An interactive online guide to assisting an executor or heirs step-by-step in the settlement or liquidation of an estate.

Life insurance to check

It's important to check whether the deceased held one or more life insurance policies. Contact each insurance company to declare the death and obtain the forms forms required to file a claim.

• Personal insurance: Term, permanent, universal life, joint insurance or accidental death protection.
• Employment-related insurance  : Group life insurance, accidental death and dismemberment (AD&D) insurance, pension plan coverage or insurance from a former employer.
• Association insurance : Insurance offered by a professional order, union, trade association or other grouping.
• Insurance related to financial products: Protection attached to a personal loan, line of credit, car loan or savings product.
• Mortgage insurance: Protection linked to a residential or commercial mortgage.
• Insurance associated with cards or accounts : Insurance attached to a credit card, bank account or membership program.
• Trip insurance : Protection included in an airline ticket, travel package or car rental.
• Other possible coverage : Military insurance, veterans' insurance or coverage obtained through a third party.

To know: if you don't know if insurance exists, check bank statements, old pay stubs, e-mails or documents from the financial advisor.

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.

What every liquidator needs to know

• Legal obligations: Meet deadlines, complete essential procedures and file required declarations.
• Financial integrity: Avoid any confusion between assets and take no personal advantage.
• Payment of debts: Refrain from distributing assets prior to full payment of debts and charges.
• Careful management: Protect, maintain and administer property with diligence and prudence.
• Transparency and fairness: Keep clear records, communicate with heirs and act without bias.

In the absence of a will, a word of caution is in order

Before proceeding with the declaration of legal heirs and/or the appointment of a liquidator, certain precautions should be taken:

• First make sure you don't want to renounce the estate, as signing such documents can be interpreted as an implicit acceptance of the estate.
• Prepare an inventaire successoral beforehand, so that you know the composition of the deceased's assets.

In the absence of a designated liquidator

The heirs collectively exercise the powers necessary to carry out the main administrative tasks, namely:

• Open an estate bank account to receive funds, pay debts and distribute assets.
• Close the deceased's personal accounts and transfer the balances to the estate account.
• Carry out financial transactions (payment of funeral expenses, debts, taxes, etc.) from the estate account.
• Maintain the protection of assets by informing insurers and adding the name of the liquidator to the policies.
• Stop regular payments and subscriptions to service providers (energy, telephone, subscriptions).
• Inform the relevant organizations of the death (governments, financial institutions, pension plans, etc.).

Administrative tasks of the liquidator

The liquidator should:

• Open an estate bank account to receive funds, pay debts and distribute assets.
• Close the deceased's personal accounts and transfer the balances to the estate account.
• Carry out financial transactions (payment of funeral expenses, debts, taxes, etc.) from the estate account.
• Maintain the protection of assets by informing insurers and adding the name of the liquidator to the policies.
• Stop regular payments and subscriptions to service providers (energy, telephone, subscriptions).
• Inform the relevant organizations of the death (governments, financial institutions, pension plans, etc.).

• When a person dies without having left a will, financial institutions require an official document confirming the identity of the legal heirs, in accordance with the Civil Code of Quebec.
• This document, called declaration of legal heirs (or declaration of heredity), does not have to be notarized, but is generally required in the form of a notarized deed by financial institutions.

Transfer of shares owned by an estate to a corporation

Simplify the transfer of shares held by a deceased person to his or her heirs or estate within a corporation, with our comprehensive kit designed to meet your legal needs and ensure compliance with estate and corporate procedures.

Declaration of legal heirs (of inheritance)

• The declaration of legal heirs is required when a person dies without leaving a will.
• It establishes the official list of heirs in accordance with the provisions of the Civil Code of Québec.
• This document is generally prepared in the form of a notarized deed, to ensure its validity and authenticity.

2 If a person dies as a result of:

• hunting accident;
• automobile accident;
• work accident or occupational disease;
• criminal act;
• civic act.

Depending on the particular circumstances of the death, the heirs may also make a :

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 will need to make various enquiries of people or companies with whom the deceased was likely to have done business. 
• Maintain in force the insurance taken out on the insurable property of the deceased and do so until such time as the heirs have been made whole. 
• The insurer must also be notified as soon as possible of the death of its insured, as well as of any change in the risk covered by the policy it has issued.
• In the event of the expiry of an insurance policy prior to its surrender, the Estate, through the liquidator or, as the case may be, the heirs, shall do what is necessary to renew such policy.
• Several letters are available to help you obtain the information you need to draw up an estate inventory.

A de facto spouse/common-law partner

• If a person dies without leaving a will, his or her de facto spouse excluding a spouse in a parental union, does not inherit, even if they have been living together for more than a year.
• On the other hand, certain laws such as the Automobile Insurance Act, the Act respecting the Québec Pension Plan and tax laws recognize rights to surviving de facto spouses in the event of death.

The heirs are liable for the deceased's debts in excess of the value of property they take

• When they dispense the liquidator from making the inventory.
• When they confuse the property of the succession with their personal property without proceeding with the inventory.
• When they neglect to make the inventory while the liquidator refuses or neglects to do so.
• When they proceed with the liquidation of the estate without an inventory and without the agreement of all the heirs.
• When they neglect to publish the notice closing inventory in a local newspaper and in the RDPRM .

To remember: The inventory protects heirs against debts exceeding the value of the property received. Without an inventory, they become personally liable for the deceased's debts.

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

This calculation is used to establish the divisible value of the family patrimony of married or civil union spouses or those in parental union following the death of one of them, and is useful only if 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

• This publication makes the identity of the liquidator known to the heirs and third parties.
• Officially confirms that the liquidator is authorized to act on behalf of the estate to manage, liquidate and distribute the deceased's assets.

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.

Check out the tables allowing to determine the heirs of a person who died without a will.

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.

Check out the tables allowing to determine the heirs of a person who died without a will.

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

• The declaration of real estate transmission identifies the liquidator and establishes the rights of the heirs, in any real estate held by the deceased.
• This declaration takes the form of a notarial deed and must be published in the land register.
• Allows the transfer of ownership of the real estate belonging  to THE DECEASED PERSON to be registered in the name of the heirs.
• Depending on the signing of this document, the real estate covered by such a declaration will then either be retained by the estate with the aim of reselling it or passed on to the heirs for conservation.

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.

Check out the tables allowing to determine the heirs of a person who died without a will.

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 establishing thetransmission of property rights, on movable property, belonging to a deceased person, for the benefit of his heirs or legatees.

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

• TheCivil Code of Québec sets out the rules applicable to the distribution of the property of a person who dies without a will.
• These rules, called legal devolution, establish an order of priority among heirs by first favoring the deceased's closest relatives, then, failing that, more distant relatives.

The deceased having left descendants (children and grandchildren).

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 one-off payment intended to reimburse the deceased's funeral expenses .
• The surviving spouse's pension is a monthly pension paid to the surviving spouse according to certain criteria.
• The orphan's pension may be paid to a child of the deceased who is under 18 and living with the deceased at the time of death.

Note: A formal application must be made to Retraite Québec for each of these benefits.

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

This formality is designed to protect the estate against identity theft, fraud and unauthorized use of the deceased's personal information.

Cancellation of Canada Old Age Security and Quebec Pension Plan benefits

• Payment of hisAnnuity Plan and Old Age Security pension ends the month following the retiree's death.
• If any payments were made after this date, they will have to be repaid to the government.

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 favour of the other heir(s)

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.

Renunciation of a succession

• According to the Civil Code of Québec, any heir who wishes to renounce his or her rights in a succession has a period of 6 months following a person's death to do so.
• This declaration must take the form of a notarial deed, simply made to refuse to inherit from the deceased or because the estate is in deficit.

Note: A minor cannot renounce an estate.

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

• This formality makes the existence of the inventory known to interested persons. 
• The complete inventory is not disclosed, the notice informs heirs and creditors that an inventory has been made and where it can be consulted.

Estate inventory

• Document defining the assets and liabilities of the estate and enabling the successibles to determine whether or not the estate is solvent and to exercise their option.
• An inventory is necessary to ensure that the heirs are not liable for the estate's debts beyond the value of the assets they receive.

Note: A liquidator is required to draw up an inventory. The liquidator can only be dispensed with if all the heirs and successors agree.

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 must file their own income tax returns for the taxation year in which the deceased died, with both the Quebec and Canadian governments. The tax year begins on January 1 and ends on the date of death. However, if the death occurs after October 31, the deadline is extended to six months after the death.

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

This calculation is used to establish the divisible value of the family patrimony of married or civil union spouses or those in parental union following the death of one of them, and is useful only if 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

• This publication makes the identity of the liquidator known to the heirs and third parties.
• Officially confirms that the liquidator is authorized to act on behalf of the estate to manage, liquidate and distribute the deceased's assets.

The rights and obligations of the liquidator

Appointment of the liquidator

This process allows heirs to appoint a liquidator.

• The Civil Code of Quebec gives the heirs the right to designate the liquidator responsible for administering the successional patrimony.
• The designation must be made by a majority of the heirs entitled to the succession.

Liquidation of a succession/estate

The liquidation of a succession with or without a will, involves settling all the deceased's assets, debts and obligations before handing over the property to the heirs.

It involves the following main steps:

• Verifying the existence of a will and identifying the heirs or legatees.
• Drawing up an inventory of the deceased's property, debts s and income. 
• Pay the debts of the estate, including  taxes, estate charges and, if applicable, alimony debts.
• Remit the particular legacies provided for in the will.
• Distribute the remaining assets among the heirs or universal legatees, according to the will or the provisions of the Civil Code of Québec.

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.

For more information on the type of Will that should be probated, visit our FAQ section

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, before settling an estate, it is mandatory to obtain two will searches:

• A search with the Chambre des notaires du Québec ;
• A search with the Barreau du Québec.

These searches verify the existence of the deceased's last will, if one exists, and avoid any errors in the settlement of the estate.

Death certificate

• The certificate of death, issued by the Director of Civil Status, constitutes the only official proof of the death of a person and is necessary to initiate the settlement of the estate.
• The declaration of death, on the other hand, issued by the funeral director and signed jointly with a family representative,has only administrative value and does not constitute sufficient legal proof of death.

The heirs' right of option

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.

For more information, visit our FAQ section

Funeral expenses

• Funeral expenses are the responsibility of the estate. 
• On the other hand, if the estate is insolvent, the person who signed the contract with the funeral complex will be required to pay the funeral expenses.

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

• Anyone over the age of majority can arrange their own funeral and the manner in which their body is disposed of. It is preferable to check in the deceased's personal effects whether he or she had already entered into prior arrangements or left written instructions to this effect.
• In the absence of indications expressed by the deceased, we defer to the will of his or her heirs or successibles. In either case, the heirs or successibles are obliged to act.