My cousin is asking for the $1,500 my mom owed him. As the executor, I can repay any debt under $2,000 at my own discretion.
You cannot prioritize personal loans. You must repay creditors in the order of priority laid out by the government of Canada in the Bankruptcy and Insolvency Act.
The testator's utility bill just came in the mail, but the estate bank account isn't set up yet. Do I have to pay it?
Yes. As the executor, you need to pay for any informal debts (aka bills) that come in until probate can be approved and the estate bank account can be established. Keep a record of all of your expenses so you can be reimbursed later.
Mom's annual magazine subscription bill just came in. Do I pay it?
It's your job as the executor to not only pay for any informal debts or bills that come in, but also to contact third-party service providers or subscription services to cancel on behalf of the deceased. This includes everything from recreational activities to Canada Post.
Beneficiaries are always paid before any creditors.
Debts must always be paid prior to the beneficiaries. This is a very important step and can result in litigation if a creditor files a request, but there are no funds to cover it because beneficiaries were paid out first.
How do you pay debts if the estate has no funds?
Please select 3 correct answers
You should seek all three of these solutions to assist you with an insolvent estate. Find a legal professional with bankruptcy experience, discuss liquidating estate assets with your beneficiaries, and be sure to repay creditors in order of priority (do not play favourites!)