What Must an Executor's Estate Accounts Include in Alberta?

If you are the executor, or personal representative, of an Alberta estate, the beneficiaries will eventually want to know what came in, what went out and what is left. Preparing financial statements is how you answer that question in a structured way. Many people find it daunting because they are not sure what the statements should contain.

If you are a beneficiary, the same list tells you what a complete set of accounts should look like. This guide explains the required parts in plain words and how they connect to the records a representative keeps. It does not cover releases or objection steps.

This article covers the law of Alberta.

The duty to account

A personal representative must give an accounting of the administration of the estate at regular intervals. They do this by preparing financial statements of property and money received, property distributed and money paid out, and giving them to the beneficiaries. The Estate Administration Act also requires a representative to follow the Surrogate Rules on accounting.

The Surrogate Rules set a timetable for these regular accountings, and the court can order a longer or shorter period. Because the wording of that rule has other parts, confirm the exact timing with a lawyer before relying on it. The court may also require an accounting at any time, and an interested person may apply for an order requiring one.

There is an exception for some beneficiaries. A person who receives only a specific gift can obtain an accounting only for that gift, and a person who has already received that gift cannot apply for an accounting at any time under the court-order rule.

What the financial statements must contain

The Surrogate Rules list the parts the financial statements must include:

• An inventory at the beginning and at the end of the period being reported.
• Statements of receipts and distributions, noting whether each is capital or income.
• Expenses.
• A reconciliation.
• A distribution schedule.
• A proposed compensation schedule.

The court may also ask for more particulars, so it is wise to keep supporting detail ready.

Capital, income and format

Where the will or trust requires it, capital and income must be kept separate in the financial statements. If your will creates a trust, for example one that pays income to one person and capital to another, this separation matters. Check the will's wording and ask a lawyer if it is unclear.

There is no required layout. The statements may be combined or separate and may be in any format. A clear spreadsheet or a set of tidy schedules can work, as long as it includes every required part.

Records and proof of ownership

The core tasks of a personal representative are to identify the estate's assets and liabilities, administer and manage the estate, satisfy its debts and obligations, and distribute and account for the administration. The Schedule to the Act gives examples, including creating and maintaining records, regularly communicating with beneficiaries, and preparing financial statements, a proposed compensation schedule and a proposed final distribution schedule. The list is not exhaustive.

The Schedule also lists record-related tasks that a ledger and receipts should be able to show:

• Listing safe-deposit box contents.
• Valuing property and debts as of the date of death.
• Arranging payment of debts and expenses.
• Tax filings and payments.

Ownership of estate property is shown by documents such as certificates, bank or dealer letters, company letters and statements of account. For land, it is shown by a current certified copy of the certificate of title.

What to do next

Start keeping records from day one rather than rebuilding them later. A representative must apply the care, diligence and skill of a person of ordinary prudence, and must distribute the estate as soon as practicable. A representative who has professional-level skill and acts in a professional capacity must use that higher degree of skill instead. Good records are a practical way to show that.

• Open a separate estate account and keep every receipt and statement.
• Record the value of each asset and debt as of the date of death.
• Note whether each receipt or payment is capital or income.
• Track expenses and keep a running reconciliation.
• Keep ownership documents such as bank letters and a certified title copy for land.
• Share information with beneficiaries regularly.
• Ask a lawyer or accountant for help if the estate is complex or a trust is involved.

A representative can also apply to the court for advice or direction on a question. If you are unsure what your statements should include, a lawyer can confirm it for your estate.

Frequently asked questions