On June 1, 2015 the Estate Administration Act ("Act") came into force in Alberta. This Act updates the previous laws which dictate how an executor, or "personal representative", will have to administer the estate of a deceased person. The new law applies whether or not the deceased had a will at the time of death.

One of the main purposes of the Act was to modernize the language and the approach taken to administering estates. The new law sets out the duties of the personal representative in plain language and imposes some additional responsibilities as well.

While it has always been the case that a personal representative is a fiduciary, the new law specifically describes what this means in more accessible terms. The personal representative "must act honestly and in good faith, in accordance with the testator's intention and with the will, if one exists, and with the care, diligence and skill that a prudent person would exercise." They must also distribute the estate "as soon as practicable."

Additionally, the new Act sets out four "core tasks" required of personal representatives:

  1. To identify the estate assets and liabilities. This includes ensuring that all relevant benefits (including pensions and life insurance policies) are collected, as well as determining the value of any land, investments and all other property owned by the deceased.
  2. To administer and manage the estate. The personal representative must keep accurate accounts of all money coming into and out of the estate. They must ensure that all of the estate property is properly insured and they must manage the on-going operation of any businesses operated by the deceased.
  3. To satisfy the debts and obligations of the estate. The personal representative must ensure that all proper, legitimate expenses and debts of the estate are paid, including any taxes owing by the deceased. The personal representative may need to advertise for creditors.
  4. To distribute and account for the estate to the beneficiaries. The personal representative must notify all people who are receiving a gift from the deceased. They will also administer any money that is left in trust for minors or other beneficiaries, and distribute the estate according to the terms of the will or the intestacy provisions in the Wills and Succession Act.

This is not a complete list of the changes included in the new legislation, and as always, executors are encouraged to obtain legal advice to ensure that they are correctly completing all necessary tasks.

Any changes that are made to legislation with the purpose of making the law more accessible to citizens should be viewed as welcome. However, personal representatives should be reminded that they may need professional assistance from lawyers, accountants or other professionals in order to ensure that they are acting with the good faith, reasonableness and diligence that the new Act requires.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.