Custom guide to help you through the various steps involved in the estate settlement process

Obtaining certificates authorizing the distribution of the estate assets

Obtaining the clearance certificate and the certificate authorizing the distribution of property ensures that the heirs will not be liable for unpaid taxes of the deceased.

Caution

Before proceeding with the declaration of legal heirs and/or the appointment of a liquidator, make sure first that you do not wish to renounce the succession/estate, since the signing of such a document is an act that can be deemed as an acceptance of the succession on your part. Draw up the estate inventory beforehand.

2 If a person dies as a result of:

• injuries caused by a hunting accident;
• injuries caused by a motor vehicle accident;
• an industrial accident or occupational disease;
• a criminal act;
• an act of good citizenship.

Depending on the particular circumstances of the death, the heirs can also file:

Caution

Prior to the appointment of a liquidator, make sure first that you do not wish to renounce the succession/estate, as the appointment of a liquidator is an act that may be deemed as an acceptance of the succession on your part.

Enquiring and searching for property of the deceased

You must perform various searches and audits with persons or companies with which the deceased was likely doing business. Different letters are available to enable you to obtain information that is useful and necessary for the preparation of the estate inventory. It is important to know that all of the deceased's insurable property must remain insured until their delivery to the heirs. The insurance company must also be promptly notified of the death of the insured person as well as of any changes in the risk covered by the issued policy. Should an insurance policy expire before such delivery, the Estate, through the liquidator or the heirs, as the case may be, should do the necessary to renew such policy.

Calculation of the partitionable value of the family patrimony upon a death

This calculation is used to determine the partitionable value of the family patrimony of married or civilly united spouses following the death of one of them, which will be useful only in the case where the surviving spouse is not the sole heir or universal legatee of the deceased.

Publication of the notice of appointment of the liquidator in the RDPRM

To disclose the identity of the liquidator to heirs and third parties.

Appointment of the liquidator

Allows heirs of the deceased to appoint a liquidator who will administer the estate assets.

Discharge by heirs to the liquidator

Document confirming that an heir accepts the settlement of the estate and releases the liquidator from his liability as estate administrator and liquidator.

Notice of closure of the inventory - text to be published in a local newspaper

You can draft a notice of closure of the estate inventory.

Publication of the notice of closure of the liquidator's account in the RDPRM

Publication of a notice regarding the liquidator's rendering of account to confirm the end of the estate administration by the liquidator.

Deceased person who left no descendant, married or civil union spouse, father, mother, brother, or sister behind, but left behind ordinary ascendants or ordinary collaterals.

The Civil Code of Quebec contains provisions governing the distribution of property of a person who died without a will, by first giving priority to the closest relatives of the deceased, then gradually including more distant relatives of the deceased. All these provisions are known as the legal devolution.

Rendering of account of the liquidator

Document used to determine the net assets to be distributed to heirs or to determine the liabilities of the estate after payment of creditors and legatees by particular title.

Deceased person whose father, mother, brother and/or sister are still alive.

The Civil Code of Quebec contains provisions governing the distribution of property of a person who died without a will, by first giving priority to the closest relatives of the deceased, then gradually including more distant relatives of the deceased. All these provisions are known as the legal devolution.

Minor heir or protected person of full age ?

If a minor or protected person of full age is an heir of property worth more than $ 25,000, theCivil Code of Quebecimpose on the estate liquidator the obligation to declare that fact to the Public Curator and state the value of the property.

Declaration of transmission for an immovable property

Notarized document that must be registered in order to transfer the ownership of an immovable/real estate property to the heirs.

Deceased person who did not leave descendants behind, but left behind a spouse to which he/she was married or civilly united.

The Civil Code of Quebec contains provisions governing the distribution of property of a person who died without a will, by first giving priority to the closest relatives of the deceased, then gradually including more distant relatives of the deceased. All these provisions are known as the legal devolution.

Minor heir or protected person of full age ?

If a minor or protected person of full age is an heir of property worth more than $ 25,000, theCivil Code of Quebecimpose on the estate liquidator the obligation to report this fact to the Public Curator.

Note: Unless otherwise provided by a testamentary provision, the office of liquidator devolves by operation of law to all the heirs, meaning that if no liquidator was appointed, all the heirs must act together as liquidator of the estate.

Declaration of transmission of movable property (bank account, certificate of deposit, etc.)

Document that establishes the transfer of the deceased's rights to his heirs.

Deceased person who left descendants behind (children or grandchildren).

The Civil Code of Quebec contains provisions governing the distribution of property of a person who died without a will, by first giving priority to the closest relatives of the deceased, then gradually including more distant relatives of the deceased. All these provisions are known as the legal devolution. 

Obtaining certificates authorizing the distribution of the estate assets

Obtaining the clearance certificate and the certificate authorizing the distribution of property ensures that the liquidator will not be liable for unpaid taxes of the deceased.

Claim for the amount payable under a life insurance policy or a pension plan

Submit the final documents to the insurance company or the pension/retirement plan administrator to obtain the payment of the amounts claimed by and due to the estate following the preliminary verifications with the insurance comapny or the plan administrator.

Application for the death benefit, surviving spouse's pension and orphan's pension at Retraite Québec

• The death benefit is a lump-sum payment and is intended to reimburse the paid funeral expenses of the deceased.
• The surviving spouse's pension is a monthly pension paid to the surviving spouse according to certain criteria.
• The orphan's pension can be paid to the child of the deceased who is under the age of 18 and was living with the deceased at the time of his death.

Note: Each of these benefits, however, are subject to a formal application with "Retraite Québec".

Cancellation of Social Insurance Number (SIN), licences, official cards and documents

This procedure protects the estate against identity theft and any fraudulent use.

Cancellation of the benefits from the Old Age Security (OAS) / Quebec Pension Plan (QPP)

Protects the estate against theft and fraud with respect to such payments.

Declaration of legal heirs

In the case of an intestate succession (an estate without a Will), this document is used to identify the heirs of the deceased.

Publication of an exemption from seizure clause in the RDPRM

If the Will contains a stipulation of unseizability or exemption from seizure clause, the recording of such a clause in the RDPRM protects heirs against a possible seizure.

Renunciation in favorem (in favour of)

Legal document allowing an heir to renounce the succession/estate in favour of one or more heirs.

Renunciation of a succession

Notarized document allowing an heir to renounce a succession/estate, particularly if the estate is in deficit

Note: A minor cannot renounce a succession.

Publication of the notice of closure of the inventory in the RDPRM

Such a procedure reveals the existence of the inventory to interested persons.

Estate inventory

Document that defines the assets and liabilities of the estate and allows the successors to determine whether the estate is solvent or not and to exercise their option. It is necessary to proceed with an inventory so that the heirs will not be liable for the payment of debts of the estate in excess of the value of the property they take.

Note: A liquidator is bound to make an inventory. The latter can be exempt from making an inventory only if all the heirs and successors agree to it.

Calculation of the partitionable value of acquests in the event of death

This calculation is used to determine the partitionable value of acquests following the death of one of the spouses married or civilly united under the regime of partnership of acquests and for the case where the surviving spouse would not be the sole heir or universal legatee of the deceased.

Obligation to file tax returns with the taxing authorities

• In the absence of a liquidator, the heirs, where applicable, must file themselves the tax returns for the taxation year in which the person died, both with the Quebec taxing authorities (Revenu Quebec) and the Canadian taxing authorities (Canada Revenue Agency).
• The taxation year is from January 1^st of the year of death, up to and including the date of death. However, if the death occured after October 31^st, the deadline to file a tax return is six months after the date of death.
• The heirs must also pay, where applicable, the taxes of the deceased within the time limit provided by law.

Calculation of the partitionable value of the family patrimony upon a death

This calculation is used to determine the partitionable value of the family patrimony of married or civilly united spouses following the death of one of them, which will be useful only in the case where the surviving spouse is not the sole heir or universal legatee of the deceased.

Obligation to file tax returns with the taxing authorities

• The liquidator of an estate must file, if any, the tax return for the taxation year in which the person died;
• The taxation year is from January 1^st of the year of death, up to and including the date of death. However, if the death occured after October 31^st, the deadline to file a return is six months after the date of death.
• The liquidator must also pay, where applicable, the taxes of the deceased within the time limit provided by law.

Publication of the notice of appointment of the liquidator in the RDPRM

Such a publication discloses the identity of the liquidator to heirs and third parties.

The rights and obligations of the liquidator

The liquidator:

Appointment of the liquidator

This process allows the heirs of the deceased to appoint a liquidator who will settle the estate.

Liquidation of a succession/estate

The liquidation of a testate or intestate succession consists of:

• first, paying off the debts of the estate, whether the deceased's debts, expenses of the estate or debts of support;
• secondly, paying the legacies by particular title; and finally
• distributing the property or the share to which each heir or universal legatee or legatee by general title is entitled.

Probate of the Will

Any holograph Will or Will made in the presence of witnesses is subject to a Court probate proceeding before being able to execute it.

Survival of the obligation to provide support

Every creditor of support (spouse, ex-spouse or descendant) may, within six months following the death, claim a financial contribution from the estate as a support.

Note: This right exists even if the creditor is an heir or legatee or the right to support has not been exercised prior to the date of death.

Marital status search and verification of the matrimonial regime

This step allows you to know under what matrimonial regime was the deceased married or, if applicable, to confirm whether or not there had been a legal separation or divorce.

Are the insurance policy benefits or the pension/retirement plan benefits included in the estate assets ?

• In the presence of a life insurance policy with a designated beneficiary, the insurance proceeds are not included in the estate assets and the designated beneficiary will directly receive the proceeds of such insurance policy.
• On the other hand, the proceeds of a life insurance policy that has no designated beneficiary or that is payable to the estate are included in the assets of the deceased's estate.

Mandatory Will Search

In Quebec, to proceed with the settlement of an estate, it is mandatory to obtain two Will search results, namely those issued by the "Chambre des Notaires du Québec" and the "Barreau du Québec" (Quebec Bar), in order to make sure to have the deceased's last Will on hand, if any.

Death certificate

The death certificate issued by the Registrar of Civil Status officially confirms and proves the death of a person. Obtaining this document is mandatory prior to the settlement of an estate.

The heirs' right of option

A successor has a period of six months to renounce the succession/estate, from the day he acquired this right.

Funeral expenses

The funeral expenses are usually borne by the estate. However, if the estate is insolvent, it is the person who signed the contract with the funeral complex who will be bound to pay the funeral expenses.

Funeral arrangements and mode of disposal of the deceased's body

Any person of full age (adult) may determine the nature of his funeral and the disposal of his body. It is best to check first in the personal effects of the deceased, in case he had already made prior arrangements or left written instructions to that effect.

In the absence of instructions or wishes expressed by the deceased, the wishes of his heirs or successors prevail. In both cases, the heirs and successors are bound to act.