I am a beneficiary under a Will. What can I expect?
If you have recently lost a loved one and have been named as a beneficiary in their will, you may be wondering what comes next. Being a beneficiary means you are entitled to receive part or all of the deceased’s estate, or benefit from a trust established through the will.
The will typically appoints one or more executors responsible for managing the estate. For most wills, the executor must obtain a Grant of Probate from the Supreme Court of British Columbia. This probate process confirms the validity of the will and grants the executor authority to administer the will. Typically, the court application itself takes two to three months to be processed. However, prior to the court application, there is often several months of asset inquiries with third parties like banks and financial institutions.
As well, at least 21 days prior to the application for probate, the executor must provide named beneficiaries with a copy of the will and any codicil. Once a Grant of Probate is issued, the executor must wait 210 days before they can distribute the estate assets unless they receive the consent of all beneficiaries and potential claimants under a wills variation claim. A beneficiary who is a spouse or child of the deceased may make a wills variation claim against the estate within 180 days of the issuance of a Grant of Probate if they have not been treated fairly.
The executor has a legal duty to maintain detailed records of all financial transactions related to the estate. As a beneficiary, you should expect an interim accounting and interim distribution during the administration process, followed by a final accounting for approval before the estate is fully distributed. Note that an interim distribution is at the discretion of the executor, and you may need to wait until all estate debts and taxes are dealt with.
Although the executor has a duty to keep beneficiaries reasonably informed, the executor is not required to consult beneficiaries on every decision or provide a running commentary on the administration of the estate.
Even after the probate process is completed, final distribution of the estate can take 1-2 years to finalize for a simple estate because of tax filings and clearance from Canada Revenue Agency. Timelines can vary significantly depending on the estate. Estates that own private company shares or other illiquid assets take longer to administer.
Conclusion
The settlement of an estate can be complicated and overwhelming. If you have any questions or concerns about the administration of an estate, we encourage you to contact our Wills & Estates Team.