Is an executor personally liable for estate debts in New Brunswick?
This answer covers the law of New Brunswick.
Yes, an executor can be personally responsible in some situations, and the risk usually comes from how you handle the estate rather than from the existence of debts alone. The clearest example is tax: a representative who distributes assets without a clearance certificate can be held personally liable for tax owing, up to the value of the assets distributed. The Probate Court may also order a personal representative to pay damages where misconduct or neglect caused a loss.
Estate debts are paid from estate assets in a set order, starting with funeral expenses, then Act tax and probate fees, then solicitors' costs. If you doubt a claim, you can contest it by written notice; the claimant then has 30 days to apply to the Court, or three months if the Court allows, otherwise the claim is barred.
To protect yourself, keep clear records, wait for the clearance certificate before distributing, and consider having your accounts passed, because court-approved accounts bind notified interested persons unless mistake or fraud is shown. A lawyer or accountant can confirm how this applies to your estate.
Key takeaways
- A representative who distributes assets without a clearance certificate can be held personally liable for tax owing.
- The Probate Court may order a personal representative to pay damages where misconduct or neglect caused a loss.
- Estate debts are paid from estate assets in a set order, beginning with funeral expenses.
- Court-approved accounts bind notified interested persons unless mistake or fraud is shown, so passing accounts can add protection.