an executor have a time limit?

Because each estate is different, there is no hard deadline or time limit. The estate settlement process can take longer if the estate is complicated, or if issues arise (e.g., a challenge to the validity of the will, or a wills variation claim by a disappointed beneficiary).

Does that mean the timing for estate settlement is entirely up to the estate trustee?

No. Regardless of how simple or complex the deceased’s estate may be, an executor must not “unreasonably delay” in settling the affairs of the estate. In fact, an executor can be personally responsible for loss caused by inaction or undue delay. So, when beneficiaries think that things are moving too slowly, the question is why is it taking so long to wrap up the estate. Is the delay unreasonable in the circumstances? Was the delay caused by something the executor did or failed to do?

So, how long does an executor have to settle an estate in BC?

how long does an executor have to settle an estate in BC?

While there is no strict deadline, there is a general rule of thumb. In BC, an estate trustee has one year to gather the estate assets and settle the affairs of the estate. This is known as the “executor’s year.” It begins to run from the date of death, or from the date the probate application is granted (if it is necessary to apply to probate court).

Can an executor withhold money from a beneficiary in Canada?

During the executor’s year there is no obligation on the executor to distribute estate assets or any income earned on estate assets to beneficiaries. During that year, beneficiaries can’t compel an executor to pay cash gifts set out in the deceased’s will.

Why is the “executor’s year” necessary?

Why is the executor’s year necessary

As mentioned, the role of an executor comes with a long list of responsibilities. The executor must take charge of the estate assets, apply to probate court if necessary, advertise for creditors, pay estate debts, notify beneficiaries, ensure investments are authorized, coordinate with banks and financial institutions, and keep accounts of the estate’s revenues and disbursements throughout the estate settlement process. The rule of thumb “executor’s year” recognizes that all these steps time, and that snags can arise that slow the process down through no fault of the estate trustee (e.g., dealing with foreign assets, real property sitting on the market with no offers, delays in processing probate court applications).

Another good reason for the “executor’s year”

Another good reason for the executor’s year

Another very important reason for the executor’s year is that BC’s Wills, Estates and Succession Act (“WESA”) imposes a 210-day waiting period during which an executor must not distribute the estate without beneficiary consents or a court order. The waiting period is needed to allow time for any claims for maintenance from the estate—also known as a wills variation claim—to be brought. These claims can be brought by the deceased person’s spouse or children if they believe that the will fails to make adequate provision for them. A wills variation claim must be started within 180 days from the date the representation grant is issued and served on the estate executor no later than 30 days after that. If the executor distributes an estate before the 210-day waiting period has passed, he or she is exposed to personal liability if a maintenance claim is later brought. If the deceased’s will is challenged, the estate administration process is put on hold and the executor must not distribute the estate without the court’s permission.

What if estate settlement doesn’t happen within the “executor’s year”?

What if estate settlement doesn’t happen within the “executor’s year

Ideally, the executor will keep beneficiaries informed as to the status of the estate’s administration. Not all executors follow this good practice. If the estate administration process takes longer than one year, and beneficiaries are not satisfied with the level of communication or with the executor’s performance of their duties, there are options:

  • After the executor’s year has passed, a beneficiary can apply to court to compel the executor to pass their accounts. The judge will consider the situation and make an order setting the time and method of passing the accounts. If the estate is particularly complex, the courts may be sympathetic to the executor and accept that the executor needs more time.
  • If accounts have not been passed after two years, a beneficiary can again apply to the court to require passing of the executor’s accounts. The executor will need to explain why the estate has not yet been settled.
  • In some situations, a beneficiary can apply to court demanding payment from the estate.
  • In more extreme cases, a beneficiary can apply to court to have estate trustee removed for inaction or undue delay.

Ways to speed up the estate settlement process

The estate settlement process can be sped up by good estate planning. There are many simple and effective steps that can cut down on how time-consuming estate settlement will be. “Inter vivos” transfer of real property or a bank account into joint tenancy is one option; these assets will automatically transfer to the surviving joint tenant after the death of the first joint tenant. If this is done during a person’s lifetime, there is no need for a probate application to transfer that property after their death. The use of trusts is another estate planning strategy that can streamline the process. Assets that are placed in the trust are owned by the trust, not the deceased’s estate.

Do you need help with the estate settlement process?

The estate settlement process can be time-consuming and stressful for both executors and named beneficiaries. Our team of estate planning lawyers and estate litigators can help you navigate the process. Contact us today for practical advice and effective solutions.

Have questions about a topic?

Onyx Law Group represents clients in family law, estate and trust litigation, estate planning and probate matters. Consult with our experienced team at 
(604) 900-2538

TELL US HOW WE CAN HELP

(604) 900-2538

Contact Us
  • We were made to feel valued and heard. Integrity, competence and a passion for justice definitely describes Onyx. They are also caring, compassionate and have a good sense of humour.

  • Thanks to Onyx’s straightforward approach, this litigation was resolved with the best outcome for myself and my children. Although this ordeal was emotionally trying, we can get on with our lives, without added worry and stress.

  • I chose the right law firm and I know our future is on the proper course because of Onyx. I wouldn’t hesitate to tell anyone who needs good legal representation to take my words to heart.

We will find the best way to help you

Vancouver

650 West Georgia Street
Suite 1215 - The Scotia Tower
Vancouver, BC  V6B 4N9

T (604) 900 2538
F (604) 900 2539

reception@onyxlaw.ca

New Westminster

26 Fourth Street
Suite 100
New Westminster, BC  V3L 5M4

T (604) 900 2538
F (604) 900 2539

reception@onyxlaw.ca

Kelowna

1631 Dickson Avenue
Suite 1100
Kelowna, BC  V1Y 0B5

T (604) 900-2538
F (604) 900-2539

reception@onyxlaw.ca