Is an executor obligated to pay the debts of the estate before distributing the assets to the beneficiaries?
British Columbia, Canada
The following excerpt is from Sull v Pengelly, 2019 BCSC 575 (CanLII):
An executor is a trustee for the beneficiaries of an estate and owes a duty to them to first pay the debts of the estate and to then hand over or distribute what remains in accordance with the terms of the will: Robillard v. Robillard Estate, 2015 BCSC 1417 at para. 49. An executor, being a fiduciary in relation to the beneficiaries, cannot deal with the estate in a manner that is adverse to their interests: Cowper-Smith v. Morgan, 2017 SCC 61 at para. 41.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
Is an executor's duty to settle the affairs of the estate and distribute the estate to beneficiaries? (British Columbia, Canada)
Can a co-executor be removed from the role of executor if the executor and beneficiary are at odds? (British Columbia, Canada)
What is the executor's duty to distribute the estate to the beneficiaries? (British Columbia, Canada)
Does a testator have a moral obligation to ensure that the surviving spouse of a deceased testator's estate is not dependent upon another spouse who contributed substantially to his estate? (British Columbia, Canada)
When a spouse's assets are not family assets, is one of the spouses entitled to an equal division of assets? (British Columbia, Canada)
Can an Executor of an Estate make interim payments to beneficiaries of a will, notwithstanding a pending claim for variation of the will? (British Columbia, Canada)
How is the net asset value of a broken-up marriage calculated when the parties agree the total family debts as at least as at the time of separation are to be deducted from the total assets? (British Columbia, Canada)
Is a husband's contribution to a business considered a family asset in determining if the business asset is a business asset? (British Columbia, Canada)
Is there any argument to exclude certain assets from the class of family assets in a claim for interim distribution? (British Columbia, Canada)
What is the test for unequal division of property or debt when a spouse fails to disclose their assets and debts? (British Columbia, Canada)
