Handling the affairs of a loved one's estate can be a complex and overwhelming responsibility. As an estate trustee, you are entrusted with the important task of ensuring the smooth administration of the deceased's estate, adhering to the legal obligations and fulfilling the wishes of the deceased as expressed in their will. To read more on this, check out our last blog post on the Duties of an Estate Trustee.
To assist you in navigating this intricate process, this checklist serves as a comprehensive guide to the duties and responsibilities that fall upon an estate trustee in Ontario. By following this checklist, you can systematically manage the estate administration process, while ensuring compliance with the relevant laws and regulations governing estates in Ontario.
• Contact the funeral home to make arrangement for deceased to be transferred from place of death to funeral home. Check to see if pre-paid and pre-arranged funeral plans were made.
• Contact family members when death occurs. Confirm monument purchase and/or inscription if not already arranged. Monument purchase and/or inscription must be paid from the estate of the deceased if not pre-paid.
• Coordinate funeral service. Obtain several copies of the Funeral Director’s “Proof of Death” Certificates.
• If there is no Will, make enquiries by letter and phone to verify lack of Will. Gather information on family members and contact a lawyer to interpret who is entitled to receive under the Estate. The lawyer will advise those who may be entitled to apply for a Certificate of Appointment of Estate Trustee Without a Will. They will also notify the Public Guardian and Trustee if there is no next of kin in Ontario or if a minor is a beneficiary, if appropriate, and receive instructions regarding the preparation of the Application for Appointment.
• If there is a Will, locate the Last Will and Testament of the deceased. Call the lawyer who prepared the Will to obtain as many Notarial Copies of the Will as required by various financial institutions. Arrange for reading of the Will. Make beneficiaries aware of the status of the Will. Apply for probate, if necessary, and send the beneficiaries a Notice of Application for a Certificate of Appointment of Estate Trustee With a Will, and send application to the court for probate. Pay any applicable probate fees. An experienced Estate Lawyer can complete probate and contact all beneficiaries on your behalf.
• Take all necessary steps to protect and preserve the deceased’s assets. Locate all assets. Contact banks, update bank and trust company pass books. If the deceased was employed at the time of death, contact the employer to collect wages and any benefits due. Determine if the deceased is a beneficiary of an unfinished estate. If so, contact lawyer or estate trustee to deal with inheritance. Open an estate account if required.
• Locate all bank accounts of the deceased. Obtain information respecting amount payable on each. Notify the insurer of the death. Also monitor any investments of the deceased and when appropriate, keep these assets invested until the estate is distributed.
• Locate all insurance policies, annuities, etc., and obtain information respecting amount payable on each. Notify the insurer of death.
• Notify Government departments of death, i.e. Canada Pension Plan, Old Age, CPP, Survivor’s Benefit, to determine if estate is entitled to any benefits.
• Locate beneficiaries and prepare list of names, addresses, phone numbers, social insurance numbers, and dates of birth.
• List the contents of the deceased’s safety deposit box and ensure the assets. Make sure the contents are properly insured if appropriate.
• Completely review all personal papers of the deceased in order to locate all assets and debts.
• Contact creditors to determine amount of funds owed to companies, credit cards, etc. Prepare a detailed list of the deceased’s assets and debts. Pay all of the deceased’s debt. Arrange for Notice to Creditors to be prepared, sent to the newspaper, and paid for. If there are any creditors, receive proof of their claim, decide if claim is valid, if so, pay claim. If not, send Notice of Contestation to illegitimate creditors.
• Open an estate bank account and arrange for collection of future income. Deposit all cheques and pay all bills from the estate account. It may also be used to provide for the deceased’s immediate family’s financial needs if necessary.
• Cancel the deceased’s insurance, driver’s licence, credit cards, subscriptions, phone, heat, etc. There may be a possible refund on the driver’s licence.
• Arrange with post office for mail to be re-addressed if necessary.
• Obtain any instant cash required from banks, insurance companies, or employer.
• Transfer or cancel insurance on house, car, etc.
• File income tax return for year of death and any former years not yet filed by deceased. A trust return may be needed to cover the period from the date of death until the distribution of the Estate assets. Review and sign completed tax return, file same with Revenue Canada. Receive Notice of Assessment, prepare Request for Clearance Certificate, sign and submit it to Revenue Canada. Receive Final Clearance Certificate from Revenue Canada.
• Keep proper estate accounts. These should be typewritten in case they need to be passed before the court. Review and sign the Affidavit verifying the Estate accounts. Answer any questions the beneficiaries may have about the accounts. Prepare for Court hearing for Passing of Accounts and attend the hearing if necessary.
• Apply for civil service, union, and/or veteran’s benefits.
• Apply for the balance of any amounts payable under insurance policies.
• Sell any assets which must be sold or which the Trustee and Executor chooses to sell (if they have the power to do so).
• Ensure that RRSPs and/or RRIFs not designated to the estate are conveyed to the proper beneficiaries, and any tax consequences for the estate are considered and satisfied.
• Pay money bequests and distribute other property in accordance with instructions in the Will (being sure to retain sufficient cash to carry out the final steps).
• File the estate’s income tax returns and pay any tax owing. Issue any T-3 slips to the beneficiaries.
• Pay legal fees and any outstanding fees relating to the administration of the estate, including the Trustee and Executor’s compensation.
• Obtain releases from all beneficiaries or pass estate account before a judge of the Ontario Court. Make sure that you have obtained the Clearance Certificate.
• Distribute the balance of the estate assets to the rightful beneficiaries. Reimburse self for necessary expenditures, and for services as executor.
By following this checklist, you have gained valuable insights into the essential tasks involved in estate administration,
It is crucial to emphasize that estate administration can be a complex process, and circumstances may arise that require professional guidance or legal expertise. This checklist should serve as a starting point and a reference tool, but it is always recommended to consult with an experienced estate lawyer to ensure compliance with the specific laws and regulations applicable to your situation.
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