Estate administration in Alberta involves the legal process of managing and distributing a deceased person's estate, ensuring their wishes are honoured or, in the absence of a will, that assets are distributed according to Alberta’s intestacy laws. This process can be complex and emotionally overwhelming, especially for executors and trustees who are tasked with significant legal and financial responsibilities.
At Joyce Sawchuk Law, we provide compassionate and expert support to guide executors through every step of estate administration. Our services include assisting with probate applications, managing and distributing assets, settling debts and taxes, and resolving any disputes that may arise among beneficiaries. We offer clear, step-by-step instructions to help executors and trustees fulfil their duties efficiently and in full compliance with Alberta’s legal requirements. With our professional guidance, you can navigate the estate administration process with confidence, knowing that the estate is being handled with care and precision.
Estate Administration
Key Steps in Estate Administration:
Estate administration in Alberta is the legal process of managing and distributing a deceased person’s estate in accordance with their will or, in the absence of a will, Alberta’s intestacy laws. The process involves several critical steps to ensure the estate is handled efficiently and lawfully. Below is an overview of the key stages in estate administration:
Probate:
-
Purpose: Probate is the legal process of validating a will and granting the executor authority to manage the estate. If no will exists, probate is used to appoint an administrator.
-
Applying for Probate: The executor (named in the will) or an interested party (if there is no will) files an application with the Court of King’s Bench to obtain a grant of probate or letters of administration. This requires submitting the will (if one exists), a list of assets and liabilities, and other necessary documents.
-
Grant of Probate: This court order confirms the validity of the will and authorizes the executor to administer the estate.
Appointing a Personal Representative (Executor) or Administrator:
-
Personal Representative: The individual named in the will who is responsible for managing the estate and carrying out the instructions outlined in the will.
-
Administrator: If no will exists, the court appoints an administrator to manage the estate according to Alberta’s intestacy laws. This person is usually a close family member of the deceased.
Inventory and Valuation:
-
Identifying Assets: The executor or administrator must identify and compile an inventory of all the deceased’s assets, such as real estate, bank accounts, investments, and personal property.
-
Valuing Assets: An appraisal is conducted to determine the value of the estate's assets, which is necessary for distribution and tax purposes.
Paying Debts and Taxes:
-
Settling Debts: The estate is responsible for paying any outstanding debts, including bills, loans, and other financial obligations.
-
Tax Returns: The executor or administrator must file the deceased’s final income tax return and settle any taxes owed. This may also involve paying estate administration taxes.
Distributing Assets:
-
Following the Will: If a valid will exists, the executor distributes the assets in accordance with the deceased’s instructions.
-
Intestate Distribution: If there is no will, assets are distributed according to Alberta’s intestacy laws, which outline the order of inheritance among surviving relatives.
Handling Disputes:
-
Resolving Conflicts: Executors or administrators may need to address and resolve disputes among beneficiaries or other parties involved in the estate. Legal assistance may be required to navigate these challenges.
Closing the Estate:
-
Finalizing Accounts: Once debts, taxes, and administrative expenses are settled, and assets have been distributed, the executor or administrator prepares a final accounting of the estate’s administration.
-
Discharge: To officially close the estate, the executor or administrator may seek court approval, providing a final report and requesting a discharge from their duties.
Legal Framework:
Estate Administration Act: This act outlines the procedures for estate administration in Alberta, including the responsibilities of executors and administrators, as well as the process for applying for probate.