What Is the Executor's Year in British Columbia?

If you are an executor, someone has probably told you to wait a year before handing anything out. If you are a beneficiary, you may be wondering why nothing has arrived. The phrase people use is the "executor's year".

In British Columbia the phrase is a rule of thumb rather than a statute. This article explains what the convention is trying to protect, what the law actually says about timing, and when distribution can happen earlier.

This article covers the law of British Columbia.

What the executor's year is, and what it is not

The executor's year is a common convention that an executor should take about a year to gather assets, pay debts, deal with taxes and only then distribute. It is not a section of the Wills, Estates and Succession Act (WESA), so it is not a deadline or a guaranteed waiting period.

The year is useful as a planning guide because the work really does take time. Before anything is handed out, the executor has to list assets and debts, pay valid debts, file tax returns and then distribute. Applying for the grant itself involves a diligent search for the deceased's property and liabilities.

The rule that does bind: 210 days

The statutory rule is in WESA section 155. A personal representative must not distribute the estate within 210 days after the grant of probate or administration is issued, unless the court orders otherwise. The clock runs from the date the grant is issued, not from the date of death.

This period exists so that people with claims against the estate have time to come forward, including those who may bring a wills-variation claim. The bar applies unless the court orders otherwise, and the exceptions in the next section set out when earlier distribution is possible.

When distribution can happen sooner

The 210-day bar has exceptions. These are the main ones:

• Where there is a will, the estate may be distributed earlier if all beneficiaries with an interest and everyone who could bring a wills-variation claim consent.
• Where there is no will, the estate may be distributed earlier if all intestate successors entitled to a share consent.
• If some beneficiaries cannot be located, early distribution can go ahead without their consent if the personal representative sets aside their gifts or shares, plus enough to cover variation claims.
• If a loss results from an early distribution of this kind, the representative is liable unless they can show all the required amounts were set aside.

Early distribution is a decision with consequences, so it is worth getting advice before relying on any of these exceptions.

Why waiting can still be needed after 210 days

Passing the 210-day mark does not mean the estate is free to distribute. If a court proceeding is under way about someone's status as a beneficiary or intestate successor, a wills-variation claim, or anything else that may affect the distribution, court consent is needed.

Taxes and debts are the other reason. Before distributing property they control, a legal representative must obtain a clearance certificate from the Minister of National Revenue. A representative who distributes without one is personally liable for the unpaid tax, up to the value of what was distributed. The CRA asks that Form TX19 be requested only after all returns are filed, assessments are received and amounts are paid or secured, and not at the same time as the returns are filed. If the deceased had a GST/HST number, Form GST352 is also needed.

Debts carry similar risk: BC government guidance warns that an executor who distributes while debts remain unpaid may be held personally liable for them.

Practical steps for executors and beneficiaries

A personal representative may publish a notice to creditors and other claimants in the Gazette, setting a deadline of at least 30 days. If the representative disputes a claim and gives notice, the claimant must start a court proceeding within 180 days after the notice, or after the claim falls due if it was not yet due.

• Note the date the grant was issued and calculate the 210 days.
• List all assets and debts and keep records of every payment.
• Consider publishing a notice to creditors.
• File all tax returns and wait for the notices of assessment.
• Request the clearance certificate before any final distribution.
• Get written consents from all required people if you want to distribute early.
• If you are a beneficiary, ask the executor for a progress update and an estimated timeline.

If an executor and beneficiaries disagree about timing, a lawyer can explain the options for your particular estate.

Frequently asked questions