Knowing whether an estate is solvent or insolvent is very important. A loss-making estate will almost always be refused by the heirs.
The heirs sometimes idealize the solvency of an estate based on the lifestyle of the deceased and various social markers. It sometimes happens that relatives discover significant debts during the liquidation phase of the estate.
The estate liquidator: responsible for administration of the estate
The person in charge of the estate is the estate liquidator. It is often named in the deceased’s will. In the case of an “ab intestat” estate (estate without a will) or if the deceased’s will does not provide for a liquidator, it will be the heir or heirs who will be responsible for liquidation of the estate.
During the tasks assigned to him, the liquidator of the estate determines if an estate is solvent or has a shortfall.
Finding out if the estate is solvent
To decide whether or not the estate is solvent, the liquidator will need to draw up the inventory of the estate’s assets. The deceased’s estate inventory will show whether the estate’s assets are greater than the debts, if any.
Taking an inventory of the estate makes it possible to list the different types of property of the deceased, such as:
- bank accounts,
- holdings in companies,
- real estate,
- pension plans payable to the estate,
- insurance policies,
- loans owed to the deceased,
- rights to the patrimony of another estate,vehicles,jewelry,
works of art,
The inventory of the estate also makes it possible to list the debts of the deceased, such as:
- mortgage loans,
- lines of credit,
- credit cards,
- personal debts,
Accepting or refusing the estate
The heirs or legatees, on presentation of the inventory of the estate, decide whether or not to accept the estate.
The acceptance of an inheritance is tacit, which means that no document is required to notify that the heirs accept it.
Renouncing an inheritance must be done within a prescribed period, generally 6 months after the death of the deceased, by a notarial deed, i.e. the renunciation of the inheritance.
Get support in the process of liquidating an estate
Mtre Mona Salehi and her team will support you in the liquidation of a Quebec-based estate or an international estate (with ties to the deceased’s estate in Quebec).
Mona Salehi Notaire Inc – Notary in Montréal