Disputing an Executor's Accounts as a Beneficiary in Saskatchewan

You are a beneficiary and something about the executor's reporting does not sit right. Maybe the numbers are unclear, expenses seem high, or you have heard very little for months. Before deciding what to do, it helps to know what an executor is expected to do, what is normal, and what the formal options are.

This article explains accounting in a Saskatchewan estate, how a dispute can be taken to court, and why some waiting is lawful. It does not cover attacking the will itself, how much an executor may be paid, or removing an executor. Those questions depend heavily on the facts and are worth raising with a lawyer.

This article covers the law of Saskatchewan.

What an executor must account for

Among the executor's common duties, the province lists identifying, locating, securing, valuing and insuring assets, paying funeral bills, depositing estate money in an estate account, paying debts by priority, and accounting to beneficiaries within two years. In plain words, an account is a record of what came in, what went out, and what is left.

The executor must account to beneficiaries within two years, or pass the accounts at the court house if they are disputed. So a request for an explanation is not unreasonable, and there is a formal route if explaining does not resolve things.

Steps to take before going to court

Most disagreements start as questions. A calm, written request often clears up a misunderstanding or shows what the real problem is.

• Ask the executor in writing for a summary of assets, debts, expenses and payments so far.
• Ask for supporting records, such as bank statements and receipts, for items you do not understand.
• Note dates, amounts and what the executor tells you in response.
• Do not sign a release until you are satisfied with the accounts.
• Speak to a lawyer if answers are vague, late or refused.

Keep in mind that the executor may be waiting on things outside their control, which the next sections explain.

Passing accounts and the two ways an estate closes

If the accounts are disputed, they can be passed at the court house. That means a court reviews them rather than the executor and beneficiaries simply trusting or disagreeing with each other.

The province lists two ways to close an estate: obtaining beneficiary releases, or a court order passing the accounts and distributing the estate.

Expenses, fees and what the court can review

The executor's disbursements and out-of-pocket expenses are paid by the estate, and the court can review them. If you question an expense, passing accounts is the setting where that review can happen.

Costs of administration, including executor fees, rank ahead of many other debts when an estate is insolvent. Debts of the deceased are paid from the estate and must be paid before gifts in the will go to beneficiaries. So a smaller share than you expected is not automatically a sign of wrongdoing. Whether a particular fee or expense is reasonable depends on the facts.

Why distribution can be lawfully delayed

Distribution may be delayed six months after Letters are obtained where a dependant may claim under The Dependants' Relief Act, 1996 or a spouse may apply for division of family property. Final distribution cannot occur until the CRA clearance certificate is received.

There is a reason for the caution. If a legal representative distributes assets before getting the certificate and tax is still owing, they can be held personally liable up to the value of the assets distributed. The certificate is requested only after returns are filed, notices of assessment received and tax paid, and assessment can take up to 120 days. The Court of King's Bench says the average estate takes about a year.

Where there are hard questions, such as an insolvent estate, the province recommends consulting a lawyer and, if needed, applying to the court for directions. If beneficiaries cannot be found and an heir locator fails, the executor must apply to court for directions on paying out the funds.

What to do next

• Put your questions to the executor in writing and keep copies.
• Compare the timing to the points above before assuming a delay is improper.
• Hold off on signing any release until the accounts make sense to you.
• Gather the will, any account summaries and your correspondence.
• Speak with a lawyer about whether to ask for passing of accounts at the court house.

Frequently asked questions