Who is responsible for paying a deceased person's debts in an intestate estate in Ontario?

In an intestate estate, the court-appointed administrator is responsible for identifying and paying the deceased's outstanding debts before distributing anything to the heirs. This is a core duty of the role. Debts include outstanding mortgages (on property being sold or transferred), credit cards, income tax, and any other financial obligations owed at the time of death.

Heirs are generally not personally responsible for the deceased's debts simply because they are family members or beneficiaries. Their exposure is typically limited to assets they actually receive from the estate. However, if the administrator distributes assets to heirs before paying debts and creditors then come forward, the administrator can be personally liable for the shortfall.

If debts exceed the total value of the estate (an "insolvent estate"), creditors are paid in a priority order set by law and heirs receive nothing — or receive whatever is left after all creditors are paid in priority. It is always prudent for an administrator to obtain legal and accounting advice before making any distributions.