If an executor in New Brunswick is unreasonably delaying the distribution of an estate, beneficiaries can take legal action. You can demand a formal “passing of accounts” or apply to the Probate Court to have the executor removed and replaced, protecting your inheritance.
Waiting for an inheritance is often a stressful experience, especially when communication breaks down. After a loved one passes away, the person named as the executor (or personal representative) has a legal duty to gather assets, pay off debts, and distribute the remaining funds to the beneficiaries. However, when months or even years pass without a single update, you might start to worry that the estate is being mismanaged. 💔
In New Brunswick, the law provides tools to hold slow executors accountable. Whether the estate is being handled in Moncton, Fredericton, or Saint John, executors cannot simply sit on the assets forever. While the process takes time, an executor who ignores their duties or refuses to share financial information can be forced to act by the Court of King’s Bench (Probate Division).
Step-by-Step Process in New Brunswick
Before rushing to court, it is important to understand the legal timeline and take measured steps to demand transparency from the executor. 📍
Step 1: Understand the “Executor’s Year”
Under Canadian common law, an executor is generally granted one full year from the date of death to wrap up standard estate matters. This is known as the “executor’s year.” During this time, they must locate the will, apply for Letters Probate, file terminal tax returns with the Canada Revenue Agency (CRA), and wait for a Clearance Certificate. If the estate is still within this first year, courts will rarely penalize the executor for not distributing funds yet.
Step 2: Send a Formal Demand for an Accounting
If the executor’s year has passed and there is still no distribution, your first formal step is to demand answers. 📧 You or your estate lawyer should send a written letter requesting a “passing of accounts.” This is a demand for a complete, penny-by-penny financial report showing all the money that has entered and left the estate. Often, receiving a letter from a law firm is enough to make a lazy executor finish the job.
Step 3: Apply to the Probate Court for Removal
If the executor ignores your letters or provides an accounting that looks suspicious, you may need to escalate. Your lawyer can file an application with the Probate Court to formally order the executor to pass their accounts in front of a judge. If the judge finds that the executor has endangered the estate, stolen money, or caused severe delays, the court can legally remove them and appoint a new administrator.
How Much Does it Cost in New Brunswick?
Challenging an executor involves legal costs, but doing nothing could cost you your entire inheritance. 💰
- Lawyer Demand Letter: Having a local lawyer review the situation and draft a formal demand letter usually costs between $300 and $750 CAD.
- Court Filing Fees: Filing an application at the New Brunswick Probate Court generally involves a filing fee of approximately $75 to $150 CAD.
- Litigation Retainer: If you must go to court to force a passing of accounts or remove the executor, expect to pay a law firm an initial retainer of $3,000 to $7,000 CAD. If the executor is found guilty of misconduct, the judge may order them to repay these costs personally.
How Long Does the Process Take?
Estate administration requires patience, but legal interventions can speed up a stalled process. ⌚
| Phase of the Process | Expected Timeline |
|---|---|
| The Executor’s Year | First 12 months after death |
| Response to a Demand Letter | Usually 15 to 30 days |
| Court Application for Removal | 3 to 6 months to get a hearing date |
Frequently Asked Questions (FAQ)
Why is the executor holding back some money?
Executors hold personal liability for the deceased’s unpaid taxes. It is standard practice to hold back a “reserve fund” until the CRA issues a final Clearance Certificate, which proves no more taxes are owed. This process alone can take 6 to 12 months.
Can I sue the executor for lost money?
Yes. If the executor’s delay caused the estate to lose money (for example, failing to sell a house before a market crash, or letting investments rot), you can sue them for a breach of fiduciary duty to recover the lost funds.
Do I have to pay my lawyer out of my own pocket?
Initially, yes. You will need to pay your lawyer’s retainer. However, if the court agrees that the executor acted improperly, the judge can order that your legal fees be reimbursed from the estate funds, or directly from the executor’s own pocket.
What happens if the executor dies before distributing the estate?
If the sole executor passes away, their own executor usually takes over the administration of the original estate. Alternatively, a beneficiary can apply to the Probate Court to be appointed as the new administrator with the will annexed.
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