What Happens When a Beneficiary Can't Be Found in Alberta?

You have been named to administer an estate, or you are waiting on one, and a person who is meant to receive a share cannot be found. The rest of the estate may be ready to distribute, but one share is stuck. That leaves the personal representative unsure what is safe to do.

This article explains the general tools Alberta law gives a personal representative in that position, and what happens to the missing person's share. Every estate is different, so a lawyer can confirm the right path for yours.

This article covers the law of Alberta.

The duties that do not pause

A personal representative must act honestly and in good faith, follow the will, and distribute the estate as soon as practicable. The core tasks include identifying assets and liabilities, administering the estate, paying debts, and distributing and accounting for the estate.

A missing beneficiary does not cancel those duties. It does mean the representative should not simply guess, hold everything indefinitely, or hand the share to someone else. The law provides court-supervised routes for this situation.

There is also a built-in wait. A representative must not distribute any part of the estate to a beneficiary until 6 months after the grant, unless all family members consent or the Court authorizes it. Before the 6 months end, the representative may make reasonable advances for the maintenance of family members who are beneficiaries. A representative who distributes early is personally liable for any maintenance and support that should have come out of the amount distributed.

Serving the Public Trustee

Where a missing person is interested in an estate, the applicant must serve the Public Trustee with notice of the application. This is a step in the court process, so it usually comes up when a grant or another application is being made.

Separately, if a minor is a beneficiary, the Public Trustee must review the grant application. A beneficiary who is a minor is a different situation from a missing adult, so it is worth telling your lawyer which one applies.

Court tools for the representative

The Trustee Act gives a trustee several options. They are not interchangeable, and which one fits depends on the facts.

The distribution order is worth reading carefully. It lets the representative distribute with court backing, but a creditor or other claimant can still follow the property.

What happens to the missing person's share

When accounts are formally passed, the court may direct that money owed to a minor or missing person be paid to the Public Trustee or another trustee.

If funds remain in an estate the Public Trustee administers and beneficiaries cannot be located, the funds eventually go to Alberta's provincial treasurer. Beneficiaries who turn up later can still claim their share.

If no individual is entitled to an intestate estate at all, a different statute applies, and a person's right to claim under Part 6 of that Act is preserved. How that works in practice is a question for a lawyer.

Personal risk and relief for the representative

If a 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. The Court can also relieve a trustee wholly or partly from personal liability for a breach of trust if the trustee acted honestly and reasonably and ought fairly to be excused.

That relief is discretionary, so it is not something to count on. Taking a documented, court-supported route is generally safer than relying on an excuse afterward.

What to do next

• Keep a written record of every effort you have made to reach the beneficiary.
• Talk to a lawyer before distributing the missing person's share to anyone else, since how to handle it depends on your situation.
• Confirm the 6-month wait after the grant has passed before distributing other shares, unless the Court or all family members allow otherwise, and keep in mind that reasonable advances for the maintenance of family members who are beneficiaries are allowed before then.
• Ask a lawyer whether directions, a distribution order, or payment into court suits your estate.
• Keep estate accounts current, since you must account for the estate in any case.

Frequently asked questions