Have you just learned that you have been appointed as the liquidator of a succession and you do not know where to start? Here are the steps you must follow to fulfill your obligations.
Procedures to follow
- Confirming your appointment as liquidator
To confirm your appointment, it is essential to obtain a testamentary search certificate from the Chambre des notaires and the Barreau du Québec1. Indeed, these certificates will confirm that the deceased’s will, which names you as liquidator, is indeed the last will, representing the deceased’s final wishes.
- Verifying the deceased’s official documents
It is necessary to validate the deceased’s official documents to check if they wrote a holographic will or a will made in the presence of witnesses. If you find a paper resembling a will signed by the deceased’s hand, we suggest you have the document analyzed by a legal professional, such as a notary or a lawyer.
- Registering a notice of designation
Once your appointment is confirmed, you must register a notice of designation in the Register of Personal and Real Movable Rights. This notice of designation will allow the public to verify the identity of the liquidator of the succession and potentially contact you.
- Notifying the heirs of the succession
At the same time, you must also notify the heirs of the succession so that they can renounce or accept the succession within the legal timeframes.
- Preparing and publishing an inventory of the deceased’s property
The inventory of the deceased’s property2 is essential for the proper administration of the succession; the inventory of the deceased’s property allows the heirs to exercise an option in an informed manner. Indeed, the purpose of the inventory is to accurately inform the heirs of the content and value of the estate’s assets. Consequently, it is only after the communication of such an inventory that the heirs can formally accept or refuse the succession.
There is no strict deadline for preparing and publishing the inventory of the deceased’s property. However, considering that heirs have six (6) months to refuse or accept the succession, it is strongly recommended to prepare and transmit the inventory of property at the end of this period3.
- Publishing a notice of closure of inventory
You must publish the notice of closure of inventory in the Register of Personal and Real Movable Rights.
Consequently, the obligation regarding the preparation of the inventory of the succession’s property is an essential formality that you cannot take lightly or neglect.
- Preparing the deceased’s tax returns
Once the notice of closure of inventory is published, you must begin preparing the deceased’s tax returns and file them with the relevant levels of government. This essential step will allow you to obtain the clearance certificates, which will subsequently allow you to distribute the property to the heirs.
- Obtaining clearance certificates
Clearance certificates confirm that the deceased is free of government debts. It is important to wait for the receipt of these certificates; otherwise, you could be personally liable for the deceased’s debts to the provincial and federal governments. Obtaining clearance certificates allows you to begin the distribution of property to the heirs, i.e., to proceed with the liquidation of the property.
- Paying the deceased’s debts
Before starting to distribute the property belonging to the heirs, you must begin by paying the deceased’s debts to institutions. Only after having fully paid all the debts of the deceased and the succession can you give what belongs to the heirs, starting with the particular legacies4.
- Final account rendering
Before paying the inheritance belonging to the universal legatees, there is one very important step left to accomplish: the final account rendering. Indeed, your mandate as liquidator of the succession ends when the universal legatees of the succession have obtained a copy of the final account rendering and have signed it.
This final account rendering is a document that allows the universal heirs to see what remains in the estate’s assets once the debts have been paid and the particular legacies given5. As such, it is necessary for the universal heirs to accept the final account rendering, which confirms that your work as liquidator of the succession has been performed to their complete satisfaction.
Should the heirs refuse the final account rendering, you will have to turn to the courts to be discharged from your mandate as liquidator of the succession6.
- Publishing the notice of closure of the liquidator’s account
Once all the universal heirs have accepted the final account rendering provided, your final obligation is to publish a notice of closure of the liquidator’s account in the Register of Personal and Real Movable Rights. Upon publication of this notice, your role as liquidator of the succession is officially over7.
Should the liquidation of the succession extend beyond one year, please note that you will also have the obligation to perform an annual account rendering8. This annual account rendering reports on your management of the succession to the heirs, creditors, and particular legatees.
1. Article 803 of the Civil Code of Québec (CCQ).
2. Articles 794 and 1327 of the CCQ.
3. Articles 632 and 800 of the CCQ.
4. Articles 808 and 819 of the CCQ.
5. Article 820 of the CCQ.
6. Article 821 of the CCQ.
7. Article 822 of the CCQ.
8. Article 806 of the CCQ.
IN SUMMARY
- How much time does the liquidator have to prepare the inventory of the succession?
The liquidator must prepare and transmit the inventory of property within six months following a person’s death, as this is the timeframe heirs have to refuse or accept the succession.
- Is the liquidator of the succession remunerated for their work?
This depends on what is provided in the will or what the heirs agree upon. In the absence of a will, the liquidator is entitled to remuneration if they are not an heir.
- Can the role of liquidator of the succession be refused after it has been accepted?
Yes, it is possible to refuse, unless you are the sole heir. However, the heirs can agree to replace a liquidator.
- What happens if the liquidator does not fulfill their obligations?
It is possible to request the removal of the liquidator or to request any appropriate order to ensure the preservation of one’s rights.
We recommend consulting a lawyer to learn about your various recourses.
- Can the liquidator be personally sued by the heirs?
Yes, if they have committed a fault in the performance of their duties.
