- A claim against a deceased person is not ended by death alone, and it can continue against the estate with the personal representative as the party.
- A personal representative can give written notice disputing a claim, and the claimant then generally has 180 days to start a proceeding if the claim is already due.
- Do not distribute estate assets in a hurry, because a legal representative who distributes property without a CRA clearance certificate while tax is owing is personally liable for the unpaid amounts, up to the value of the assets distributed.
As executor, you may receive a demand letter or a statement of claim addressed to the estate. It can feel urgent, but you have tools to assess the claim before you accept or reject it.
This article explains how claims continue after death, how to dispute one in writing, which time limits apply and when a beneficiary can step in. It is general information, and a lawyer can confirm how it applies to your claim.
This article covers the law of British Columbia.
Why the claim lands on you
A cause of action against a deceased person is not annulled by the death alone. A claim can continue against the estate, with the personal representative as the party. The representative has the authority the deceased would have had if living, and must use it to administer and distribute the estate and to account to beneficiaries and creditors.
A personal representative is liable for the deceased's wrongful acts or breaches only to the extent of the assets belonging to the estate, subject to the exceptions in that section. Personal liability of a representative arises mainly from their own acts, such as distributing improperly, and not from the debts themselves. Your role is to deal with the claim on the estate's behalf, and how this applies to you depends on your situation, so it is worth confirming with a lawyer.
Assessing the claim
Start by asking what is claimed, how the amount was worked out and what proof supports it. Compare it with the deceased's own records. A person applying for an estate grant must make a diligent search for the deceased's property and liabilities and make the required disclosures, so a careful list of debts is part of the job.
- Keep the demand letter or court documents and note the date you received them.
- Ask the creditor for the contract, invoices or statements behind the claim.
- Check whether the debt was already paid, was secured, or was owed jointly with someone else.
- Check whether the claim is out of time (see below).
- Do not admit the debt in writing until you have reviewed it.
Be careful about admissions. A written, signed acknowledgement of liability, or part payment of a liquidated sum, can restart the Limitation Act clock for a debt.
Disputing a claim in writing
WESA s. 146 lets a personal representative give written notice disputing a claim against the estate. The claimant must then start a proceeding within 180 days after notice is given if the claim is already due. If no proceeding is started in time, the claim is forever barred.
This bar does not apply to beneficial-interest claims by beneficiaries or intestate successors, or to wills variation claims. A wills variation claim under WESA s. 60 must be commenced within 180 days from the date the representation grant is issued in British Columbia, and it sits outside the creditor timeline.
Other time limits and who can act
| Time limit | What it says |
|---|---|
| Limitation Act, general | A claim must not be commenced more than 2 years after the day it is discovered |
| Limitation Act, ultimate | A claim must not be commenced more than 15 years after the day it arose, with listed extensions |
| WESA s. 146 dispute notice | 180 days to start a proceeding after notice, if the claim is due |
A claim is discovered on the first day the person knew or reasonably ought to have known that injury, loss or damage had occurred. The Limitation Act does not apply to a claim for which another enactment sets a limitation period, except as that enactment provides, so the WESA 180-day dispute period is separate from the 2-year and 15-year periods.
If you as personal representative will not act, a beneficiary or intestate successor may, with leave of the court, sue or defend on the estate's behalf. Leave requires reasonable efforts to get the personal representative to act, notice, good faith, and that the action is necessary or expedient for the estate or the applicant's interest.
What to do next
Before you hand out any part of the estate to beneficiaries, think about your own exposure. A personal representative must not distribute the estate within 210 days after the grant, except by court order. Earlier distribution within the 210 days is allowed with the consent of all beneficiaries and all persons who may bring a wills variation claim.
You may publish a notice to creditors in the Gazette, with a claims period of not less than 30 days from publication. After that period, you are not liable for claims not presented in time, although a creditor may still pursue those who received estate assets. Distributing without a CRA clearance certificate while tax is owing makes you personally liable up to the value of the assets distributed.
If you are served with a lawsuit, do not ignore it. Get legal advice promptly, because court deadlines can be short.
Frequently asked questions
Can a creditor sue an estate after the person has died?
Yes. A claim against a deceased person is not annulled by death alone, and it can continue against the estate with the personal representative as the party.
How long does a creditor have after I dispute the claim?
After written notice disputing a claim that is already due, the claimant must start a proceeding within 180 days. If they do not, the claim is forever barred.
Am I personally responsible for the claim as executor?
Your liability for the deceased's wrongful acts or breaches is limited to the assets belonging to the estate, subject to exceptions. You can create personal risk by distributing assets improperly, for example without a CRA clearance certificate while tax is owing.
Can a beneficiary challenge a claim if I do nothing?
A beneficiary may apply for leave of the court to sue or defend on the estate's behalf, after reasonable efforts to get the personal representative to act.
Sources
- WESA s. 142 (BC Laws) — bclaws.gov.bc.ca
- Limitation Act, SBC 2012, c. 13, ss. 6, 8 (BC Laws) — bclaws.gov.bc.ca
- CRA – Apply for a clearance certificate — canada.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a wills & estates question
A single will with us is from $894.88, tax included. Third-party fees are extra.