Estate Administration Fillmore Riley LLP Anita L. Southall

Estate Administration  Personal representative for an estate  Duties of personal representatives

Personal Representative  The term “personal representative” is often used as a generic term for an executor or an administrator for the estate and is used in statutes affecting estates (The Trustee Act)  Probate is not always necessary

Executor  When a person dies leaving a Will, the executor/executrix named in the Will may have to probate (prove) the Will before proceeding to administer the estate.  If the Court is satisfied that the Will is valid, it will grant letters of probate authorizing the executor/executrix to settle the estate.

Administrator  When a person dies without a will or there is no executor/executrix willing or able to administer the estate, anyone may apply to the Court to administer the estate  The administrator must reside in Manitoba and may have to purchase a commercial bond to ensure the proper administration of the estate

Necessity of Probate  Probate is necessary when:  Real property (residence and/or land) and publicly traded securities are registered in the sole name of the deceased;  There is significant insurance payable to the estate;  Financial institutions require probate to pay out assets;  There are issues concerning the validity of the Will.

Necessity of Probate  Probate may not be necessary when the deceased’s assets:  Are located in a small bank account;  Consist of Canada Savings Bonds;  Consists of shares in a private corporation.

Duties of Personal Representatives  Funeral arrangements / expenses  Dealing with assets and debts  Dealing with taxes  Sending out notices relating to the estate  Addressing legal issues  Settling the accounts and fees charged to administer the estate  Distributing the estate

Funeral Arrangements / Expenses  The personal representative has the authority to pay reasonable funeral expenses from the estate. Expenses may include costs for funeral services, burial and headstone for the deceased.

Dealing with Assets and Debts  The personal representative must take into possession or control all assets of the deceased’s estate. All debts of the deceased must be paid and all debts owed to the estate are to be collected.  The personal representative may advertise for creditors to notify all creditors of the estate that the estate will pay lawful claims against it. Claims of creditors have priority over distribution rights of the beneficiaries.

Sending out Notices Relating to the Estate  The personal representative must give notice, in accordance with statutory guidelines, to a spouse or common-law partner of the deceased pursuant to The Family Property Act. This notice advises a spouse or common-law partner that they have 6 months to make a claim against the estate for an accounting and equalization of assets under Part IV of The Act.

Addressing Legal Issues  The personal representative must continue or bring legal actions on behalf of the estate and defend claims brought against the estate.  Legal proceedings may be brought against the estate by former spouses and common-law partners and dependents of the deceased in certain situations.

Settling the Accounts and Fees Charged to Administer the Estate  The personal representative must keep records of all funds collected or distributed from the estate. An accounting and administration report should be provided to the residuary beneficiaries along with administration fees and legal fees to be charged to the estate prior to distributing all of the estate funds.  If the residual beneficiaries do not approve the accounts provided and the fees to be charged and sign a release to the personal representative, the personal representative will be required to bring forward a court application to approve the estate accounts and fees.

Distributing the Estate  After all the assets of the estate are brought in and the debts and claims against the estate are settled, the remaining assets may be distributed to the beneficiaries.

Fillmore Riley LLP, Anita L. Southall