How Long Until a Beneficiary Gets Paid From an Estate in Ontario?

Waiting for an inheritance is hard, especially when you do not know what is happening behind the scenes. Many beneficiaries expect a quick cheque and are surprised when months pass with little news.

This article explains why payment from an Ontario estate often takes time, what the estate trustee has to do first, and which situations can slow things further. It is general information, not advice on your estate.

Why there is no fixed payout date

When someone dies, their property passes to their estate trustee, who holds it for the people entitled to it, subject to the deceased's debts. As a beneficiary, you do not control the property, and the estate trustee, not you, has authority to sell it.

Because the estate trustee must deal with debts, tax and any claims before handing property over, the timing depends on the facts of each estate. A simple estate with cash and no disputes will usually move faster than one with real estate, business interests or a family disagreement. A lawyer can tell you what is realistic for your estate.

Steps that can slow a distribution

A dependant support application generally must be made within six months after letters probate or letters of administration are granted. The court may still allow a later application against the part of the estate that has not been distributed. This is one reason careful estate trustees are cautious about distributing early.

Money that may not go through the estate

Not everything you receive after a death comes from the estate. Where a beneficiary is designated on a life insurance policy, the insurance money is generally not part of the insured's estate, but it is added back to the net estate when a court sets dependant support, so a support order can reach it. A person who has a plan such as an RRSP, RRIF or pension may also name someone to receive the benefit on death.

If no living beneficiary or estate is named, the insurance money becomes part of the estate and is dealt with under the will or intestacy rules together with estate debts. Contact the insurer or plan administrator directly to learn how to claim.

Situations that can add delay

• A beneficiary under 18: the Office of the Children's Lawyer must be served when an estate trustee applies for a certificate of appointment and a beneficiary is under 18.
• If no trustee is named, a child's share over $35,000 is paid into court and managed by the Accountant of the Superior Court of Justice until the child turns 18, although under a will a child is paid at the age the will states.
• A beneficiary who cannot be found: the estate trustee may apply to the Superior Court of Justice for direction, and advertising for creditors does not protect a trustee who distributes without a missing beneficiary's share.
• A beneficiary outside Canada: estate or trust income paid or credited to a non-resident is generally subject to Part XIII tax at 25%, which a tax treaty may reduce.
• A beneficiary on ODSP: an inheritance must be reported and is generally treated as income in the month received.

What to do while you wait

• Ask the estate trustee, politely and in writing, for a status update and what is still outstanding.
• Keep your contact details current so the estate trustee can reach you.
• If you receive ODSP, report the expected inheritance and get advice before the money arrives.
• Keep a record of every request and reply.
• If answers stop or the delay seems unreasonable, speak with a lawyer about your options.

Frequently asked questions