Can an Alberta Executor Ask the Court for Directions Before Distributing an Estate?
This answer covers the law of Alberta.
Yes. Under the Trustee Act, an executor, acting as a trustee, can apply to the court for directions on any matter or question of fact, law or discretion, and a trustee who follows the directions is discharged from the duty on that matter.
An executor can also apply for an order authorizing distribution among the people entitled, though that order does not prejudice a creditor's or claimant's right to follow the trust property. An executor can also pay money or securities into court, and the court clerk's receipt releases the depositor from further obligations on those assets. If an executor breached a trust but acted honestly and reasonably and ought fairly to be excused, the court may relieve them wholly or partly from personal liability.
These tools sit alongside limits. The executor cannot distribute until 6 months after the grant unless all family members consent or the Court authorizes it, though reasonable maintenance advances to family members who are beneficiaries are allowed, and distributing early makes the executor personally liable for maintenance and support owed from it. Once notice of a maintenance and support application is given, distribution must follow the court's order. Whether directions fit your situation depends on the facts, so a lawyer can confirm.
Key takeaways
- Under the Trustee Act, an executor can ask the court for directions on any matter of fact, law or discretion, and following them discharges the executor on that matter.
- A court order authorizing distribution does not stop a creditor or claimant from following the trust property.
- Distributing before 6 months after the grant, without all family members' consent or the Court's authority, can make an executor personally liable.
- A person interested in the estate may apply for an accounting, but a beneficiary of only a specific gift who has already received it cannot apply.