When a debt claimed from the estate is disputed or uncertain, the executor must neither pay it automatically nor dismiss it without verification. They must first examine the merits of the claim and determine, to the extent possible, the nature and amount of the obligation that might be owed.
To this end, it may be necessary to check, in particular:
A claim can also be difficult to assess when it depends on a future event, is the subject of a dispute, or its final amount has not yet been established.
In such a situation, the executor must take this claim into account when administering and settling the estate. In particular, it may be necessary to retain sufficient funds to meet any potential obligations, rather than prematurely distributing the assets to the heirs.
When the estate is solvent and certain debts are the subject of legal proceedings, the Civil Code of Quebec provides that a provision must be made to allow for their eventual payment.
When the solvency of the estate is not evident, the liquidator must also comply with the time limits and conditions provided by law before proceeding with the payment of debts, subject to applicable exceptions.
If the estate's assets are insufficient to pay all debts and specific bequests, the liquidator must follow the specific procedure provided for in the Civil Code of Quebec , including having a payment proposal approved by the court, which may include a provision to pay any eventual judgment.
The mere fact that a debt is claimed does not mean that it must be paid immediately. Conversely, the fact that it is disputed or uncertain does not allow the liquidator to ignore it without having carried out the necessary checks.