- In British Columbia, a personal representative generally must not distribute the estate within 210 days after the grant is issued unless the court orders otherwise.
- Early distribution is possible with the required consents, or by setting aside shares for people who cannot be located.
- Separately from the waiting period, a representative who distributes without a CRA clearance certificate is personally liable for the unpaid tax, up to the value of the property distributed.
You have your grant, the beneficiaries are asking when they will be paid, and you are not sure when you are allowed to hand anything over. In British Columbia, the timing is partly set by statute, and getting it wrong can leave you answering personally for the mistake.
This article explains the 210-day rule, the ways it can be shortened, and the other checks that matter before any money or property leaves the estate. It is general information, not advice on your particular estate.
This article covers the law of British Columbia.
The 210-day rule
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 point of the wait is to leave time for people with claims against the estate, or against the will, to come forward before the assets are gone.
You may sometimes hear of an "executor's year". That is a common-law convention about giving an estate time to settle, not a section of the statute. The binding rule you should plan around is the 210-day bar.
Exceptions that allow earlier distribution
The 210-day bar is not absolute. The law allows earlier distribution in set situations:
- Where there is a will, you may distribute earlier if all beneficiaries with an interest, and everyone who could bring a wills-variation claim, consent.
- Where there is no will, you may distribute 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 you set aside their gifts and shares, plus enough to cover possible variation claims.
The last route carries risk. If a loss results, you are liable unless you can show that all the required amounts were set aside. Because the group of possible wills-variation claimants can be hard to pin down, this is a good point to ask a lawyer.
Court consent when a dispute is under way
Passing 210 days does not always clear the way. Distribution needs court consent if a 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. If you know of a dispute, or one is threatened, pause and get advice before paying anyone.
Other checks before you pay beneficiaries
The 210 days is only one gate. Before distributing, you should also make sure debts are dealt with. Distributing while debts remain unpaid can make an executor personally liable for them.
- Pay valid debts. Listing assets and debts, paying valid debts, filing tax returns and distributing the estate are the basic executor duties.
- Consider a notice to creditors. You may publish a notice to creditors and other claimants in the Gazette with a deadline of at least 30 days.
- Watch disputed claims. If you give notice disputing a claim, 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.
If you are unsure how to handle a question about managing the estate, you can petition the court for its opinion, advice or direction without starting any other proceeding.
The CRA clearance certificate and personal liability
Before distributing property you control, a legal representative must obtain a clearance certificate from the Minister of National Revenue certifying that the deceased's amounts owing are paid or secured. A representative who distributes without one is personally liable for the unpaid tax, up to the value of the property distributed.
The CRA says to request the certificate on Form TX19 only after all returns are filed, notices of assessment are received and all amounts are paid or secured, not at the same time as filing the returns. If the deceased had a GST/HST number, Form GST352 is also needed. Processing times change, so check the CRA's current guidance.
What to do next
- Note the date the grant was issued and count 210 days from it.
- List known beneficiaries, intestate successors and possible wills-variation claimants, and note anyone you cannot locate.
- Check whether any court proceeding about the estate has started or is threatened.
- Pay valid debts and decide whether to publish a Gazette notice to creditors.
- File all returns, wait for assessments, then request the clearance certificate.
- Get a lawyer's or accountant's advice before any early distribution.
Frequently asked questions
Can I pay a beneficiary something small before 210 days?
The rule bars distribution within 210 days unless the court orders otherwise. Early payment is allowed only under an exception, such as consent from all the required people. Whether a particular payment counts as a distribution is worth confirming with a lawyer.
What if a beneficiary cannot be found?
You may still distribute early if you set aside that person's gift or share, plus enough to cover possible variation claims. If a loss results, you are liable unless you show all required amounts were set aside.
Is the executor's year the same as the 210 days?
No. The executor's year is a convention, not a statutory rule. The binding statutory bar is the 210 days after the grant is issued.
When do I apply for the clearance certificate?
Request it on Form TX19 only after all returns are filed, assessments are received and amounts are paid or secured. Distributing without it can make you personally liable for unpaid tax, up to the value distributed.
Sources
- Government of BC – After a death: wills and estates — www2.gov.bc.ca
- Wills, Estates and Succession Act, s. 154(2) — bclaws.gov.bc.ca
- Income Tax Act, RSC 1985, c. 1 (5th Supp.), s. 159(2) — Justice Laws (federal)
- Canada Revenue Agency – Apply for a clearance certificate — canada.ca
- Trustee Act, s. 86 — bclaws.gov.bc.ca
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
This is a wills & estates question
Ask our Team for a quote. We reply by email.