Losing someone is difficult enough without also having to work out what happens to their property, debts, and financial affairs. When a person dies without a valid Will, they are said to have died “intestate.”
It should be noted that this does not necessarily mean that that estate will be left in limbo, nor will the government does automatically take everything. Instead, Alberta law provides a process for deciding who may inherit and who may take responsibility for administering the estate.
Who inherits when there is no Will?
When there is no Will, the deceased person does not decide who receives the estate. Alberta’s intestacy rules determine the beneficiaries and the shares they may receive. The result depends on the deceased person’s family circumstances.
A surviving spouse or adult interdependent partner may be entitled to some or all of the estate. Children may also be entitled to a share, depending on the circumstances. If there is no spouse, partner, or child, the legislation sets out which other relatives may inherit.
This is why it is not always safe to assume that everything will automatically go to a specific person.
Who takes care of the estate?
A Will normally names a personal representative who will through the probate process be confirmed as having the authority to deal with the estate. Without a Will, no one has been chosen in advance.
An eligible person may therefore need to apply to the court for authority to administer the estate. It should be noted that section 13 of the Estate Administration Act (Alberta), addresses which individuals have priority in applying for this role.
Once appointed, the administrator of the estate must gather information about the estate and move the administration forward. This may include:
- locating and valuing the deceased person’s assets;
- identifying debts and other liabilities;
- dealing with banks, investments, and real estate;
- paying taxes and estate expenses; and
- distributing what remains to the people who are legally entitled to receive it.
Not necessarily. Some jointly owned property whether physical property, or financial assets may pass to the surviving owner, while certain financial assets may pass directly to a named beneficiary.
For that reason, administering an intestate estate usually requires more than making a list of what the deceased owned. Each asset should be reviewed to determine if this asset falls within or outside of the estate administration process.
When can an intestate estate become more complicated?
Some estates are relatively straightforward. Others involve questions that take time to resolve. A home may need to be maintained, sold, or transferred. A minor who is entitled to inherit may require special arrangements for the management of the financial assets that they are to inherit. A blended family may include a spouse and children from an earlier relationship whose interests which may be considered under the legislation.
These issues can arise while family members are also trying to deal with immediate concerns such as bills, personal belongings, bank accounts, and funeral expenses. Without written instructions from the deceased, the family must follow the legal process rather than a plan chosen in advance by the deceased.
When someone dies without a Will in Alberta, the law supplies the rules that the person did not leave behind. Those rules determine who may inherit, while a court appointment may be needed before someone can administer the estate. The process can be manageable, but the family structure, the types of assets involved, and any competing interests can affect the steps required.
At Family Central Law, we can help you understand how Alberta’s intestacy rules may apply, who may be entitled to inherit, and what steps may be required to administer the estate. Getting advice early can help clarify responsibilities and identify issues before they become more difficult to address. Please contact us today for a free consultation by calling 1-866-278-4187, emailing info@familycentrallaw.com, or visiting our consultation page.
