How Long Does a Beneficiary Wait for an Inheritance in Manitoba?

Waiting for an inheritance is hard, especially when you are also grieving. Many beneficiaries expect a payment within weeks and are surprised when nothing arrives.

The delay is rarely random. An estate has to be set up, debts and tax dealt with, and certain people given notice before the person in charge can safely pay anyone. How long this takes depends on the size and complexity of the estate and whether anyone objects, so a lawyer can give a realistic estimate for your situation.

This article covers the law of Manitoba.

The usual steps before you are paid

In general, an estate moves through the same stages, though the order and length vary.

• Find the will and confirm who is named to act, or who may apply to act if there is no will.
• Obtain death certificates; Manitoba Vital Statistics issues them at $30.00 each, and regular orders start processing only once the death is fully registered.
• Obtain a grant of probate or letters of administration where one is needed.
• Collect the assets, pay the funeral costs, debts and taxes.
• Distribute what is left to the beneficiaries.

Estate assets must cover debts before will beneficiaries inherit.

If there is no will, The Intestate Succession Act decides who inherits. A surviving spouse or common-law partner takes the entire estate if the deceased left no surviving descendants (issue), or if all of the deceased's descendants are also the survivor's descendants. The exception is a spouse or common-law partner who was separated from the deceased and meets the separation conditions in the Act, such as a divorce or property application made during the separation or a division of their property; that survivor is treated as having died first and takes nothing under the Act. Where some of the descendants are not also the survivor's, the survivor takes the greater of $50,000 or one-half of the estate, plus one-half of any remainder, and the rest goes to the issue.

Built-in waiting periods

Some delays come from the rules themselves, not from slow paperwork.

The representative must not distribute until the survivor consents in writing, the time to apply has expired without an application, or an application has been decided. Distributing against this makes the representative personally liable for the survivor's loss.

Tax timing also matters. For a death between January 1 and October 31, the final return is filed and any tax paid by April 30 of the following year; for a death between November 1 and December 31, it is due within 6 months of the date of death. If the deceased or their spouse or common-law partner was running a business, the filing date is June 15 of the following year for deaths from January 1 to December 15, while the payment deadline stays the same.

Common causes of delay

• A survivor's claim under The Family Property Act, which applies to married spouses and common-law partners alike.
• Disputes among family members, or no one willing and able to act.
• Missing or unclear paperwork, or a will that cannot be found.
• Assets that are hard to value or sell, such as a business or property.
• Late discovery of new assets, which can allow a court to extend the survivor's six-month period.
• Tax filings that are not yet complete.

When the Public Guardian and Trustee gets involved

The Public Guardian and Trustee describes itself as an administrator of last resort, acting only when no one else is willing, capable and appropriate. The court may appoint it on its application if the deceased left property in Manitoba and no grant has been issued here. Unless the court orders otherwise, that application cannot be made until 120 days after death if there is a will, or 30 days if there is none.

The Public Guardian and Trustee is not required to accept an appointment just because it has the power to, unless a court orders it.

If a grant has gone to the Public Guardian and Trustee, the court may revoke it and issue it to another eligible person. The applicant must serve the Public Guardian and Trustee at least 10 days before the hearing.

What you can do as a beneficiary

• Ask the executor or administrator, politely and in writing, where the estate stands.
• Keep your own contact details current so notices reach you.
• Do not pressure the representative to pay early; distributing before a surviving spouse or partner has consented, the time to apply has expired, or an application is decided can make them personally liable for the survivor's loss.
• If you cannot reach anyone, you can call the Public Guardian and Trustee's Estates Department, which does not charge for this.
• See a lawyer if you suspect a problem or think you are being left out.

Frequently asked questions