What happens to debts if someone dies without a will in Alberta?
This answer covers the law of Alberta.
Debts are dealt with before your family inherits anything. In Alberta, the net value of an intestate estate is worked out after debts, charges, and funeral and administration expenses are taken off. Whatever remains is then distributed under Part 3 of the Wills and Succession Act. An intestate estate means property that is not dealt with by a will. Part 3 applies to deaths on or after February 1, 2012.
Someone must be in charge of dealing with those debts. Once the court issues a grant, no person other than the personal representative it was issued to has authority to act for the estate. Without a will, the first in line to apply is a surviving spouse or adult interdependent partner, then a child, and so on down the list. The Estate Administration Act applies where the person lived in Alberta on the date of death or owned property in Alberta.
The order creditors are paid in, and whether a relative could be personally responsible for a debt, depend on the facts, such as whether the relative signed or co-signed the loan. Before paying bills or closing accounts from your own money, confirm the position with a lawyer.
Key takeaways
- Debts, charges, and funeral and administration expenses come off the estate before its net value is divided.
- Without a will, whatever remains is distributed under Part 3 of the Wills and Succession Act.
- Once a court grant issues, only the personal representative it was issued to has authority to act for the estate.
- Whether you could be personally responsible for a debt depends on the facts, such as co-signing, so confirm the position before paying from your own money.