Estate Trustee Delaying Payment? Beneficiary Options in Ontario

Waiting for an estate to be settled is hard, especially when the estate trustee does not return calls. You may not know whether the delay is ordinary or a sign of a problem.

This article explains why estates often take time, how to tell normal delay from neglect, and the steps you can take, from a letter to a court application.

Why estates take time

An estate trustee collects the estate assets, pays taxes and debts, and distributes the residue to those entitled. If the deceased owned real property or assets held by a financial institution, the estate normally has to be probated through a Certificate of Appointment of Estate Trustee. Each step takes time.

So a wait of many months is not automatically a sign of wrongdoing. What matters is whether the trustee is making progress and keeping you informed.

Signs the delay is a problem

• The trustee gives no information at all, or answers change from one conversation to the next
• No application for the certificate of appointment appears to have been made when one is needed
• Estate property is sitting unsold or unmanaged without explanation
• You hear that money has been spent or loaned without a clear reason
• The trustee will not give you an estimated timeline

None of these proves misconduct, but together they justify a firmer approach.

Your options, step by step

Most beneficiaries move through these steps in order. You may be able to stop at any point if the trustee responds.

• Ask politely by phone or email what has been done and what remains.
• Send a dated letter asking for a status update, a list of outstanding steps and an estimated timeline, with a reasonable deadline for a reply.
• Ask where the estate stands on tax returns and the CRA clearance certificate, which a legal representative should obtain before distributing estate property.
• Have a lawyer write to the trustee if the letter is ignored.
• If there is still no response, talk with a lawyer about whether a court application makes sense on your facts and what it would involve.

A court application is a serious step with its own forms, deadlines and costs risks, so a lawyer can confirm what is available on your facts. Where money held by trustees needs to be set aside, for example for a beneficiary who cannot be found, it may be paid into court by order of the court, and it is then subject to the court's order.

Protect your own position

If you may have a claim as a dependant, such as a spouse or child who relied on the deceased for support, watch the time. A dependant's support application generally cannot be made more than six months after the grant of probate or administration, though the court may allow a later application against any part of the estate still undistributed.

Also remember that the trustee is not always without defence. A court may relieve a trustee from personal liability for a breach of trust if the trustee acted honestly and reasonably and ought fairly to be excused. Complete records on your side, including every request you made and every reply, help show what actually happened.

Be cautious with anyone who contacts you offering to speed up an inheritance for a fee. Being asked to pay a fee to release an inheritance is a warning sign of fraud.

What to do next

Write down the date the person died, when the trustee was appointed (if you know) and each contact you have had since. Send a short, polite letter asking for an update and a timeline. If there is no reply, speak with a lawyer about your next step, bringing the will and your records.

Frequently asked questions