When you write your will, you can choose a liquidator. This person will take care of everything that needs to be done to settle your succession. Before picking a liquidator, learn more about their responsibilities and how to choose one.
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You may have heard the term “executor” used to refer to the person named in someone’s will to settle their affairs. You may also have heard the term “estate” used to refer to the assets and debts of someone who has died. In Quebec, the official term for an executor is “liquidator”, and the official term for an estate is “succession.” |
The role of a liquidator
A liquidator is the person in charge of settling your succession when you die. For example, they will close your bank accounts, file your tax returns and transfer your property to your heirs.
The powers of a liquidator
When you name a liquidator in your will, you usually describe their powers. If your will doesn’t do this, or if you don’t have a will, the liquidator’s role will be to manage your property until it’s transferred to your heirs.
Your liquidator must get permission from your heirs to sell your property, except in these situations:
- The property is too expensive to keep.
- The property is losing value.
- The property is perishable.
If you want your liquidator to be able to sell property without permission from your heirs, you must put it in your will. By doing so, you give the liquidator “full administration” over the property in your succession.
The responsibilities of a liquidator
Liquidators have legal responsibilities. The law gives liquidators these responsibilities to ensure they properly settle successions. For example, liquidators must act carefully and diligently, which means they must act like a reasonable person would in the same circumstances.
Your liquidator must also act honestly and in the best interests of your heirs, and they cannot have any conflicts of interest.
When liquidators don’t meet their responsibilities
There are legal options for dealing with a liquidator who makes unreasonable decisions, mismanages your succession, or hides information. Your heirs can go to court to have the liquidator replaced, and to get financial compensation for harm suffered. Co-liquidators and loved ones can also ask the court to do this.
Who can be a liquidator?
Generally, liquidators must be 18 years old or older. Your liquidator must also have legal capacity. In some cases, a person under 18 can be a liquidator if they are fully emancipated and legally capable.
You can also ask a professional to be your liquidator. For example, lawyers, notaries and accountants can be liquidators. But they will charge you for their services.
If a notary wrote your will, they can only be your liquidator if they settle your succession for free. Most financial institutions and wealth management companies can also be liquidators.
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Finding help to settle a succession A liquidator can get help without it affecting their role as liquidator. For example, lawyers, notaries and accountants can help liquidators settle successions. |
Choosing a liquidator
Generally, people name their liquidator in their will.
Choosing several liquidators
Your will can name several liquidators. It can also say how your liquidators will make decisions together. For example, they could decide through a simple majority vote. If your will doesn’t say who will do what, or how your liquidators will make decisions, they will have to act together unanimously.
Liquidators living outside Canada
You can choose a liquidator who lives outside Canada, but this can have tax consequences. Technically, your liquidator has “control” over the property in your succession. So if the liquidator lives outside the country, the provincial and federal tax authorities can consider it a “foreign” succession. Your heirs may have to pay more in taxes.
Dying without a will
If your will doesn’t name a liquidator, or if you die without a will, your heirs will all automatically become your liquidators. They will have to share the responsibilities.
Your heirs can also decide to choose a liquidator through a majority vote. The liquidator can be one of them. Or your heirs can choose someone else, like a notary, lawyer or accountant.
If your heirs can’t agree, they can ask the court to choose a liquidator.