How Long Before a Beneficiary Receives an Inheritance in NB

If you are a beneficiary, the wait can feel long. The law builds in steps that must happen before an estate is paid out, and some are outside the executor's control.

This article walks through those steps in order. It cannot give a typical number of months, because that depends on the estate, the family and the paperwork.

This article covers the law of New Brunswick.

Step one: getting authority to act

On death, the deceased's real and personal property vests in the personal representative, whether executor or administrator, despite any will. Banks and others usually want proof of that person's authority. Probate is not strictly mandatory, but it is recommended, especially when the estate includes real property.

Probate, or administration with the will annexed, is not granted until seven days have passed from the death. Where there is no will, a citation to accept or refuse administration cannot issue until fourteen days after death.

The application needs a sworn statement of the estate's total value, a copy of the death certificate and payment of the probate tax before letters issue. Gathering these documents is often the first practical delay.

Step two: debts, claims and fees

Assets are applied in a set order: funeral expenses, tax and probate fees, solicitors' costs, wage claims, personal representative liabilities, and then personal representative commission. Beneficiaries are paid from what is left.

If the personal representative disputes a claim, the claimant has 30 days to apply to the Court, or three months if the Court allows. Otherwise the claim is forever barred. Disputed claims can hold up the final distribution.

Step three: taxes and the clearance certificate

The final T1 return for a death from January 1 to October 31 is due April 30 of the following year. For a death from November 1 to December 31, it is due six months after the date of death. If the deceased or a spouse or common-law partner operated a business, the filing date is June 15 of the following year for a death from January 1 to December 15, but any balance owing is still due on the regular date.

An estate return (T3) is due 90 days after the trust's tax year-end, and a graduated rate estate can choose its first year-end up to one year after death.

The clearance certificate (Form TX19) is requested only after returns are filed, assessments received and amounts paid or secured. The CRA acknowledges the request within 45 days, and assessment can take up to 120 days. A representative who distributes without a clearance certificate is personally liable up to the value of assets distributed. For this reason many executors hold back some funds until it arrives.

What can add delay

• A caveat or contest of the will, which brings further court steps.
• A dependant's claim, because a judge may suspend administration of the estate. These claims must be made within four months of the death.
• A married spouse's application to divide marital property, also within four months of death.
• Assets or grants from elsewhere; a foreign grant may need to be sealed by the Probate Court once the required tax is paid.
• Land transfers, because a deed signed by a personal representative must be accompanied by the original will, letters probate or letters of administration.

Because of these claim windows, executors are often cautious about paying beneficiaries early.

What you can do as a beneficiary

• Ask the executor for a general outline of the steps and where things stand.
• Ask whether probate has been applied for and whether a clearance certificate is being sought.
• Understand that holdbacks for taxes and claims are normal.
• If you think the process is stalled, an interested person may ask the Court for a sworn inventory or for a citation requiring the executor to pass accounts.
• Speak to a lawyer if you suspect misconduct or unreasonable delay.

Frequently asked questions