Estate Administration: Executor Duties in Alberta

When someone passes away, their estate must go through a process called estate administration, where the deceased’s assets are distributed according to their will or Alberta’s intestacy laws. This process is managed by the executor, who is tasked with ensuring the deceased’s wishes are carried out and that all legal obligations are met.

Being named the executor of an estate is a significant responsibility. If you've been named as the executor, it’s essential to understand your duties and obligations. In this article, we will walk you through the key responsibilities of an executor in Alberta, explain the steps involved in estate administration, and offer tips on how to manage this important role effectively.

What is Estate Administration?

Estate administration is the legal process of managing and distributing a deceased person's assets. It involves several tasks, including gathering the deceased’s assets, paying off debts and taxes, and distributing the remaining property to the beneficiaries.

In Alberta, the process of estate administration begins with the probate of the will, if there is one. The executor is the person named in the will to oversee the estate’s administration. If there is no will, the court will appoint an administrator to manage the estate.

What Does an Executor Do?

An executor plays a crucial role in managing the estate. They are legally responsible for ensuring that the estate is administered according to the terms of the will or Alberta’s laws. Here are the key duties of an executor in Alberta:

1. Apply for Probate

The first step in administering an estate is to apply for probate—the legal process that confirms the validity of the will and gives the executor the authority to act on behalf of the estate. The executor must file the will with the Court of King’s Bench along with the necessary documents.

If the deceased died without leaving a will, a Grant of Administration needs to be applied for instead.

Why it matters: Without probate, the executor cannot legally manage or distribute the estate’s assets. You can learn more about probate in Alberta in our article on Probate Fees in Alberta: What to Expect.

2. Identify and Secure the Deceased’s Assets

As the executor, you are responsible for identifying and locating all of the deceased’s assets. These may include:

• Bank accounts
  
• Real estate properties
  
• Personal property (e.g., jewelry, artwork)
  
• Investments and retirement accounts
  
• Business interests
  
• Life insurance policies
  

Once identified, it’s crucial to secure and protect these assets to prevent any loss, theft, or depreciation while the estate is being administered. This may include placing insurance on valuable items, changing locks on properties, or freezing bank accounts to prevent unauthorized access.

Why it matters: Securing the assets helps ensure that they remain intact for distribution to the beneficiaries and prevents any disputes during the estate administration process.

3. Pay Debts and Taxes

One of the primary duties of the executor is to pay any debts and taxes owed by the estate. This may include:

• Funeral expenses
• Outstanding bills or loans (e.g., credit card debt, mortgages)
• Income taxes owed by the deceased
• Property taxes on real estate owned by the deceased

It is important to notify creditors of the death and address any claims made against the estate. The executor must also ensure that all required tax returns are filed and that the estate’s tax liabilities are paid before distributing assets.

Why it matters: Failing to pay debts or taxes can lead to legal consequences for the executor and delay the distribution of assets. A wills and estates lawyer can help navigate these complex issues.

4. Distribute the Assets According to the Will or Alberta’s Intestacy Laws

Once all debts and taxes have been settled, the executor can distribute the remaining assets to the beneficiaries named in the will. If there is no will, the assets will be distributed according to Alberta’s Wills and Succession Act, that outlines how the deceased’s property will be divided among family members.

Why it matters: Distributing the estate according to the will or legal requirements ensures that the executor is fulfilling the deceased’s wishes and protecting the interests of the beneficiaries.

5. Maintain Accurate Records

The executor is required to keep detailed records of all transactions related to the estate. This includes:

• Income and expenses associated with the estate administration.
• Distributions to beneficiaries.
• Correspondence with creditors, beneficiaries, and government agencies.
• Legal documents and contracts related to the estate.

Keeping accurate and up-to-date records is crucial to avoid disputes and provide transparency for the beneficiaries. Executors may be required to provide an accounting of the estate to the beneficiaries or the court.

Why it matters: Clear and accurate records protect the executor from liability and provide a paper trail that can be reviewed if any disputes arise.

Executor Compensation

In Alberta, an executor is generally entitled to be compensated for their time and effort spent managing the estate. The amount of compensation can vary and should be reasonable, typically based on the size and complexity of the estate. Compensation can be set by the will or determined by the court if there is a dispute. Please refer to our article Executor Compensation in Alberta: Understanding Fees and Expenses.

Why it matters: While executors are entitled to compensation, it’s important to ensure that the fees are reasonable to avoid conflicts with beneficiaries.

How to Be a Successful Executor

Being an executor is a significant responsibility, and it can sometimes be overwhelming. Here are some tips to help you succeed in this role:

1. Stay Organized: Keep track of all tasks and deadlines related to the estate administration. Create a checklist to help you stay on track.
2. Seek Professional Help: If you’re unsure about your duties or need guidance, don’t hesitate to consult a wills and estates lawyer. They can help you navigate the complexities of estate law.
3. Communicate with Beneficiaries: Keep beneficiaries informed about the progress of the estate administration. This helps manage expectations and reduces the likelihood of disputes.
4. Take Your Time: Estate administration can take several months or even years, depending on the complexity of the estate. Ensure that you give yourself enough time to complete all tasks thoroughly.

Final Thoughts

Serving as an executor in Alberta is a significant role, and understanding your duties and responsibilities is key to ensuring the smooth administration of the estate. By following the steps outlined in this guide and seeking professional advice when needed, you can fulfill your responsibilities and ensure that the deceased’s wishes are carried out efficiently.

If you’ve been named as an executor and need guidance on how to proceed, the Wills & Estates team at Libra Law is here to help. Book a wills & estates consult today to ensure you have the support you need throughout the estate administration process.

Disclaimer:

This article is for general informational purposes only and does not constitute legal advice. To obtain advice specific to your situation, please consult a lawyer or qualified professional.