When Must an Executor Pay Beneficiaries in Nova Scotia?

Waiting for an inheritance is hard, especially when you cannot see what the executor is doing. Many beneficiaries ask the same thing: how long can the executor lawfully take before paying out?

In Nova Scotia the answer is not one date. It is a series of steps, and some of them exist to protect the executor and the creditors. This article walks through them in order and explains what you can do if things stall. Rules and forms can change, so it is worth confirming the current versions with the Probate Court registrar or a lawyer.

This article covers the law of Nova Scotia.

Step one: notice of the grant within 30 days

Once the Probate Court issues a grant, the personal representative (the executor, or administrator if there is no executor) has formal duties. Within 30 days after the grant is issued, they must serve a notice of the grant on each person who is or may be entitled to share in the estate. The notice uses Forms 24 to 27.

Proof that the notice was served (Form 28) is due within 60 days, and the registrar may extend these times. If you are a beneficiary and have heard nothing, this is the first sign to look for. Receiving the notice does not mean payment is due. It simply tells you the estate is open.

Step two: the six-month advertisement for creditors

Advertising in the Royal Gazette is a statutory requirement for every estate opened in Nova Scotia, and the advertisement runs six months, after which the estate can move to distribution. Creditors file a Notice of Claim (Form 32) within that period and serve a copy on the personal representative.

This is the main reason most executors cannot pay beneficiaries right away. If no claim is filed, or assets enough to cover filed claims are kept back, no action lies against the representative for paying debts and distributing. Paying out earlier risks personal liability for unpaid claims.

There is an exception. A representative who distributes to people whose claim or address they had no notice of is not liable for those proceeds, and a creditor who misses the advertising period may claim only with the court's prior consent.

Step three: 12 months from the grant, and accounts by 18 months

After 12 months from the grant, or a longer time if the court allows, claims that have been presented must be paid and distribution made. That is the closest the law comes to a general timeline for paying beneficiaries. It is not a guarantee that every estate can finish in a year, because a longer time can be allowed by the court.

Separately, the personal representative must apply to pass accounts within 18 months of the grant unless the court orders a longer period. The application is also needed when seeking a discharge, or when the court orders it.

If you think the executor is taking too long

Start by asking the executor for an update in writing. A personal representative must keep accurate records of all property and debts of the estate, so there should be something to report. Delay can have good reasons, such as a creditor claim, land that has not sold, or a dispute.

If that does not help, the passing of accounts is the formal tool. The court can require it, and the process gives beneficiaries a voice. A passing uses Form 39 (with a hearing) or Form 40 (without), and the hearing date is not less than 45 days from receipt of the application. The representative's affidavit (Form 43) must be filed not less than 10 days before the passing date.

If you object to the accounts, you file a Notice of Objection (Form 42) and serve it at least 10 days before the passing date. Without one you are treated as consenting. The court can require amendments, set the commission and appoint an accountant. Contested matters go to a judge.

Before you sign a release or consent

Accounting can be dispensed with. This is done through a personal representative's affidavit that accounting is not required (Form 37), a consent (Form 38), and a release from beneficiaries (Form 36). Signing these can mean giving up the chance to review the accounts.

Commission is another point to understand. The court sets the personal representative's commission, which may not exceed five percent of the amount received beyond actual and necessary expenses. The court may consider the estate's size, care and responsibility, time spent, skill and the success of the administration. A fee set out in the will generally replaces the statutory commission unless the executor renounces it within the time limit.

What to do next

• Find the date the grant was issued and count forward to 30 days, six months, 12 months and 18 months.
• Check that you received a notice of the grant.
• Ask the executor in writing for a status update and a summary of debts and claims.
• Do not sign a release or consent until you understand what you are giving up.
• Note that a Notice of Objection must be served at least 10 days before the passing date, and ask the Probate Court registrar to confirm the current forms.
• Speak to a lawyer if the executor will not respond or the delay seems unreasonable.

Frequently asked questions