Insolvent estates, renunciation and declaration of heirs

Assessing the solvency of an estate

• What are the options when an estate is insolvent?
• How can you tell if an estate is solvent or insolvent?
• Should one renounce an inheritance if it is insolvent?
• What debts should be taken into account when determining whether an estate is insolvent?
• How can I find out all the debts of the deceased?
• Should taxes be factored in before determining whether an estate is solvent?

Inventory and protection of heirs

• Is an inventory important when an estate has more debts than assets?
• Can the liquidator be exempted from taking inventory of a deficit estate?

Liquidation and payment of debts

• What should the liquidator do when he finds that the estate is insolvent?
• In what order should the debts of an insolvent estate be paid?
• Can the liquidator choose which creditors will be paid?
• Can the liquidator pay creditors before the inventory is completed?
• What expenses can be paid before the estate inventory is completed?
• Are funeral expenses paid before other debts of the estate?
• What happens if the estate doesn't have enough money to pay all the creditors?
• Can a creditor be paid in full when other creditors cannot be paid?
• What should the liquidator do when a new debt is discovered before the end of the liquidation?

Distribution of assets and debts discovered late

• Can the heirs receive assets before the debts of the estate are paid?
• Can an heir be required to repay part of their inheritance to pay creditors?
• What should be done if a debt of the estate is discovered after the division of assets?

Liability of heirs for debts

• Is an heir required to personally pay the debts of the deceased?
• When several heirs accept an inheritance, how are the debts divided among them?
• Can a creditor of the deceased directly sue an heir?
• Under what circumstances may an heir have to pay the debts of the deceased in excess of the value of their inheritance?
• Can an heir be held responsible for a debt of the deceased that he was unaware of when accepting the inheritance?

Sale of goods and buildings

• Can the assets of an insolvent estate be sold to pay creditors?
• Can the liquidator sell a property from an insolvent estate to pay off debts?
• What happens if the mortgage debt exceeds the value of the deceased's property?
• Must all the assets of an insolvent estate be sold to pay the creditors?

Renunciation of an inheritance

• Can we renounce a succession?
• I want to renounce an inheritance. What actions should I avoid taking?
• Who must renounce an inheritance for it to be administered by the Minister of Revenue?
• Is there a time limit to renounce a succession?
• What are the effects of the renunciation to a succession?
• What are the effects of renouncing an inheritance?
• How to officially renounce an inheritance?
• Can one renounce an inheritance after having started to take care of the deceased's affairs?

Actions permitted when considering renouncing an inheritance

• What acts can be carried out by an heir who renounces a succession?
• What property can receive an heir who renounces a succession?
• Can the deceased's home be emptied if one wishes to renounce the inheritance?
• Can the deceased's assets be sold if one wishes to renounce the inheritance?
• Can one give away or dispose of the deceased's property when one wishes to renounce the inheritance?
• Is it possible to keep mementos of the deceased without accepting the inheritance?
• Can one accept a burial plot while renouncing the inheritance?
• Can funeral expenses be paid if one wishes to renounce the inheritance?
• Can funeral expenses be reimbursed by the estate if one waives them?
• Can one claim reimbursement from the estate for expenses one has paid, even if one waives them?

Life Insurance, TFSAs, and Death Benefits

• Can a life insurance policy be used to pay off the debts of an insolvent estate?
• Can one receive life insurance even if one renounces the inheritance?
• Can one receive funds from a TFSA when renouncing an inheritance?
• Can one receive sums or benefits related to death even if one renounces the inheritance?

Declaration of Heirs

• What is a declaration of heirs?
• In what situations can a declaration of heirs be useful?
• What are the advantages of a declaration of inheritance signed before a notary?
• What documents may be required to prepare a declaration of heirs?
• Does the declaration of heirs automatically confer the status of heir?
• Does the declaration of heirs replace a declaration of inheritance?
• Is a declaration of heirs always required?