How Long Do Creditors Have to Claim Against an Estate in Alberta?

If you are the personal representative, you want to distribute the estate without a creditor appearing later. It is natural to ask how long creditors have to come forward and whether you can simply wait that long.

The short answer is that there is no single deadline you can count on. Limitation periods vary by type of claim, and they work alongside the formal notice process for creditors.

This article covers the law of Alberta.

The basic limitation periods

Under Alberta's Limitations Act, a claimant who does not seek a remedial order within 2 years after first knowing (or when they ought to have known) of the injury, that the defendant's conduct caused it, and that it warrants a proceeding, or within 10 years after the claim arose, whichever expires first, loses the claim. The defendant is then entitled to immunity from liability.

When a claim arises matters. A claim based on a demand obligation arises when a default in performance occurs after a demand is made. For the 10-year period, a claim based on a breach of duty arises when the conduct, act or omission occurs.

Exceptions that change the clock

• A creditor who already holds a judgment or order for the payment of money against the deceased has 10 years after the claim arose, not 2 years.
• For a claim brought against a personal representative as successor owner of a claim, the 2-year period runs from the earliest of three events: when the deceased owner knew or ought to have known (if more than 2 years before death), when the representative was appointed (if they then had the knowledge), or when the representative first acquired or ought to have acquired it after appointment.
• The general rule is expressly subject to other sections of the Act, so a lawyer should check whether a special rule applies to a particular debt.

Because the rules turn on what a creditor knew and when, it is often hard for you to say with confidence that a claim is out of time.

Notice to creditors is the protection that counts

When giving notice to claimants, the personal representative must follow the Surrogate Rules. The court forms are GA15 (Notice to Creditors and Claimants), GA16 (Statutory Declaration of Publication) and GA17 (Statutory Declaration by Creditors and Claimants), and the GA forms are for applications filed on or after June 15, 2022. Confirm the current notice steps and timing with a lawyer before relying on them.

You may require a claimant to verify the claim and state the value of any security held. You may also contest a claim in whole or part. If the claimant does not apply to court within 2 months after notice of the contest, the claim is barred. A claim not yet payable cannot be enforced without the court's permission.

Why waiting is not enough

Once the notice rules are complied with, you may distribute having regard only to the claims you have notice of at that time, and you are not liable for a claim you did not know of.

That protection has a limit. A claimant who was not notified can still pursue the person who received the distributed property, so beneficiaries can lose what they received, up to its value, if a valid claim surfaces later. Limitation periods do not fill the gap, because creditors with a longer or later-starting period can still pursue the people who received the property.

Taxes are a separate track. If you distribute without a CRA clearance certificate, you are personally liable for unpaid amounts, up to the value of the assets distributed. CRA says an assessment can take up to 120 days if all necessary documents are provided.

What to do next

• List every known debt, including funeral costs, which the estate is responsible for.
• Complete the notice-to-claimants steps under the Surrogate Rules before distributing.
• Keep a record of every claim, verification request and contest.
• Apply for a CRA clearance certificate before distributing.
• Ask a lawyer whether any claimant holds a judgment or a claim with a different time limit.

Frequently asked questions