What Estate Records Must an Alberta Personal Representative Keep?

Being named a personal representative (often called an executor) means you are handling money and property that belongs to other people. Sooner or later, someone may ask you to show what came in, what went out and why.

The best answer is a set of clear records kept from the first week. This article walks through what Alberta law expects, what a practical record system looks like, and when the records get tested.

This article covers the law of Alberta.

Why record-keeping is part of the job

Alberta law lists four core tasks for a personal representative: identify the estate's assets and liabilities, administer and manage the estate, satisfy its debts and obligations, and distribute and account for the administration of the estate. The Schedule to the Estate Administration Act gives examples of core tasks, and the first one named is creating and maintaining records. The list is not exhaustive.

You are also expected to act honestly and in good faith, with the care, diligence and skill of a person of ordinary prudence. If you have professional-level skill and act in a professional capacity, a higher degree of skill is expected. Good records are the easiest way to show you met that standard.

What your records should be able to show

The Schedule lists record-related tasks. Your ledger and receipts need to be able to show each of these:

• The contents of any safe-deposit box, listed.
• The value of property and debts as of the date of death.
• Arrangements to pay debts and expenses.
• Tax filings and payments.

The Schedule also mentions regular communication with beneficiaries about the administration and management of the estate, and preparing financial statements, a proposed compensation schedule and a proposed final distribution schedule. Keep copies of what you send and when.

A practical record-keeping checklist

• A running ledger of every dollar received and every dollar paid out, with dates and reasons.
• Receipts and invoices for each expense, filed in date order.
• Date-of-death valuations for property and a list of debts.
• Proof of ownership for estate property, such as certificates, bank or dealer letters, company letters and statements of account, and for land a current certified copy of the certificate of title.
• A list of safe-deposit box contents.
• Tax returns, filings and payment confirmations.
• Copies of notices and letters sent to beneficiaries or creditors.
• A separate estate bank account so estate money is not mixed with your own.

A representative who distributes after considering only the claims they have notice of at that time is not liable for claims they did not know about on the distribution date. Records of the notice you gave to claimants therefore help protect you.

How your records become financial statements

You must give an accounting at regular intervals, by preparing financial statements of property and money received, property distributed and money paid out, and giving them to the beneficiaries. Each accounting covers a period, so keeping your ledger current from the start means the statements can be prepared when they are needed. Because the exact timing can depend on your situation, it is worth confirming with a lawyer. The court may also require, and an interested person may apply for, an accounting at any time.

The statements must include an inventory at the beginning and end of the period, statements of receipts and distributions, expenses, a reconciliation, a distribution schedule and a proposed compensation schedule. The court may ask for more particulars. They may be combined or separate and in any format, but where the will or trust requires it, capital and income must be kept separate.

What to do next

Start the ledger now, even if the estate is small. Keep paper and digital copies, and do not throw anything out until the estate is fully finished and approved. If a court examines your accounts, you and anyone holding estate records must make them available and cooperate.

If you are unsure what a particular receipt or entry should look like, or you face a dispute, speak with a lawyer or accountant. You can also apply to the court for advice or direction on a question, and acting on that direction generally discharges your duty on that subject, except in cases of fraud, wilful concealment or misrepresentation.

Frequently asked questions