An estate trustee (the person named as executor in a will, or appointed by the court if there is no will) is responsible for collecting the deceased's assets, paying their debts and taxes, and distributing what remains to the beneficiaries. The role is a fiduciary one — the trustee must act in the interests of the estate and its beneficiaries, not their own.
Immediately after death: Locate the will and confirm your appointment. Secure estate assets — change locks if necessary, notify banks, stop automatic payments. Arrange for the funeral if no one else has. Obtain multiple death certificates — you'll need them.
In the first few months: Determine whether probate is required (see our probate briefing). Open an estate bank account. Notify all relevant institutions, government agencies (CRA, Service Canada, CPP), and any pension administrators. Inventory all assets and their values as of the date of death.
Ongoing during administration: Advertise for creditors and wait out the appropriate period. Pay valid debts and expenses from estate funds. File the deceased's final income tax return (T1) and any prior unfiled returns. File a T3 trust return for the estate if it earns income. Do not distribute assets until taxes are settled and a CRA clearance certificate is obtained.
Final steps: Prepare estate accounts showing all receipts and disbursements. Get beneficiary consent to the accounts or pass accounts through the court. Make final distributions. Take compensation if entitled, with beneficiary consent or court authorization.
Simple estates can be administered in 12 to 18 months. Complex estates — involving real estate, businesses, tax issues, or disputes — can take years. The main driver of delay is usually the CRA clearance certificate, which typically takes 6 to 12 months to obtain after filing.
Estate trustees can be personally liable for distributing assets before debts are paid, failing to obtain a CRA clearance certificate before final distribution, self-dealing, or failing to invest estate funds appropriately. See our briefing on estate trustee liability for more detail.
This is a general overview. For advice specific to your situation, contact Sheard Law at 416-860-9990 or use our intake form.
