Obligations of an executor throughout probate
I assume that your husband is called as executor of the property of the deceased, Bonnie. An executor (or property trustee) is often named in a will, however it may well apply to the courtroom to be appointed if there isn’t a will.
It’s the accountability of the executor to pay all money owed (together with funeral and testamentary bills), inheritance (plus succession duties), taxes, in addition to different associated liabilities of the deceased in Canada and overseas. If the property has extra liabilities than belongings, the property may very well be thought of bancrupt.
Collectors are to be paid in a selected order, and the executor will be personally accountable for not adhering to the right sequence. That mentioned, neither the executor nor the beneficiaries must personally repay the money owed of the deceased if the property is bancrupt.
I assume the property in query, Bonnie, has extra belongings than liabilities, however there may be only a little bit of a money crunch, significantly associated to prices that should be paid imminently.
If an property consists of actual property or money or investments at a monetary establishment, usually the executor should apply for a grant of probate to show they’ve authorized authority to cope with these belongings. With the intention to receive probate, an executor should usually pay the probate charges or property administration tax as a part of the probate utility.
Happily, an executor can request funds from a financial institution to pay bills like probate charges earlier than acquiring probate. The identical advances will be made for different payments, just like the excellent debt you’ve talked about.
When money will not be a part of the property
Nevertheless, for the reason that property your husband is dealing with has no money and solely actual property, Bonnie, it does make issues a bit harder. He might be able to strategy the beneficiaries of the property to ask them to entrance the money required to pay the payments and probate. These funds could be reconciled and paid again to them earlier than figuring out their share of the property.
Your husband may additionally pay the bills himself and, likewise, may reimburse himself as soon as money turns into out there.