What to Do When Someone Dies: A Step-by-Step Guide to Administering or Probating Their Estate

Losing a loved one is an emotionally difficult experience, and handling their estate can feel overwhelming. However, taking a step-by-step approach can simplify the process and ensure everything is handled correctly. Here’s a comprehensive guide to help you through the legal and administrative aspects of managing a deceased person's estate.

Step 1: Making Burial or Funeral Arrangements

The people with the right to make arrangements and deal with a deceased’s remains are:

• Family

• Friends

• A named executor (person(s) named in the will to manage the deceased’s estate)

The estate of the deceased person is responsible for paying for burial/funeral expenses. The executor is responsible for arranging this but family and/or friends may step in if there is no executor.

The deceased’s bank may consider advancing funds from their bank account directly to the funeral home for funeral costs. The executor will need to contact the deceased person’s bank to make an inquiry.

If the deceased doesn’t have sufficient funds to pay for funeral/burial costs, funeral benefits may be provided by the Government of Alberta.

• The executor of the estate should advise the funeral home that the deceased is unlikely to have sufficient funds to pay for the funeral.

• The funeral home will submit the application to the Government of Alberta.

Step 2: Obtain a Death Certificate

The next step in administering an estate is obtaining a death certificate. This document is crucial for notifying financial institutions, government agencies, and initiating the grant process. In Alberta, you can request a death certificate through a funeral home or directly from Vital Statistics.

Step 3: Locate the Will (If There Is One)

If the deceased had a will, it is essential to locate it as soon as possible. The will outlines their wishes regarding how their estate should be administered and who should act as the executor. The executor is responsible for managing the estate, ensuring debts are paid, and distributing the assets.

There is no will registry in Alberta. Many people keep their will in a secure location such as a safety deposit boxes, a safe, or with a trusted third party.

• No will? If the deceased didn’t have a will, the administrator of the estate/person with priority to apply for a grant is set by the Estate Administration Act. The estate will be handled according to Wills and Successions Act, which define how assets are distributed among surviving relatives.

Step 4: Notify Relevant Parties

After locating the will, the executor or administrator should inform all relevant parties of the death. These include:

• Banks and financial institutions

• Insurance companies

• Government agencies (e.g., Canada Revenue Agency, Alberta Health)

• Employers or pension providers

You should also cancel any ongoing subscriptions or utilities tied to the deceased person.

Step 5: Determine if a Grant is Needed

A grant of probate is the legal process where a court validates the will and confirms the executor’s authority to manage the estate. A grant of administration is the legal process where a court appoints an administrator of an estate when no will exists, and gives the administrator the authority to manage the estate. In Alberta, not all estates require a grant especially if assets are jointly held or there are few assets. However, a grant is typically necessary if the deceased held:

• Real estate in their name alone

• Bank accounts or investment accounts without a named beneficiary

• Significant assets

It’s advisable to consult a professional to assess whether a grant is required.

Step 6: Identify and Secure Assets

The executor/administrator’s job is to identify and secure all assets of the deceased. These may include:

• Bank accounts

• Real estate

• Personal property (jewelry, vehicles, etc.)

• Investments and pensions

• Insurance policies

The executor should take steps to protect the assets during the application process, such as insuring property and keeping funds in a secure account.

Step 7: Apply for a Grant (If Required)

If a grant is needed, the executor/administrator must complete and submit the necessary forms to the Court of King’s Bench Surrogate Section. The key steps are:

1. Complete the grant application: This includes forms such as the Application for a Grant (GA1), an inventory of assets and liabilities (GA2), and the Notice to Beneficiaries or Other Interested Parties (GA3).

2. Pay the Surrogate fees: Fees are based on the total value of the estate.

3. Submit the application: You’ll submit the completed forms to the court, where a judicial clerk and a Justice will review the application.

If everything is in order, the court will issue a Grant, allowing the executor/administrator to officially manage the estate.

Step 8: Pay Debts and Taxes

Before any distribution of assets can occur, the estate’s debts must be settled. This includes:

• Outstanding loans or mortgages

• Credit card debt

• Taxes owed to the Canada Revenue Agency

The executor/administrator must file the deceased’s final tax return and settle any tax liabilities. Once all debts and taxes are paid, a Clearance Certificate from the CRA should be obtained to confirm that no further taxes are owed.

Step 9: Distribute the Estate

After debts and taxes are paid, the executor/administrator distributes the remaining assets according to the terms of the will. If there is no will, assets will be distributed in accordance with Alberta’s Wills and Successions Act.

The executor should provide a detailed accounting of the estate to beneficiaries, outlining all assets, liabilities, and distributions made.

Step 10: Close the Estate

Once all assets are distributed and debts paid, the executor/administrator can apply to close the estate. This typically involves:

• Submitting final reports to the court (if required)

• Distributing any remaining funds

• Retaining records for the appropriate length of time in case of disputes or audits

Common Pitfalls to Avoid

• Delays in obtaining a grant: Incomplete forms or missing information can delay the issuance of a grant. Ensure that all documents are thoroughly completed and that supporting documentation is included.

• Overlooking taxes: Not filing tax returns or neglecting to obtain a Clearance Certificate can create future legal and financial issues.

• Family disputes: Clear communication with beneficiaries throughout the process can help avoid misunderstandings and disputes over the distribution of assets.

Seeking Professional Help

While it’s possible to handle the grant process yourself, it’s often beneficial to seek professional guidance, especially if the estate is complex. As a Wills and Estate Consultant, I offer support to executors and administrators throughout the grant process, ensuring all legal requirements are met efficiently and cost-effectively.

If you have recently lost a loved one and are unsure where to begin with estate administration, feel free to reach out to me, Varinder Sahota, for a free consultation. I’m here to help simplify the process, allowing you to focus on what matters most.