How Long Does It Take to Receive an Inheritance in Alberta?

Beneficiaries often ask when the money will arrive. The honest answer is that it depends on the estate. Some are simple, and others involve property, tax filings, creditors or family disputes that take longer.

This article walks through the steps that commonly affect timing in Alberta and explains when a delay may be a legitimate wait and when you may be able to challenge it. It does not promise any processing time, because those depend on the estate and the court.

This article covers the law of Alberta.

The usual stages

A personal representative's core tasks are identifying assets and liabilities, administering the estate, satisfying debts, and distributing and accounting for the estate. Each stage takes time, and the representative must act as soon as practicable.

Where a grant is issued, the applicant must serve a notice of grant (Form GA7) within 30 days after the grant is issued. A named personal representative who acts without a grant must give each beneficiary a notice describing the gift and stating that gifts are subject to prior payment of the deceased's debts.

Waiting periods built into the law

A representative who distributes early is personally liable for any maintenance and support that should have come out of the amount distributed. Once notice of a maintenance and support application is given, the representative must not distribute except in accordance with the court's order. This is why careful representatives wait.

The fixed points described above are the 6 months after the grant for dependant claims and the creditor notice steps. How long a particular estate takes beyond that depends on its facts. Other time limits can also apply depending on the estate, so it is worth confirming with a lawyer which ones affect you.

Tax and the clearance certificate

The legal representative should apply for a CRA clearance certificate before distributing estate property. A representative who distributes without one can be held personally liable for outstanding tax owing. Many representatives hold back until it arrives.

• If death occurred January 1 to October 31, the final return is due April 30 of the following year. If death occurred November 1 to December 31, it is due 6 months after the date of death.
• If the deceased or their spouse or common-law partner carried on a business, the deadline 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 earlier payment date.
• The legal representative must also file T3 Trust Income Tax and Information Returns when required. Income the estate earns after death is reported on that return.
• Tax on gains deemed to arise at death is generally paid by the estate as part of the final return, not by the beneficiary. The exception is property transferred to a spouse or common-law partner who was a Canadian resident at death: the deemed disposition is deferred if the property is locked in for the spouse or partner within 36 months after death, and the legal representative can elect out of this rollover property by property.

Common causes of delay

• A minor child or beneficiary: the Public Trustee must be served on a grant application where the deceased is survived by a minor child, and the application must not proceed until the Public Trustee is represented or has said it will not be.
• A missing beneficiary: the applicant must serve the Public Trustee with notice of the application.
• A maintenance and support application, which freezes distribution except as the court orders.
• Assets that are hard to value or sell, or tax matters still open. How long these take depends on the estate.

When delay becomes a problem and what to do

A wait for the 6-month period, creditor notices or a clearance certificate is usually explainable. Silence, or no steps being taken, is different. If a personal representative fails to give a required notice or perform a duty, the Court may order compliance, impose conditions, remove the representative, or revoke the grant. A person interested in the estate may also apply for an order requiring the representative to account at any time. However, a beneficiary of only a specific gift is entitled to an accounting only for that gift, and a beneficiary who has already received that gift cannot apply for this order.

• Ask the representative in writing where the estate stands and what is outstanding.
• Ask whether a clearance certificate has been requested.
• Note the date of the grant and count 6 months from it.
• Keep a record of your requests and the responses.
• If nothing moves, speak with a lawyer about compliance or accounting applications.

Frequently asked questions