After the Grant: Estate Administration

Overview

The grant gives you legal authority to act. Now you must actually collect the assets, pay the debts, file taxes, and distribute to beneficiaries. This phase often takes longer than getting the grant itself – typically 3-9 months more.

Collecting assets

With grant in hand, contact each institution holding estate assets:

Bank accounts

• Bring the certified grant and your ID to each bank
• Complete their estate forms
• Have funds transferred to the estate account or issued as cheques
• Close the accounts once emptied

Investment accounts

• Contact each broker/advisor
• Decide: transfer investments to beneficiaries or liquidate for cash
• Consider tax implications of selling (capital gains)

Real estate

• File the grant at the Land Title Office
• Decide: transfer to beneficiary or sell
• If selling, list with an agent and handle the sale
• Pay out any mortgage

Vehicles

• Contact ICBC
• Transfer to beneficiary or sell

Other assets

• Safety deposit boxes (bank will give you access)
• Life insurance (contact insurer – may not require grant if beneficiary is named)
• Pensions and death benefits
• Amounts owed to the deceased

Paying debts

Critical rule: Pay debts BEFORE distributing to beneficiaries. If you distribute first and there aren't enough assets left to pay creditors, you can be personally liable.

What to pay:

• Funeral expenses
• Outstanding bills (utilities, credit cards, loans)
• Mortgages and secured debts
• Taxes owing (see below)
• Professional fees (lawyers, accountants, probate services)
• Estate administration costs (bank fees, postage, etc.)

What NOT to pay:

• Debts you're not sure are valid – investigate first
• Claims that seem inflated or fraudulent
• Time-barred debts (check limitation periods)

Taxes

Terminal return (T1)

• The deceased's final personal tax return
• Covers January 1 to date of death
• Due April 30 of the following year (or 6 months after death if death was in November/December)
• Report all income earned up to death
• Can trigger deemed disposition of capital assets

Estate trust returns (T3)

• If the estate earns income after death (interest, rent, dividends)
• Required if the estate takes more than a year to settle
• Consider hiring an accountant

CRA clearance certificate

• Optional but recommended
• CRA confirms all taxes are paid
• Protects executor from personal liability for taxes
• Can take 3-6 months to receive
• Request using Form TX19

Distribution

Follow the will exactly

• Specific gifts go to named recipients
• Residue (what's left) is divided as the will directs
• You cannot change the distribution, even if it seems unfair

Prepare distribution statements

• Show each beneficiary what the estate received
• Show what was paid out for debts and expenses
• Show their calculated share

Get releases

• Have each beneficiary sign a release acknowledging receipt
• The release protects you from future claims
• Don't distribute final amounts without releases

Closing the estate

Final steps:

• Make final distributions
• Close the estate bank account
• File final tax returns
• Collect all releases from beneficiaries
• Keep records for at least 7 years (CRA requirement)

There's no formal "closing" with the court. The estate is simply done when all assets are distributed and all obligations are met.

Typical post-grant timeline

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