An executor named in a last will is entitled to administer an estate. If the decedent dies intestate, i.e. without a will, their closest relative can apply to the court in order to become the administrator of the estate.

Estate administration can be complex and demanding, depending on their specific circumstances. However, this tax blog will outline the most frequent tasks for an executor to anticipate by the Wills and Estate Administration Act (WESA) of British Columbia:

Key duties and responsibilities of an executor in administration of deceased person’s estate in Canada

1. Locate the last will, confirm its validity, and then review instructions concerning funeral arrangements, organ donation, and disposition of remains.
2. Notify the Canada Revenue Agency (CRA) and apply for CPP and Death Benefit
3. Inform the banks and credit card companies of the individual’s death to close all the deceased’s bank accounts and cancel their credit cards and other licenses
4. Opening an estate bank account
5. Arrange the funeral as per instructions in the will if any and pay for the funeral expenses
6. Obtain an official death certificate from the respective province or territory
7. Retain a solicitor to advise on the estate administration and carry out the legal work required
8. Arrange the initial meeting with the beneficiaries noted in the last will and discuss the executor’s duties and obligations as well as the steps required to settle the estate
9. Ensure the family’s immediate financial needs can be met
10. Communicate directly with the beneficiaries, provide regular updates and avoid conflict over executor’s fees
11. Identify, locate, safeguard and value the assets of the estate wherever necessary
12. Identify the liabilities of the estate, estate expenses, and claims against the estate
13. Carefully examine the assets passing outside the estate directly to the beneficiaries to ensure that they do not belong to the estate
14. Make a list of the deceased’s assets and liabilities they had upon their death and provide it to the solicitor to facilitate the preparation of the statement of assets and liabilities on the date of death for the estate
15. Probate the will if required, pay the probate fees to the respective provincial government, and obtain the grant of the probate
16. Assess if there is any liquidity issue and consider selling the assets of the estate to arrange the cash
17. Pay the outstanding personal debt from loans and mortgages, household bills, and medical or home care bills of the deceased
18. Advertise for the creditors to ensure they learn about the individual’s death and bring forward any claims that have not been identified informing them of the individual’s passing
19. Settle any debt upon verification and dispute any invalid claim against the estate
20. Obtain a copy of the last T1 individual income tax return filed by the deceased
21. Submit a certified copy of the individual’s last will with their death certificate to the CRA
22. Opening an estate bank account
23. File all required various Canadian income tax returns and US non-resident estate tax return if required for the deceased and their estate
24. Ensure all income taxes are paid with the CRA on or before the payment due date
25. Review the notice of assessments from the CRA to identify errors or additional amounts to be paid and file the notice of objection immediately if appropriate
26. Ask for a clearance certificate from the CRA
27. Keep accurate and detailed accounting records of the estate and report to beneficiaries
28. Obtain approval of the estate accounts and releases from the adult beneficiaries before the final distribution of the estate
29. Distribute the specific bequests first and then arrange for final distributions to the beneficiaries
30. Advise the bank to close the estate account

It’s essential to understand that an executor is legally obligated to administer the estate in accordance with the deceased’s last will. Failure to do so can result in legal action. It is advisable that the executor when unsure of the estate administration process should seek the assistance of a qualified lawyer specialized in wills and estates or other legal professional.

For more details on the tax filing responsibilities of the executor, please read: Executors: Understanding of Tax Return Filing Obligations and Mitigation of Financial Liabilities

Raj Pandher is a qualified CPA (cross border tax accountant) and Certified Executor Advisor(CEA) who assists the executors in fulfilling their key responsibilities and duties in administering estates in British Columbia, Canada.