Is an inventory important when an estate has more debts than assets?

Yes . An inventory is particularly important an estate appears to be insolvent or when its solvency is .

The inventory allows, in particular, for the establishment of the and debts that make up the estate and provides a precise picture of its financial situation. It thus helps the executor and the determine if the assets will be sufficient to pay the and other obligations of the estate. When an estate has debts, the inventory allows, in particular, for verification of:

• the assets that are part of the estate and their value;
• the sums due to the estate;
• the debts and other obligations of the deceased;
• the known creditors;
• the other elements likely to have an impact on the solvency of the estate.

The inventory also plays a role for the heirs. The Civil Code of Québec provides for consequences when they exempt the liquidator from preparing an inventory they know or should know that the estate is insolvent. In particular, they may in certain circumstances, be held liable for debts the value of the assets they inherit.

When the assets of the estate appear to pay all the debts, it is therefore important to respect the rules relating to inventory and liquidation proceeding with the payment of creditors or the distribution of assets to heirs.