When Will I Receive My Inheritance as a Beneficiary in Saskatchewan?

You have been told you are a beneficiary, and now you are waiting. It is natural to wonder why the money has not arrived, especially when weeks turn into months and there is little news.

Most of the delay is built into the process. The executor has steps to complete, some of them with waiting periods, before they can safely pay out. This article walks through those steps from the beneficiary's side so you know what to expect.

This article covers the law of Saskatchewan.

Why an inheritance rarely arrives quickly

The Court of King's Bench says the average estate takes about a year. Some are faster and some are much slower, depending on the assets, the debts, the taxes and whether anyone disagrees.

The executor is not simply handing over gifts. They must first gather the assets, pay the deceased's debts and settle the tax position. Debts are paid from the estate and must be paid before any gifts in the will go to beneficiaries. That is why an executor will generally wait to pay gifts until the debts have been dealt with.

The steps that must happen before you are paid

• Creditors are given notice. A Notice to Creditors (Form 16-48) should be published once a week for two consecutive weeks in a newspaper nearest the deceased's last residence.
• Debts and expenses are paid. The executor should also run a personal property lien search and a judgment registry search to find debts that might otherwise be missed.
• Tax returns are filed. The final income tax return is generally due April 30 of the following year for a death between January 1 and October 31, or six months after death for a death between November 1 and December 31. The estate may also file a T3 return for income it earns after death.
• The CRA clearance certificate is requested. Form TX19 is sent only after the returns are filed, notices of assessment are received and tax is paid, and assessment can take up to 120 days.
• Final distribution happens. It cannot occur until the clearance certificate is received.

The clearance certificate matters because a legal representative who distributes assets before getting it can be held personally liable, up to the value of the assets distributed, if tax is still owing. An executor who says they are waiting for the CRA is usually protecting themselves and, in a sense, you.

The six-month hold for possible claims

Distribution may be delayed six months after Letters are obtained where a dependant may claim under The Dependants' Relief Act, 1996, or where a spouse may apply for division of family property. Dependants include a legal, common-law or same-sex spouse, children under 18, and adult children unable to support themselves due to disability. They may claim where the will makes inadequate provision for them.

For a spouse's family property claim, no application may be started more than six months after the grant of probate or administration, and a spouse who signed a valid waiver cannot apply. Whether a hold applies to your estate depends on the family and the will, so ask the executor if they are waiting on this.

Money that may reach you sooner

Not everything you receive depends on probate. Land held in joint tenancy with survivorship, bank accounts with survivorship, life insurance with a named beneficiary, and RRSPs or RRIFs with a named beneficiary pass outside probate. If you are the named beneficiary or surviving joint owner, ask the insurer or financial institution what it needs from you, since for financial assets the institution decides whether it requires Letters.

Even assets that pass outside probate can have tax consequences. An unmatured RRSP's fair market value at death is included in the deceased's income on the final return. A spouse may be able to avoid this by transferring the RRSP to their own RRSP by the end of the year after death.

Accounting, releases and beneficiaries who cannot be found

The executor must account to beneficiaries within two years, or pass the accounts at the court house if they are disputed. At the end, the executor may ask beneficiaries to sign a release, or obtain a court order passing the accounts and distributing the estate. Read a release carefully before signing. What it means for your rights depends on its wording and your situation, so it is worth confirming with a lawyer first. Our articles on how long probate takes and on disputing an executor's accounts cover those topics in more detail.

Beneficiaries are confirmed with executed heirship affidavits. If a beneficiary cannot be found, an heir locator may be hired, and if that fails the executor or administrator must apply to court for directions on paying out the funds. This can slow the whole estate, so keep your contact details current with the executor.

What to do while you wait

• Ask the executor politely for a rough timeline and which steps are still outstanding.
• Confirm whether any assets pass outside the estate to you directly, such as insurance or a named-beneficiary plan.
• Give the executor your current address, phone and email.
• Ask whether a six-month hold or a dependant's claim is a concern.
• Keep any letters or accounts you receive, and do not sign a release until you understand it.
• If you suspect something is wrong, or the delay seems unexplained, speak with a lawyer about your options.

Frequently asked questions