When someone dies, anything they owned at the time of their death, as well as certain ongoing obligations they may have incurred during their lifetime, must be dealt with.
If the deceased left a will, that document will govern the handling of these affairs. The will should have appointed a Personal Representative (an Executor) who will be charged with the responsibility of gathering in all the assets of the deceased, paying any liabilities and distributing the estate according to the will. If the deceased had no will, then certain interested parties may handle these affairs.
Often it will be necessary to apply to the Court for an order that will appoint the person to look after the estate. This is made necessary if third parties, such as banks or investment companies hold estate assets. If there was a will, the Personal Representative may need to apply for an Order or Grant of Probate. If there was no will, the person looking after the estate will be given an Order or Grant of Administration. In both cases, the Order is the Court's authority for that individual to deal with the estate assets. Financial and similar institutions will usually refuse to turn over estate assets to the Personal Representative unless the Personal Representative can prove, by the Order of Probate or Administration, that they are authorized to look after the estate.
Once an Order of Probate or Administration has been granted, the Personal Representative proceeds to gather the assets, pay the liabilities and distribute the estate. This individual, once so appointed, has a responsibility to act reasonably and diligently in not letting the estate be unnecessarily diminished and making certain creditors are paid and beneficiaries receive their due. This is a great responsibility for which that individual will be personally liable.
Good Estate Planning can significantly reduce the cost and inconvenience of handling an estate. For more information on Estates or Estate Planning, contact Richard Davidson, Q.C., Edward Rice , Q.C., Cindee Nyrose or Roy Davidson.