5 things to know about the role and responsibilities of a liquidator
- Respect the will and final wishes of the deceased and protect his property:
- The liquidator must respect the will and final wishes of the deceased in order to properly administer the estate and allocate what is owed to the appropriate heirs.
- Close bank accounts and inform service providers and governmental bodies to cease all activities in the deceased’s accounts:
- The liquidator must close the deceased’s bank account and set up an account on behalf of the succession.
- It is important to notify other relevant entities of the deceased’s passing in order to cease all activities in the deceased’s accounts.
- Service providers: i.e. telephone, internet, electricity, credit cards, etc.
- Governmental bodies: i.e. Régie des rentes du Québec, Régie de l’assurance maladie du Québec, etc.
- Obtain information regarding the assets, liabilities, and expenses of the estate:
- Assets of the estate include:
- Universality of movable property,
- Currency in cash, investments, RRSP, TFSA, pensions and other securities,
- Personal items,
- Valuables and jewelry, etc.
- Liabilities and expenses of the estate include:
- Funeral costs,
- Loans and mortgages,
- Debts repayment,
- Credit cards, VISA payments, etc.
For more information, please visit our website for inventory forms: https://schneiderlegal.com/estate-liquidation-form/
- Pay off debts and creditors:
- Pay off debts: if estate is solvent, the liquidator must pay the known creditors and known legatees by particular title as and when they present themselves. The liquidator must also pay the ordinary public utility bills and outstanding debts as and when they become due or according to the agreed terms and conditions.
- File deceased’s income tax returns and issuance of property.
- Prepare an inventory:
- Prepare an inventory: faithful and exact enumeration of all the property entrusted in the liquidator’s administration or constituting the administered patrimony (art. 1326 C.C.Q.). Which includes:
- Description of the immovables,
- Description of the movables,
- Indicate their value,
- In the case of a universality of movable property, provide sufficient identification of the universality,
- Description of the currency in cash and other securities,
- Listing of valuable documents,
- Statement of liabilities and expenses,
- Recapitulation of assets and liabilities.
- The inventory must be notarized en minute, or by private writing before 2 witnesses.
- What are the formalities to respect regarding the inventory? The inventory must be published to the RDPRM and in a newspaper circulated in the locality of the deceased’s last address.
- What happens if the settling of the estate takes more than one year? The liquidator must produce an annual updated account at least once a year.
For more information, on settling an estate, please visit: https://schneiderlegal.com/2016/07/30/settling-an-estate/
For more information on the role of the liquidator, please visit: https://schneiderlegal.com/the-role-of-the-liquidator/
For more details on the responsibilities of the liquidator, please visit: https://schneiderlegal.com/the-role-of-the-liquidator/responsibilities-of-the-liquidator/
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The above noted text should not be construed as providing legal advice or a statement of your claim. The process highlighted above are merely parameters and barometers and do not constitute any warranties and guaranties with regards to your file at hand. We strongly recommend that you seek legal advice with a licensed attorney from the Barreau du Quebec or a notary at the Chambre des Notaires. Each case must be seen and analysed on its merits as the legal process may be complex and cumbersome.