How an Executor Finds Unknown Assets of the Deceased in Ontario

Many executors discover that the person who died did not leave a tidy list. There may be an old bank account, a workplace pension, a small investment or a refund nobody mentions. You are expected to find what you reasonably can, and to be able to show what you did.

This article walks through how to search in a sensible order, what counts as estate property, and how tax steps help you uncover assets and protect yourself. It explains how things generally work in Ontario. Your situation may differ, so a lawyer can confirm the details.

First, know what counts as part of the estate

Before you hunt, it helps to know what you are hunting for. The deceased's property, other than property passing by survivorship, vests in the personal representative as trustee, subject to payment of the deceased's debts.

Property held with a right of survivorship, such as a home owned as joint tenants, does not vest in the executor. It passes to the survivor and is not part of the estate the executor sells. Other assets may also pass directly to a named person rather than through the estate, depending on how they were held, so each asset is worth checking with the institution or a lawyer.

The search also affects whether probate is needed. If the deceased owned real property or assets held by a financial institution, the estate normally must be probated, although Ontario's official page notes that probate is not always required.

Where to look first

Start with the paper and digital trail the person left behind. Most missing assets show up as a clue somewhere in their ordinary life.

• Incoming mail for the first several months, including statements, tax slips and notices
• Recent income tax returns and notices of assessment, which often list interest, dividends and pension income
• Bank and credit union statements, cancelled cheques and passbooks
• Email accounts and online banking, used carefully and only as far as your authority allows
• Safe deposit box keys, storage unit keys or rental agreements
• Property tax bills, insurance policies and vehicle ownership papers
• Address books, calendars and filing cabinets for names of advisors, accountants or brokers

If you find a financial advisor or accountant, call them. They can often point to accounts you would not otherwise know about. What a bank or other institution will release before probate depends on its own policies, so expect to be asked for documents and to be told different things by different institutions.

Pensions, insurance and forgotten property

Pension income on a tax return usually points to a plan that may still owe something, such as a survivor benefit or a final payment. Contact the plan administrator, give notice of the death and ask what is payable and to whom. The same approach works for employers, who may owe final wages or have group benefits.

For insurance, look for policy documents, premium payments in bank statements and letters from insurers. Ask each insurer whether a policy existed and whether a beneficiary was named, since that affects whether the money goes to the estate or directly to a person.

Do not forget the deceased's rights against others. An executor or administrator may sue for torts done to the deceased's person or property, and the limitation period is two years from the date of death. If you suspect the person was owed money because of a wrong done to them, speak to a lawyer promptly.

If the deceased rented a home, the landlord must preserve the tenant's property, other than unsafe or unhygienic items, until the tenancy ends and give the executor, administrator or a family member reasonable access to remove it. If there are no other tenants, the tenancy is deemed terminated 30 days after the death. If the estate makes a claim within six months of death, the landlord must pay over net sale proceeds or return retained property.

Use the tax process to catch what you missed

As legal representative, you must file all required returns for the deceased, make sure any balance owing is paid before distributing the estate, and confirm that all balances owing to the CRA are resolved. Preparing those returns forces a review of income sources, which is a good cross-check on your asset list.

• The final T1 return is due April 30 of the following year for a death from January 1 to October 31, and six months after death for a death from November 1 to December 31.
• If the deceased or their spouse or common-law partner living with them was running a business on the date of death, the deadline moves to June 15 of the following year for deaths from January 1 to December 15, but payment is still due on the regular date.
• An estate T3 return must be filed within 90 days after the trust's tax year-end, and any balance owing is due in the same 90 days.
• A trust must file if its total income is more than $500, or if it makes a capital distribution to beneficiaries even at $500 or less.

Income that arrives after death, such as interest on an account you found late, may need to be reported, so keep track of it. A clearance certificate confirms that the estate has paid all amounts of income tax. If you distribute assets without one and tax is owing, you are personally liable for the unpaid amounts, up to the value of the assets distributed. If the deceased had a GST/HST number, a separate Form GST352 is also needed.

Record what you find and what to do next

Estate trustees must keep accurate records of the estate's assets and transactions. Accounts filed with the court must include assets at the date of death, all money received, all liabilities and a statement of the compensation claimed. A beneficiary can bring a motion requiring you to file a statement of the nature and value of the estate's assets, and such motions may generally be made without notice. A written log of every search step protects you.

Once you have a certificate of appointment, you must file an Estate Information Return within 180 calendar days. Try to complete your search before then, so the return reflects what you found.

• Make a master list of assets and debts, with date-of-death values
• Note each institution you contacted, the date and the answer
• Gather tax returns and plan the final T1 and any T3 filings
• Hold off on distributing until the search and tax steps are finished
• Ask a lawyer or accountant about any asset whose ownership is unclear

Frequently asked questions