Should a Beneficiary Sign an Executor's Release in Alberta?

You have been told you are getting your final share of an estate, and the executor has handed you a release to sign. It is natural to wonder whether you have to sign, what you are giving up and whether you should ask questions first.

This article explains what the release is for under the Alberta Surrogate Rules, what you can ask to see before deciding, and what options exist if the numbers do not add up. It does not say what a signed release legally prevents, because that depends on the wording and the facts and is worth confirming with a lawyer.

This article covers the law of Alberta.

What the release is and why executors ask for it

When a personal representative (the executor or administrator) presents accounts to the residuary beneficiaries, the Surrogate Rules allow them to obtain releases in Form ACC 12. The releases do not need to be filed with the court. In practice the release is a document the executor keeps with the estate records.

Executors have their own reasons to want closure. A personal representative generally must not distribute any part of the estate until 6 months after the grant, unless all family members consent or the Court authorizes it. One who distributes early is personally liable for any maintenance and support that should have come out of the amount distributed. The Canada Revenue Agency also says the representative should apply for a clearance certificate before distributing, and one who distributes without it can be held personally liable for outstanding tax.

So a request for a release is common and not a sign of bad faith. It is still a document you should understand before you sign.

What to ask for before you sign

A personal representative must account at regular intervals by preparing financial statements of property and money received, property distributed and money paid out, and giving them to the beneficiaries. Unless the court orders otherwise, the accounting is due every 2 years after the date of death. If you are being asked to sign a release, you can reasonably ask to see these statements first.

• Financial statements showing property and money received, money paid out and property distributed.
• The compensation Part of Schedule 1 to the Surrogate Rules, if the accounts show a fee for the executor.
• An explanation of how debts, taxes and the estate's expenses were handled.
• Whether a CRA clearance certificate has been applied for or received.
• Your own proposed share, with the calculation showing how it was reached.

Personal representatives may receive fair and reasonable compensation. When an accounting shows compensation, the representative must give the beneficiary a copy of the compensation Part of the Schedule. If a fee appears and you have not received that Part, ask for it.

If the accounts look wrong

You do not have to accept the first set of numbers. A person interested in the estate may apply to the court at any time for an order requiring the personal representative to account. A person interested in the estate may also apply for an order requiring the formal passing of accounts, using Forms ACC 6 and ACC 7. A personal representative may apply for a formal passing too.

Raising questions with the executor in writing is usually the first step, and many concerns are settled that way. If they are not, these court options exist.

Silence on a passing of accounts has consequences

If accounts are formally passed, pay attention to the notice. A person who neither appears nor files a notice of objection on a passing of accounts is deemed to have consented to the administration of the estate as recorded in the financial statements. Ignoring the notice is therefore not a neutral choice.

There are also limits for some beneficiaries. A beneficiary of only a specific gift is entitled to an accounting only for that gift. A beneficiary who has already received that gift cannot apply for an accounting order under r. 97(3). If you are left a specific item or sum rather than a share of the residue, your rights to the full accounts are narrower.

What to do next

There is no rule in the material here telling you how long you have to challenge an executor after signing a release, and a release is not described there as having any particular legal effect. For that reason, treat signing as a decision to make once your questions are answered, not a formality.

• Ask in writing for the financial statements and, if a fee is claimed, the compensation Part of Schedule 1.
• Read the release carefully and ask what exactly it covers.
• Check whether you are a residuary beneficiary or only a specific-gift beneficiary.
• Keep copies of everything you receive and everything you send.
• Speak with a lawyer before signing if the amounts are large, the accounts are unclear or you are in dispute with the executor.

Frequently asked questions