Interactive legal guides>An interactive online guide to assisting an executor or heirs step-by-step in the settlement or liquidation of an estate.
An interactive online guide to assisting an executor or heirs step-by-step in the settlement or liquidation of an estate.
Has a loved one passed away? Are you the liquidator or heir? Don't know how to go about settling or liquidating their estate? We can help.
Scripta Legal offers you more than just an estate kit.
a personalized, interactive online guide to estate settlement or liquidation.
estate settlement. You can plan and follow
steps involved in liquidating or settling an estate.
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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:
an application for an indemnity with the Ministry of Energy and Natural Resources if the deceased was the victim of a hunting accident;
a claim for death benefits with the "Société d'Assurance Automobile du Québec" (SAAQ) if the deceased was the victim of a road accident;
a claim or an application for compensation with the "Commission des normes, de l'équité, de la santé et de la sécurité du travail" (CNESST) if the deceased was the victim of a work accident, an occupational disease or a criminal act or if he died as a result of an act of good citizenship.
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.
If a de facto spouse/common-law partner dies without a will, his spouse does not legally inherit even if they have been living together for more than one year.
On the other hand, certain laws such as the Automobile Insurance Act, the Act respecting the Québec Pension Plan and taxation laws recognize the rights of surviving common-law partners in the event of death.
The heirs are liable for the deceased's debts in excess of the value of property they take
If they exempt the liquidator from making an inventory of the estate.
If they mingle property of the estate with their own property.
If they neglect to make an inventory of the estate when the liquidator refuses or neglects to do so.
If they liquidate the estate without making an inventory and without the consent of all the heirs.
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.
Document confirming that an heir accepts the settlement of the estate and releases the liquidator from his liability as estate administrator and 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.
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.
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.
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.
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.
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.
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.
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.
Legal document allowing an heir to renounce the succession/estate in favour of one or more heirs. When you renounce in favour of another heir, this act is considered as an acceptance.
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 1st of the year of death, up to and including the date of death. However, if the death occured after October 31st, 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 1st of the year of death, up to and including the date of death. However, if the death occured after October 31st, 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.
acts with respect to the property of the estate as an administrator of the property of others charged with simple administration (such powers can be extended by the testator);
administers the estate;
realizes property of the estate to the extent necessary to pay the debts and legacies by particular title;
distributes the residue of the estate to the heirs;
is subject to strict rules under the Civil Code of Quebec.
Appointment of the liquidator
This process allows the heirs of the deceased to appoint a liquidator who will settle the estate.
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.
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.
A successor has a period of six months to renounce the succession/estate, from the day he or she acquires this right. This period is extended by 60 days from the date on which the estate inventory is made, if such inventory was made within six months from the death.
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.