In Prince Edward Island, beneficiaries have the legal right to request a formal “Passing of Accounts” from the estate’s executor. This is a detailed financial ledger of every dollar that entered and left the estate. If the executor refuses to provide this, you can apply to the Supreme Court of Prince Edward Island to force an accounting.
Being named a beneficiary in a Will is an honour, but it can quickly become frustrating if the executor is not communicating. Many beneficiaries in Prince Edward Island feel kept in the dark while waiting months or even years for their inheritance. It is important to know that you do not just have to wait silently; you have the legal right to know exactly how the estate’s money is being managed.
An executor has a strict fiduciary duty to act in the best interests of the estate. They must keep immaculate records of all bank accounts, property sales, debts paid, and taxes filed. Requesting an accounting of the estate is the standard way to verify that the executor is doing their job correctly and not misusing funds.
Step-by-Step Process in Prince Edward Island
Whether the estate is being settled in Charlottetown, Summerside, or Montague, the rules surrounding estate accounting remain the same. Here is how most beneficiaries go about securing the financial records they deserve.
Step 1: Request an Informal Accounting
Always start with a polite, written request. Send an email or a formal letter to the executor asking for an “informal accounting” of the estate. This should include bank statements, a list of liquidated assets, receipts for funeral or legal expenses, and a timeline for final distribution. Often, a gentle nudge is all an overwhelmed executor needs.
Step 2: Review the Financial Ledger
Once the executor provides the ledger, review it carefully. Look for any red flags, such as unexplained cash withdrawals, missing assets (like a vehicle or family heirloom), or exorbitant expenses. If they hired a law firm or accountant, those fees should be clearly documented with invoices.
Step 3: Sign a Release or Raise Objections
If the accounting looks correct, the executor will likely ask you to sign a “Release.” By signing this, you agree with the math and release the executor from future liability, paving the way for you to receive your cheque. If you spot errors or the executor is hiding information, do not sign the release. Instead, outline your objections in writing.
Step 4: Apply for a Formal Passing of Accounts
If the executor ignores your request or refuses to explain suspicious expenses, it is time to escalate. You must hire an estate lawyer to file an application with the Estates Division of the Supreme Court of Prince Edward Island. The judge will order a formal “Passing of Accounts,” compelling the executor to bring every single receipt and statement into the courtroom for review.
How Much Does it Cost in Prince Edward Island?
Forcing an executor to open the books involves legal fees, but it is often necessary to protect your inheritance.
- Informal Request: $0 CAD. Sending a letter yourself costs nothing.
- Hiring a Lawyer to Draft a Demand Letter: Usually ranges from $300 to $600 CAD. This is often enough to scare a stubborn executor into compliance.
- Court Application for Passing of Accounts: If you must go to the Supreme Court, legal fees can quickly reach $3,000 to $10,000+ CAD depending on how hard the executor fights.
- Who Pays?: Initially, you pay your lawyer. However, if the court finds the executor acted improperly or delayed without cause, the judge may order the executor to pay your legal costs personally.
How Long Does the Process Take?
If the executor is cooperative, an informal accounting can be produced in 2 to 4 weeks. However, if you are forced to file a court application in PEI, getting a hearing date for a formal Passing of Accounts can take 6 to 12 months. Keep in mind that an executor typically has an “executor’s year” (one full year from the date of death) to gather assets before they are legally expected to distribute funds.
Frequently Asked Questions (FAQ)
Can an executor hide the deceased’s bank statements from me?
No. As a residuary beneficiary (someone receiving a percentage of the overall estate), you are legally entitled to see the financial statements that prove the value of your share. The executor cannot keep this a secret.
What happens if the executor stole money from the estate?
If a Passing of Accounts reveals that the executor misappropriated funds, they have breached their fiduciary duty. You can petition the Supreme Court of PEI to have them removed from their role and sue them personally to recover the stolen money.
Do I get to see the accounting if I am only getting a specific gift?
Generally, no. If the Will explicitly says you only get a specific item (like $5,000 or a specific car), you are not entitled to see the entire estate ledger. You are only entitled to receive your specific gift.
Can the executor pay themselves before showing the accounting?
Executors are entitled to claim a fee (usually up to 5% of the estate value) for their work. However, they should not take this fee until the beneficiaries have reviewed the accounting and signed a release, or the court has approved the fee during a Passing of Accounts.
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