Does a Saskatchewan Executor Have to Give Beneficiaries an Accounting?

If you are a beneficiary, waiting for an estate to be sorted out can feel like being kept in the dark. If you are the executor, you may worry about how much you have to show people and when. Both questions come down to one idea: an accounting.

An accounting is a record of what came into the estate, what was paid out and what is left. This article explains what Saskatchewan guidance says about when it is owed, what it usually covers, and what happens when beneficiaries do not accept the numbers.

This article covers the law of Saskatchewan.

Is an executor required to give an accounting?

Yes. Among the common duties the province lists for an executor is to account to the beneficiaries within two years. The Court of King's Bench says the same thing: the executor must account to beneficiaries within 2 years, or pass the accounts at the court house if they are disputed.

The province also lists ways an executor can close this step: obtaining releases from the beneficiaries, or obtaining a court order passing the accounts and distributing the estate. A release is a signed document in which a beneficiary accepts the accounting.

What an accounting usually includes

The details can vary with the estate, so a lawyer or accountant can confirm what is needed in yours. In general, an accounting follows the money through the steps an executor is expected to take. The province's list of duties gives a good outline:

• Identifying, locating, securing, valuing and insuring the assets.
• Claims for insurance, pension and death benefits.
• Payment of funeral bills.
• Deposits into an estate account.
• Payment of debts by priority.
• Tax returns and the CRA Final Clearance Certificate.

The executor's disbursements and out-of-pocket expenses are paid by the estate, and the court can review them. That is why keeping receipts and clear records matters for the executor, and why a beneficiary can reasonably ask to see them.

Why you may not receive money right away

A beneficiary who sees no payment is not always being ignored. Debts of the deceased are paid from the estate and must be paid before any gifts in the will go to beneficiaries. If the estate cannot cover everything, debts are paid in a set order of priority, and other unsecured debts are paid ratably if funds are insufficient.

Tax also affects timing. An executor who distributes assets before getting a CRA clearance certificate, when tax is still owing, can be held personally liable up to the value of the assets distributed. Final distribution cannot occur until the clearance certificate is received.

Distribution may also 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. The Court of King's Bench says the average estate takes about a year.

When beneficiaries and the executor disagree

If a beneficiary does not accept the accounts, the route the Court of King's Bench points to is passing the accounts at the court house. In plain terms, the executor's records go before the court for review. The detailed steps, forms and timing for starting that process depend on the facts, so a lawyer can confirm them before you file anything.

Where the estate may be insolvent, the province recommends consulting a lawyer and, if needed, applying to the court for directions. Disputes about who the beneficiaries are can also end up before the court: if beneficiaries cannot be found and an heir locator fails, the executor or administrator must apply to court for directions on paying out the funds.

Beneficiaries should also watch for separate deadlines. For example, under The Family Property Act, a surviving spouse's application for a family property order may not be commenced more than six months after the grant of probate or administration, and a spouse who signed a valid waiver cannot apply at all. Confirm any deadline with a lawyer early.

What to do next

Whichever side you are on, a calm, documented approach usually works best.

• Executors: keep every receipt, bank statement and invoice, and use a separate estate account.
• Executors: keep track of the two-year point for accounting to beneficiaries.
• Beneficiaries: ask the executor in writing for an update and for copies of the records.
• Beneficiaries: check whether a release you are asked to sign matches what you were told.
• Both: confirm the estate's tax position before any final distribution.
• If the accounts are disputed, get legal advice about passing the accounts at the court house.

Frequently asked questions