Jaques Law Office - Saskatchewan Estate Law - Preservation Of Property

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Disclaimer

The following is no substitute for advice provided by a lawyer specifically for you. It is intended only to help you understand that advice. No responsibility is taken for any problems arising except due to paid legal advice.

©1996 Jaques Law Office. All Rights Reserved.

Inventory and Secure Assets

Introduction

• One of the primary duties of the Executor is to find and preserve the deceased's property.
• This page may be useful as a checklist to ensure you don't forget to perform certain duties. It is by no means an exhaustive list of what might be done, or the types of properties that might be involved.

Release of Info

• If you have retained a Solicitor to assist you, s/he will require a Consent to the Release of Information, in order to obtain the necessary information.

Insurance

• Ensure everything is insured. Otherwise, any reasonably preventable losses may come out of the Executor's pocket.
• If a house is empty most policies will require a notice and may reduce coverage unless special protection is purchased.
• SGI requires that vehicle plate insurance must be changed within 60 days of death.
• Review all policies to check for such limits and requirements. Have your lawyer assist you.

Perishable goods?

Receivables

• If cheques are received payable to the deceased, they should be returned for reissue, even though the bank may still honour them. Otherwise, if they were not properly payable, the payer may come later looking for repayment from the Executor. For instance, CPP entitlement ends one month after death.
• Other Receivables should be pursued. The collectibility of receivables declines rapidly with age and inattention. Of course the first step, is to give notice to the debtors to pay to the estate.
• Lawyers are effective and can, if necessary, enforcement payment.

Leasing

• Let the lessees know where to make their payments, and that they should pay to the estate.
• If assets will be unused and may not be available for distribution for some time, consider leasing them. Not only does it (usually) create an income stream, in most cases, it will result in more favorable insurance coverage, and better maintenance of the asset.
• But note that the Beneficiaries must consent for a lease greater than one year. Of course incapable Beneficiaries (like children) can't consent. The Public Trustee can consent on their behalf.
• Your lawyer can assist with the consents, and with the lease agreements.

Business

• Most businesses decline rapidly in value after they cease to operate. If necessary, hire a manager to care for them.
• Your lawyer can assist you with management agreements, and understanding the existing business agreements and regulations.

Farm

Grain

• Attend to the crops to ensure they are planted, fertilized, weeded, harvested and stored.
• There will be a Permit Book which permitted the deceased to sell grain. Request the Canadian Wheat Board to reissue it in the name of the estate, and to grant special permission upon its expiry (normally July 31).
• The Permit Book will probably be at the Grain Elevator customarily used by the deceased. Tell the Elevator Agent to send the plastic plate to the Wheat Board, with a request that it be reissued in the name of the estate.
• If the land was or will be leased out then the lessee can put the grain sales on their own permit book.
• If the land was leased, find out what was sold (number of bushels, grade, kind, price, and percentage interest which the deceased held in it).
• If the deceased was the lessee, the same information must be obtained.

NISA (Net Income Stabilization Account)

• Unless, the estate intends to continue farming for some time, it is usually best to close the account and request withdrawal of all monies owing.

Look for Benefits

In General

• The Executor must look for benefits owing to the estate, but it is usually convenient to look for benefits available to survivors and beneficiaries at the same time. Obtaining such benefits for the survivors would be at the recipient's expense.

Insurers

• At some point, the estate will want to cancel unnecessary insurance, and if possible, collect a refund for the unused portion of the policies.
• Some types of insurance are also a savings scheme. In such a case, they will have a cash value.
• Of course some insurance may have benefits payable as a result of the circumstances of the deceased's death, or the death itself.
• So the Executor must find all policies, and determine the requirements to settle.
• There may be loans against the policies, so that should be determined too.
• G.M.S. (Group Medical Services) and M.S.I. (Medical Services Incorporated) are such common types of insurance, that it is wise to check them even if no policy is known. Further, if there was a sickness prior to death, there may be benefits available.

Old Age Security

• One and only one month of benefits should be paid following death

Philanthropic Organizations

• Sometimes the circumstances of the estate or the deceased will make benefits available from certain philanthropic organizations. It is common to check the following:
  • Veteran's Affairs
  • Last Post Fund
  • Purple Shield

Pensions

• Pensions vary greatly. Sometimes, the pension income is guaranteed to be paid regardless of the deceased's death. In some cases, there may be survivorship benefits, and/or a payout of the deceased's unused portion.
• Almost everyone has a Canada Pension Plan (CPP) account.
• Tell each Pension to send the cheques to the estate, in the name of the estate, and inquire into Death Benefits, Survivors Benefits, the value at the date of death, and whether there are other benefits.
• Find out from each, the requirements of obtaining the benefits, and meet those requirements.
• The plans themselves are densely written, and typically reluctant to offer more than brochures. Further, they are heavily regulated. A lawyer can help you understand this technical area.

Employers

• There may be unpaid wages, sick pay, vacation pay, bonuses, etc. They may have information on pension plans and insurance. They may offer final benefits
• Obtain this information, ensure all amounts payable are received.
• Obtain the necessary tax slips.

Investments

Banks

• For each bank, request:
  • a list of all accounts
  • a list of all debts
  • a list of all potential debts
  • safety deposit box numbers
  • any documents in safekeeping
• For each account, request the bank to provide:
  • Balance
  • interest accrued
  • interest rate
  • maturity date
  • interest paid in the year of death
• For each debt (or potential debt (e.g. guarantees)), request the bank to provide:
  • original and current principal amount
  • interest accrued
  • interest rate
  • maturity date
  • interest paid in the year of death (for tax purposes).
  • the nature of security held
  • repayment terms
  • whether any insurance was placed in connection with the debt
  • copies of any agreements
• Arrange for settlement of all the accounts and debts
• The bank will likely not permit withdrawal of the contents of the safety deposit boxes prior to probate, but normally will permit inspection and inventory.

Credit Unions

Take all the steps applicable to banks.

• There will probably also be a membership with a recoverable value. Obtain
  • the membership number
  • the value
  • the accrued interest
  • the requirements for recovery

Cooperatives

• Like a Credit Union, there will be a membership with a recoverable value. Perform the same steps.
• Request the amount of dividends payable in the year of death (for tax purposes).
• In Saskatchewan, if the deceased spent any time in rural areas, check out the Saskatchewan Wheat Pool.

Investment Companies and Brokers

• Request a list of any securities held, and for each:
  • their value
  • any dividends or interest payable in the year of death (for tax purposes).
  • original and current principal amount
  • interest accrued
  • interest rate
  • maturity date
  • transfer or liquidation requirements
• It is often helpful to provide a list of known securities for their assistance.
• Often a security will be locked-in, in some fashion. Determine the penalty (loss of interest, increased fee, etc.).

Please also see the map of all our pages. You may also be interested in the Estates - General page or the Wills page.

Please see the map of all our pages