The executor: how long to wrap up an estate

In Ontario there is a common-law rule of thumb that the executor of the estate has one year from the date of death to wrap up the estate; that is collect all estate assets, pay all estate debts and liabilities, and distribute the estate remaining assets to the beneficiaries.

Of course, if the estate is particularly complicated, more time may be required.

Also, if the Will established trusts these may endure long after the first year after death.

However, as a general matter for ‘the average’ estate, one (1) year is a good rule. It is unreasonable to demand or expect full distribution of the estate sooner than one year, in light of the executor’s need to secure tax clearance certificates from Canada Revenue Agency (CRA). On the other hand, it is very good practice to try to get the estate completely administered within a year – and if the matter is dragging on for a long period of time, the beneficiaries may need to take active steps to force the executor to act or step aside and so that someone else can complete the administration.